Shares of Physicswallah increased over 5 percent during early trading on Friday, following the edtech company’s announcement of a significant reduction in quarterly losses and robust revenue growth. Analysts noted improvements in profitability, operational leverage, and ongoing momentum in both online and offline segments.
At 10:45 AM, the stock rose by 5.3 percent to ₹115.64, reaching a peak of ₹117.95, compared to the previous close of ₹111.90.
On Wednesday, after market hours, Physicswallah disclosed a standalone net loss of ₹131.76 crore for Q4 FY26, down from a loss of ₹314.18 crore in the same quarter last year, indicating a marked year-on-year improvement.
Brokerages expressed a generally positive outlook on the stock, emphasizing strong revenue growth, enhancing margins, and sustained traction in the online education sector. Goldman Sachs maintained a neutral rating but raised its target price to ₹133 from ₹130. The brokerage observed that Q4 revenue growth accelerated by 51 percent year-on-year, surpassing estimates, while the EBITDA margin also exceeded expectations due to operational leverage.
Goldman Sachs indicated that Physicswallah clarified its online segment would remain the primary focus, with no significant investments anticipated in the K-12 segment, a move that could allay investor concerns regarding capital allocation. However, the firm warned that limited visibility regarding the company’s non-banking financial company (NBFC) strategy could impact valuation multiples, prompting them to increase revenue and EBITDA forecasts by up to 7 percent and 10 percent, respectively.
HSBC commenced coverage with a buy rating and a target price of ₹135, underscoring the contributions of offline expansion and premium offerings in the online sector to overall growth. The brokerage noted the 51 percent year-on-year growth was backed by offline expansion and increasing premiumisation in online products. HSBC remarked that long-term value creation would rely on the successful execution of the offline business strategy and deeper penetration into the K-12 online market, anticipating an EBITDA compound annual growth rate (CAGR) of 60 percent from FY26 to FY30.
JM Financial highlighted Physicswallah’s strong operating performance in Q4 FY26, reporting consolidated revenue growth of 51 percent year-on-year. The brokerage noted growth in both online and offline segments, expanding by 43.7 percent and 53.9 percent, respectively, with profitability significantly improving as pre-Ind AS EBITDA turned positive at ₹93 million, compared to a loss of ₹1.4 billion in the same quarter last year.
JM Financial stated that the online segment remains the company’s strategic focus, bolstered by AI-driven personalized learning initiatives, asset-light K-12 expansion, and selective online-first acquisitions. The management anticipates continuing robust growth in the offline segment, likely reaching pre-Ind AS EBITDA break-even in FY27E, although JM Financial projects break-even might only occur in FY28E.
The firm expects revenue growth of 30 percent in FY27E, alongside a doubling of pre-Ind AS EBITDA. However, JM Financial downgraded the stock rating to “add” from “buy,” citing limited near-term upside following a 25 percent stock increase since March 2026 and concerns over a ₹120 crore infusion into a wholly-owned NBFC subsidiary established for education loans. The brokerage marginally raised its target price for March 2027 to ₹125 from ₹120.
Published on May 29, 2026.
