Synopsis: DAM Capital initiated coverage on PhysicsWallah with a Buy rating and 32.26% upside potential, driven by strong brand growth, expanding education offerings, scalable operations, and improving profitability.
This Mid-Cap Stock, engaged in providing online and offline education services, test preparation courses, study materials, and learning solutions for school students and competitive exam aspirants across India, is in focus after Physicswallah gave a Buy target of Rs. 140, which has an upside potential of 32.26 percent.
With a market capitalization of Rs. 30,575.84 crore, the shares of Physicswallah Limited closed at Rs. 105.85 per equity share, down nearly 1.40 percent from its previous day’s close price of Rs. 107.35 per share.
Reason Behind the Surge:
DAM Capital, a prominent brokerage firm, has recommended a “Buy” call on Physicswallah Limited with a target price of Rs. 140 per share, indicating an upside potential of 32.26 percent from its current price of Rs. 105.85 per share.
DAM Capital has initiated coverage on PhysicsWallah with a Buy rating, highlighting its ability to achieve significant scale while maintaining profitability, an uncommon feat in India’s ed-tech sector. The company has built a strong brand across online education and continues to expand into new learning categories, helping broaden its addressable market and strengthen student engagement.
The brokerage expects growth to be driven by continued online category expansion and the maturation of its offline centres. PhysicsWallah also benefits from operating leverage, as its centralized content creation and faculty infrastructure can support a larger student base with limited incremental costs. DAM Capital forecasts a 24 percent revenue CAGR and a strong 71 percent EBITDA CAGR over FY26-28, reflecting improving profitability alongside sustained business growth.
Management Guidance:
PhysicsWallah’s management remains optimistic about FY27 and expects revenue to grow by more than 30 percent compared to FY26. The company believes its online business will continue to be the key growth driver, while its offline centers are also expected to deliver healthy growth. This balanced expansion across segments is likely to strengthen its overall market presence.
In addition to revenue growth, management has guided for more than 100 percent growth in EBITDA during FY27. The improvement is expected to come from better operational efficiency, tighter cost control, and increased scale of operations. The company remains focused on sustainable growth and improving profitability while continuing to invest in expanding its education ecosystem.
Company Overview:
PhysicsWallah (PW) is one of India’s leading edtech companies, offering affordable education through both online and offline platforms. Founded by educator Alakh Pandey, the company began as a YouTube channel and later expanded into a comprehensive learning ecosystem for school students and competitive exam aspirants. PW is known for its low-cost courses, strong student reach, and focus on making quality education accessible to learners across India.
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 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 74 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.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
