PhysicsWallah shares jump 10% after Q2 profit more than doubles: Buy, sell or hold? Brokerages on Alakh Pandey-led firm
Shares of edtech company PhysicsWallah surged 10% on Thursday, 5 November, after the company reported more than a twofold increase in its consolidated net profit for the second quarter of FY27.
PhysicsWallah reported a consolidated net profit of ₹143.63 crore for the quarter ended 30 September 2026, compared with ₹70 crore in the corresponding quarter last year.
Consolidated revenue from operations grew around 18% year-on-year to ₹1,242.26 crore in Q2 FY27, from ₹1,051.24 crore in the September 2025 quarter, the company said in a statement.
“We delivered record revenue and a sharp improvement in profitability, while our learner base kept widening across K-12, vernacular and new categories. Our focus remains on scaling affordable, tech-led education with disciplined capital allocation,” said Alakh Pandey, Founder and CEO of PhysicsWallah.
The company recorded growth of more than 30% in NEET enrolments during the September quarter, as demand that had been deferred following the postponement of NEET UG examinations came through.
Its online business continued to drive growth, with revenue increasing 26.4% year-on-year to ₹694 crore. Revenue from offline operations rose 9% to ₹541 crore during the quarter.
PhysicsWallah has moderated the pace of opening new centres compared with its earlier IPO commitment, prioritising academic performance at existing centres and improving their operating economics.
The company opened 56 centres in the first half of FY27, compared with 128 centres during the corresponding period of FY26. It said the slower expansion was intentional and part of a calibrated strategy involving smaller centres.
“We are opening new centres more slowly than we indicated at the IPO — 56 in H1 of FY27, against 128 in H1 FY26. This slower growth is intentional. We are taking a calibrated approach to new centres, which are smaller than before, while we focus on academic excellence and on improving the economics of existing centres under our hyper-local strategy,” the company said.
PhysicsWallah plans to open around 25–30 centres annually over the next two years.
Motilal Oswal Financial Services has maintained its Buy rating on PhysicsWallah, with a target price of ₹200, implying an upside potential of 57% from the current market price of ₹127.
The brokerage said PhysicsWallah reported consolidated revenue of ₹1,240 crore in Q2 FY27, registering year-on-year growth of 18.2%. However, the growth was below its estimate of 22.6%.
The online channel remained a key growth driver, with revenue rising 26.4% year-on-year to ₹690 crore, compared with the brokerage's estimate of 23.2% growth. The segment reported pre-Ind AS EBITDA of ₹239 crore, with a margin of 34.4%.
In contrast, the offline channel recorded revenue growth of 9% year-on-year to ₹540 crore, significantly below Motilal Oswal's estimate of 20.8%. The segment reported a pre-Ind AS EBITDA loss of ₹8 crore, with a negative margin of 1.5%.
Consolidated adjusted profit after tax (PAT) stood at ₹150 crore, up 114% year-on-year, compared with the brokerage's estimate of ₹124.2 crore.
For the first half of FY27, PhysicsWallah's revenue and EBITDA grew 21% and 94%, respectively, on a year-on-year basis. Motilal Oswal expects revenue and EBITDA growth of 23% and 82%, respectively, in the second half of FY27.
The brokerage values PhysicsWallah using a sum-of-the-parts (SoTP) methodology to arrive at its target price of ₹200 and has reiterated its Buy recommendation.
PhysicsWallah share price today opened at an intraday high of ₹140 apiece on the BSE, the stock touched an intraday low of ₹132 per share.
Gaurav Arora, Head of Research at SAHI, said PhysicsWallah shares have been trading in a broad range of ₹115–160 since July. The sharp rally following the company's Q2 FY27 results has lifted the stock to around ₹135–140, taking it above both its key exponential moving averages (EMAs).
He identified ₹128–130 as the immediate support zone, adding that a break below this level could drag the stock towards ₹115–120, which forms the lower end of its trading range. On the upside, ₹143–150 has acted as a strong resistance zone, capping every rally since July. A sustained close above ₹150 would be crucial for the stock to move beyond a results-driven bounce and establish a sustained breakout.
Arora also cautioned investors against reading too much into the more than twofold jump in quarterly profit, noting that the test-preparation business typically sees a larger share of new batch enrolments in the first half of the financial year. Consequently, the company may find it challenging to sustain the same growth momentum in the coming quarters.
He added that with PhysicsWallah trading at over 240 times its trailing earnings, investors would look for evidence that the improvement in margins is sustainable. The ₹150 level remains crucial to watch, he said.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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HomeMarketsStock MarketsPhysicsWallah shares jump 10% after Q2 profit more than doubles: Buy, sell or hold? Brokerages on Alakh Pandey-led firm
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