5 things you need to know before investing in Physics Wallah’s IPO

November 7, 2025

Investor confidence in initial public offerings (IPOs) has increased due to India’s strong economic growth.

A favorable environment for IPO investments has been created by strong domestic liquidity from mutual funds, insurance companies and individual investors.

Numerous IPOs in 2025 have delivered listing gains, many of which debuted at prices well above the issue price.

And we have another IPO coming up soon. It’s from edtech company Physics Wallah.

About physics Wallah

Physics Wallah is an Indian edtech company founded by Alakh Pandey in 2016, originally as a YouTube channel focused on teaching physics for competitive exams such as JEE and NEET.

Headquartered in Noida, the company aims to democratize education by providing affordable and accessible quality education through online, offline and hybrid platforms in multiple languages.

It offers courses for various competitive exams, higher education, skill programs and an Institute of Innovation for job-ready residential programs.

What makes this IPO so special?

• Solid user base: Physics Wallah had a paid user base of approximately 4.46 million (m) in FY25, which represents significant growth from 1.76 million paid users in FY23.
• Various income streams: The company earns through multiple channels including online courses, offline centers, skill programs and subscriptions, reducing dependence on a single segment.
• Use of proceeds for expansion: Proceeds from the IPO will be earmarked for aggressive offline center expansion, technology upgrades and acquisitions, reflecting a clear growth plan that boosts investor confidence.
• Affordable education model: Unlike many premium edtech companies, Physics Wallah focuses on affordable education for a wider audience, including tier 2 and 3 cities, using a hybrid approach (online, offline and hybrid learning centres), which sets it apart in terms of accessibility and market reach.
• Market position and growth: Physics Wallah is India’s largest revenue-generating edtech company with a strong position in the affordable and hybrid education space.

Key details of Physics Wallah’s IPO

• IPO opening date: November 11, 2025
• Closing date of the IPO: November 13, 2025?
• Price range: Rs 103 – Rs 109 per share.?
• Lot size: 137 shares per lot; minimum investment is Rs 14,933 in the upper band for retail investors.?
• Breakdown of the problem: New issue of Rs 31 billion, Offer for Sale (OFS) of Rs 3.8 billion.
• Date of mention: November 18, 2025 on BSE and NSE.?
• Allocation and refunds: Completion of the allocation on November 14, 2025; refunds and demat credit expected on November 17, 2025.

A look at the financial figures

Physics Wallah achieved nearly 50% revenue growth in FY25, while significantly reducing losses by approximately 78%.

The company became EBITDA positive for the first time, with improved operational efficiency. Expansion into offline centers and paid user base drove this growth, along with increased workforce to support scale-up across various education segments.

However, the company should post a net profit in the coming years.

Risk factors

Key risk factors for Physics Wallah’s IPO include:

• Company reporting losses: Physics Wallah has suffered significant losses in recent years. Although losses have narrowed, the company has yet to turn a profit on a net level.
• Regulatory risks: Increasing government regulations such as the Guidelines for the Regulation of Coaching Centers and state-specific rules may result in compliance burdens or operational limitations.
• Intellectual Property (IP) Risks: Study material may be challenged or plagiarized.
• The competition is fierce: As competition intensifies, costs can rise and margins shrink.
• Faculty/talent attrition and quality risk: Large pool of teachers, but turnover remains high in a company where educational quality is an important differentiator.
• Safety risks: Failure to ensure student safety or manage adverse incidents could lead to reputational damage, legal claims or regulatory scrutiny.

Should you consider a Physics Wallah IPO?

Physics Wallah is a strong player in the edtech space with good growth prospects. The IPO offers investors the opportunity to gain exposure to the evolving edtech space, but comes with risks typical of growth-stage edtech companies.

The other risks include the company’s past losses and the intensity of competition. Investors should carefully consider all these factors before participating in the IPO.

Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…