Physics Wallah Ltd IPO – Mainboard
About Physics Wallah – Simple Explanation
Physics Wallah is an Indian online and offline education company founded in 2016 by Alakh Pandey. It provides affordable and high-quality education to students through YouTube, mobile apps, websites, and physical coaching centers. The company focuses on helping students prepare for important exams like:
- JEE (for engineering entrance)
- NEET (for medical entrance)
- UPSC (for civil services)
- Board exams (Class 6–12)
- Banking, Defence, SSC exams (competitive exams for government jobs)
Think of it as a “school-like platform” that charges affordable fees (₹999–₹4,000 instead of ₹30,000–₹1,00,000) and combines YouTube free learning + cheap paid courses + offline coaching centers.
Read full DRHP here: |SEBI DRHP PHYSICS WALLAH|
IPO Details at a Glance
| Detail | Information | |
|---|---|---|
| IPO Opening | November 11, 2025 | |
| IPO Closing | November 13, 2025 | |
| Price Per Share | ₹103 – ₹109 | |
| Minimum Investment | ₹14,933 (137 shares at top price) | |
| Total Money Raised | ₹3,480 crore | |
| Fresh Shares | ₹3,100 crore | |
| Existing Shareholder Sale (OFS) | ₹380 crore | |
| Listing Date | November 18, 2025 | |
| Face Value | ₹2 |
IPO Timeline – Key Dates
| Event | Date | |
|---|---|---|
| IPO Opens | Nov 11, 2025 | |
| IPO Closes | Nov 13, 2025 (5 PM) | |
| Allotment | Nov 14, 2025 | |
| Refunds Issued | Nov 17, 2025 | |
| Shares Credited | Nov 17, 2025 | |
| Listing | Nov 18, 2025 |
Use of Money – Where Will Your Investment Go?
The ₹3,100 crore of fresh money will be used for:
| Purpose | Amount (₹ Cr) | What It Means |
|---|---|---|
| Marketing & Advertising | 710 | Making more people aware of Physics Wallah |
| Lease/Rent for Coaching Centers | 548 | Paying rent for 198+ coaching centers |
| Building New Coaching Centers | 460 | Opening new offline study centers in cities |
| Investment in Subsidiaries | 471 | Supporting related companies/businesses |
| General Corporate Needs | 311 | Day-to-day business expenses |
Business Model – How Does Physics Wallah Make Money?
Physics Wallah has 5 main ways to earn money:
1. Online Courses (₹1,404 Cr in FY25 – 49% of total revenue)
- Students buy courses on the Physics Wallah app/website
- Price range: ₹999 to ₹4,000 per course
- What they get: Video lectures, notes, live classes, doubt-clearing sessions
- Example: If 5 lakh students buy a ₹2,000 course = ₹100 crore revenue
2. Offline Coaching Centers – PW Vidyapeeth & Pathshala (₹1,352 Cr in FY25 – 47% of revenue)
- Students attend physical coaching centers in cities like Kota, Delhi, Lucknow, Pune
- Price range: ₹40,000 to ₹80,000 per year (much cheaper than traditional coaching)
- What they get: Live classes, study materials, mentoring, doubt-clearing
- Centers: Already has 198 centers in 109 cities and expanding rapidly
3. Books & Study Materials (₹259 Cr in FY25 – 9% of revenue)
- Selling printed books, mock test papers, study guides through:
- PW Store (company’s own online store)
- Amazon and other retailers
- Price: ₹200 to ₹2,000 per book
- What students get: Practice papers, reference books, test series
4. Value-Added Services (Hostel, Transport, Premium Access) – Included in above
- Students pay extra for:
- Hostel facility at coaching centers
- Daily transport service
- Premium content access
- 1-on-1 mentoring
5. YouTube & Advertisement Revenue – Small portion
- YouTube ads on free videos (millions of subscribers)
- Brand partnerships (only education-related)
- This also acts as free marketing funnel (free → paid conversion)
Key Financial Metrics – Easy Explanation
| Metric | FY24 (Last Year) | FY25 (Current Year) | What It Means |
|---|---|---|---|
| Revenue | ₹1,941 Cr | ₹2,887 Cr | Money earned from all sources – 49% growth |
| Loss (PAT) | ₹1,131 Cr loss | ₹243 Cr loss | Still losing money but losses cut by 78% |
| EBITDA | Negative | ₹193 Cr profit | Core operations are now profitable |
| Online Revenue | ₹968 Cr | ₹1,404 Cr | Online courses growing strong |
| Offline Revenue | ₹925 Cr | ₹1,352 Cr | Coaching centers becoming major revenue driver |
- Revenue Growing: Physics Wallah is earning more money each year
- Losses Reducing: Company is moving toward profitability
- Hybrid Model Working: Both online and offline are earning almost equally
- Core Business Profitable: Even though total loss exists, the actual education business is making money
Employee Costs – Understanding the Big Expense
| Year | Employee Cost | % of Revenue | What It Shows |
|---|---|---|---|
| FY24 | ₹1,160 Cr | ~60% | For every ₹100 earned, ₹60 goes to employee salaries |
| FY25 | ₹1,401 Cr | ~48% | Growing but better controlled |
| Growth | ↑ 21% increase | – | Salaries rising as company hires more teachers |
Why Employee Costs Are High:
Teachers and instructors are the main product of Physics Wallah. More teachers = better teaching = more students. The company has to pay competitive salaries to keep good teachers from leaving.
