Shares of edtech company Physics Wallah rallied as much as 9.5% to an intraday high of ₹128.35 apiece on the BSE today after JPMorgan and JM Financial upgraded their ratings for the stock following the company’s Q1 FY27 results.
The stock later pared some gains and was trading 5.6% higher at ₹123.85 around 11:44 IST. Its market capitalisation stood at around ₹35,883.9 Cr (about $3.7 Bn).
JPMorgan upgraded PhysicsWallah to ‘Overweight’ from ‘Neutral’, retaining its target price of ₹148. The target implies an upside of over 26% from the stock’s previous close of ₹117.20.
The brokerage said PhysicsWallah’s Q1 performance exceeded its expectations despite disruption from the NEET exam cycle. It also highlighted the company’s decision to retain its guidance of around 30% revenue growth in FY27 and divest its NBFC arm, FinZ Finance, to sharpen its focus on the core education business.
Meanwhile, JM Financial upgraded PhysicsWallah to ‘Buy’ from ‘Add’, while retaining its June 2027 target price of ₹140. The target implies an upside of nearly 20% from the previous close.
JM Financial said the company delivered a decent quarter despite the NEET-related disruption and that its underlying business fundamentals remained intact. It added that the stock’s correction of more than 20% from its recent highs had made its risk-reward profile more favourable.
Revenue Crosses ₹1,000 Cr
PhysicsWallah’s operating revenue grew 24.4% to ₹1,054 Cr in Q1 FY27 from ₹847.1 Cr in the year-ago quarter. On a sequential basis, revenue increased 14.7% from ₹918.8 Cr in Q4 FY26.
The edtech major’s net loss narrowed 30.5% to ₹88.3 Cr from ₹127 Cr, although it widened 27.8% QoQ. Total expenses rose 18% YoY to ₹1,247 Cr.
PhysicsWallah posted an EBITDA of ₹52 Cr during the quarter, compared with an EBITDA loss of ₹21 Cr in Q1 FY26. Its EBITDA margin improved to 4.9% from a negative 2.5%.
Adjusted EBITDA jumped more than fivefold to ₹135 Cr from ₹26 Cr, while the adjusted EBITDA margin expanded to 12.9% from 3.1%.
Online revenue grew 33% YoY to ₹549 Cr, with online transacting users rising 2.4% to 21.5 Lakh. Average collection per user increased 9.7% to ₹4,311. Meanwhile, revenue from the K-12 and early-learning segment surged 88% YoY to ₹105 Cr, while enrolments grew 41% to 7.8 Lakh.
The postponement and re-examination of NEET UG disrupted Physics Wallah’s usual admission cycle, resulting in a 28% decline in online NEET collections during Q1. However, collections rebounded after the NEET results were announced, rising 51% YoY between July 1 and August 13.
Physics Wallah cofounder Prateek Maheshwari said the company expects to achieve group-level PAT profitability in Q3 FY27. “We are very confident that we will achieve net-level PAT profitability in Q3,” he said, noting that Q3 is typically the company’s strongest quarter.
The company also reported an exceptional impact of around ₹42 Cr from the fair-value remeasurement of financial instruments linked to Sarrthi IAS. In July, Physics Wallah acquired an additional 11% stake in Sarrthi IAS for ₹71.81 Cr, taking its holding in the UPSC coaching institute to 51%.
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