Synopsis: PhysicsWallah has shifted to a partnership-based student lending model, working with regulated NBFCs to reduce credit risk while continuing to provide education financing solutions.
This Mid-Cap Stock, engaged in providing online and offline education services, test preparation courses, study materials, and digital learning solutions for students across India, jumped 17.75 percent in today’s intraday trade. In this article, we will explore the reasons for the stock’s surge.
With a market capitalization of Rs. 30,619.17 crores, the share of Physicswallah Limited has reached an intraday high of Rs. 108.45 per equity share, rising nearly 17.75 percent from its previous day’s close price of Rs. 92.10. Since then, the stock has retreated and is currently trading at Rs. 105.70 per equity share.
Reason Behind the Surge
PhysicsWallah has revised its student lending strategy and will now partner with multiple regulated NBFCs instead of directly expanding lending through its subsidiary, FinZ Finance. The company stated that this move will help reduce balance sheet exposure and credit-related risks while continuing to support students with financing options for their education.
Under the new model, PhysicsWallah will act as a technology platform that connects students with approved lending partners based on their academic journey and financing needs. The company believes this approach will improve affordability, increase access to education financing, and enable greater scalability. The future strategic direction of FinZ Finance will be decided later, subject to board and regulatory approvals.
Management Commentary
Prateek Maheshwari, Co-founder of Physicswallah, in a news meeting, mentioned that “We received feedback from our partners that our core strength lies in building communities and our online business. Our lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities.
We truly believe that prudent capital allocation and shareholder value remains our foremost priority and in light of the feedback received from our partners to the said announcement, we have exercised our fiduciary responsibility to revisit this decision and enable student lending through regulated third-party NBFCs.”
Company Overview
PhysicsWallah (often branded as PW) is an Indian educational technology (edtech) company that started from a YouTube channel and grew into a large online–offline learning platform. It’s known for low-priced courses for competitive exams and school students, and for positioning itself as a “mass-market” alternative to more expensive rivals.
Management Guidance
PhysicsWallah’s management expects strong growth in FY27, with revenue projected to increase by more than 30 percent compared to FY26. The company anticipates its online business to grow faster than the offline segment, while offline operations are also expected to deliver healthy growth.
Management has further guided for more than 100 percent growth in EBITDA on an annual basis, reflecting its focus on improving profitability, operational efficiency, and sustainable long-term expansion.
Recent Quarter Results
Coming into financial highlights, Physicswallah Limited’s revenue has increased from Rs. 610 crore in Q4 FY25 to Rs. 919 crore in Q4 FY26, which has grown by 50.66 percent. The company’s net loss has reduced from Rs. 289 crore in Q4 FY25 to Rs. 69 crore in Q4 FY26.
Physicswallah Limited’s revenue has grown at a CAGR of 73.71 percent over the last three years. In terms of return ratios, the company’s ROCE and ROE stand at 4.02 percent and -0.48 percent, respectively. Physicswallah Limited has an earnings per share (EPS) of Rs. -0.08, and its debt-to-equity ratio is 0.23x.
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