Teacher Attrition Risk: 25–30% teachers leave each year, meaning:
- New hiring every year
- Training costs for new teachers
- Potential impact on quality if top teachers leave
Cost of Acquisition – What Did Founders Pay to Build This?
Physics Wallah is a startup, not an acquisition. It was built organically from 2016 onward. However:
| Acquisition/Investment | Amount | What Was Acquired |
|---|---|---|
| Xylem Learning | ~₹400+ Cr | UPSC and competitive exam coaching platform |
| Brand partnerships | Various | Small partnerships but no major acquisitions |
No major acquisitions – Physics Wallah grew organically through teacher hiring and student growth.
Promoter Background & Stake
| Detail | Information |
|---|---|
| Founder 1 | Alakh Pandey (Chief Learning Officer) – The “Physics Guy” |
| Founder 2 | Prateek Maheshwari (Chief Strategy Officer) |
| Education | Alakh: Dropped out from HBTI Kanpur in 3rd year to teach; no formal degree but self-taught |
| Founder Stake Before IPO | 80%+ (combined) |
| Stake After IPO | Will reduce but remains majority owners |
| OFS Amount | ₹380 Cr (founders selling part of their stake) |
What This Means:
- Founders still own majority after IPO
- Founders are personally selling ₹380 Cr (partial exit for them)
- Shows confidence in the business
Industry Analysis – How Is EdTech Growing in India?
Big Opportunity:
| Metric | Size/Details |
|---|---|
| Total EdTech Market | $10–15 billion in India (growing 30%+ yearly) |
| Students Online | 50+ million using edtech platforms |
| Target Audience | 400+ million students in India, mostly underserved |
| Growth Drivers | Internet penetration, smartphone adoption, competitive exam needs |
Physics Wallah’s Position:
- #1 in Affordable Segment – Focus on mass market, not premium
- Profitable Unlike Competitors – Byju’s, Vedantu, Unacademy still losing money
- Hybrid Model Pioneer – Combining online + offline successfully
- Largest Unorganized Coaching Replacement – Competing with Kota coaching culture
Key Strengths & Why Investors Like It
Biggest Strengths:
- Affordability & Volume Model
- Charges ₹999–₹4,000 vs competitors’ ₹30,000–₹1,00,000
- Attracts mass market students
- Profitable due to volume, not margins
- Founder Trust & Brand
- Alakh Pandey is personally teaching (not just owner)
- 8 million YouTube subscribers (strong organic brand)
- Personal credibility converts to student loyalty
- Hybrid Expansion Working
- Equal revenue from online and offline
- 198 coaching centers in 109 cities
- New cities added monthly
- Profitability Journey
- Losses reduced from ₹1,131 Cr to ₹243 Cr in one year
- Core business is profitable
- Unlike competitors, showing path to breakeven
- Low Marketing Spend
- 70%+ organic growth through word-of-mouth
- Low customer acquisition cost
- YouTube serves as free marketing
Key Risks & Concerns – Things to Watch Out For
Major Concerns:
| Risk | Why It Matters | Example/Impact |
|---|---|---|
| Still Losing Money | Company hasn’t turned profitable yet | ₹243 Cr loss in FY25 |
| High Employee Costs | 48% of revenue goes to teacher salaries | If cost controls fail, losses widen |
| Teacher Attrition (25–30% yearly) | Best teachers leaving to start rivals | Quality can drop, revenue risk |
| Intense Competition | Byju’s, Vedantu, Unacademy, Unilus, etc. | Price wars may hurt margins |
| Regulatory Risk | EdTech faces government scrutiny | New rules on online education could impact model |
| Customer Concentration | Heavy dependence on JEE/NEET students | One segment failure = revenue hit |
| Reliance on Founder | Too much on Alakh Pandey’s image | If he leaves or has issues, brand can suffer |
Valuation – Is It Expensive?
| Metric | Physics Wallah | Industry Average |
|---|---|---|
| Post-IPO Market Cap | ₹31,170 Cr (estimated) | – |
| P/E Ratio | Negative (still loss-making) | – |
| P/S Ratio | ~10.8x | 5–8x (reasonable for growth) |
| Price to Book | Moderate | – |
Simple Translation:
- Can’t use traditional P/E ratio because company is loss-making
- Price-to-Sales ratio seems reasonable given growth trajectory
- Valuation = Bet on future profitability
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.