PhysicsWallah Limited, an edtech platform that began as a YouTube channel and expanded into online + offline coaching, is going public in November 2025. For many first-time investors or small investors, this PhysicsWallah IPO offers an opportunity to invest in a growth story — but it also comes with risks. In this post we’ll walk through what the IPO entails, the company’s business, the numbers, and what you should keep in mind before applying.
The Company & Business Model
Who PhysicsWallah is and how they make money.
- PhysicsWallah started as a YouTube teaching channel by Alakh Pandey, focusing on JEE/NEET physics, and grew into a full-fledged edtech business.
- The company offers:
- Online courses (app, website, YouTube)
- Tech-enabled offline centers and hybrid centers (where students attend live online classes at physical locations)
- Their target segments: school (6-12), competitive exams (JEE, NEET), government exams, and upskilling for professionals.
- Why this model appeals: It combines scalability (online) with reach (offline/hybrid centres). “they can reach many students online, while also offering face-to-face/physical center options”.
Also Read: Fundamental Analysis Explained: How to Find the True Value of a Stock
PhysicsWallah IPO Basics – Key Dates & Numbers
Here are the essentials of the Physicswallah IPO that an investor should know.
- Bidding dates: 11 Nov 2025 to 13 Nov 2025.
- Listing date (tentative): 18 Nov 2025.
- Price band: ₹ 103 to ₹ 109 per share.
- Lot size for retail: 137 shares (minimum investment ~ ₹14,933) at upper band.
- Issue size: Total ~ ₹3,480 crore (fresh issue + offer-for-sale) with fresh issue ~ ₹3,100 crore and OFS ~ ₹380 crore.
Use of Funds (What the Company Will Do with the Money)
The company plans to use the IPO proceeds — this helps assess growth potential vs risk.
According to the prospectus the funds will be used for:
- Setting up new offline & hybrid centres (capital expenditure)
- Lease payments for existing offline & hybrid centres.
- Investment in subsidiaries (e.g., Xylem Learning, Utkarsh Classes) for expansion.
- Server and cloud infrastructure (to support online scale) ~ ₹200 crore.
- Marketing initiatives (brand-building) ~ ₹710 crore.
- General corporate purposes and acquisitions/inorganic growth.
Why this matters for beginners:
If you invest, you’re partly betting that the company will successfully execute this growth plan. If they mis-manage expansion (e.g., offline centres become a drag), then risks increase.
Strengths & Growth Drivers
- Strong brand and large student base (online presence via YouTube + app) — which gives a platform to convert free users to paid.
- Hybrid model: combining online scale + offline centres means more reach and possibly higher revenues per student.
- Growth in educational demand in India: The broader market for education and upskilling is large, giving room for expansion.
- The company already has track record of rapid growth (e.g., stated user growth).
The PhysicsWallah reported FY25 revenue of Rs 2,887 crore, a sharp jump from Rs 44 crore in FY23 and Rs 1,941 crore in FY24, reflecting a CAGR of over 90%.
The company also turned EBITDA-positive in FY25 compared to a loss of Rs 829 crore in FY24 – translating to a 6.7% EBITDA margin.
Maheshwari said EBITDA improvements are driven by operational leverage, with people costs declining from 60% of revenue in FY24 to 49% in FY25. “We’ve also generated over Rs 1,000 crore of free cash from operations, and Rs 500 crore in FY25 alone,” he added.
Risks & Things to Watch
Before you apply in the Physicswallah IPO see followings
- Valuation seems stretched: At upper price band, multiple of revenue/price-to-sales is relatively high. Analysts say “the IPO appears fully priced” or only “subscribe for long-term”.
- Weak subscription: Early subscription numbers show limited demand (which may reflect risk of listing or investor caution).
- Dependence on founders / brand: Since brand (Alakh Pandey etc) is a major draw, any change in leadership or drop in quality may hurt.
- Offline expansion risk: Offline/hybrid centres come with cost and risk (leases, infrastructure, competition). If growth doesn’t happen as planned, profits may be pressured.
- Competitive environment: Edtech is crowded and has seen troubles (e.g., layoffs in competitors). So, executing will matter.
- Profitability concern: High growth but may take time to become sustainably profitable despite revenue growth. Some analysis notes operating loss still exists.
PhysicsWallah IPO offers a promising growth story, but investors must balance brand appeal with business fundamentals. Suitable for long-term investors with moderate risk appetite
Conclusion
Wrap up with a balanced perspective.
The PhysicsWallah IPO offers an opportunity to invest in a home-grown Indian edtech player with strong brand and growth ambitions. For investors, it’s a chance to participate in a growth story. But it’s not a “sure thing”. The valuation is on the higher side, execution risk is present, and the short-term gains may be modest. If you decide to apply, do so with a long-term mindset, and not with the hope of instant profits. As always, invest only what you can afford, and ensure your other portfolio foundations (emergency fund, diversified investments) are in place.
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