Motilal Oswal sees Physics Wallah’s offline network driving next growth phase
Motilal Oswal initiated coverage on Physics Wallah with a Buy and ₹200 target, citing low-cost digital acquisition and maturing offline centres. The edtech company expanded its physical network from 28 centres in FY23 to 353 by FY26-end, with offline revenue at ₹1,770 crore.
What happened
Motilal Oswal initiated Physics Wallah with a BUY and Rs 200 target, citing its low-cost online acquisition model, offline-centre maturation and improving unit
Key facts
- BUY target price: Rs 200 per share
- Implied upside: 66% from Rs 121
- Share price high: Rs 130.85, up 8.55%
- More than 100 million YouTube subscribers
- Revenue CAGR: about 74% between FY23 and FY26
- Offline centres: 28 in FY23 to 353 by FY26-end
- Offline revenue: Rs 1,770 crore
- Online revenue CAGR forecast: about 28% for FY26-FY30
- Offline revenue CAGR forecast: about 20% for FY26-FY30
- Online pre-Ind AS EBITDA margin forecast: about 30% by FY28
- Offline pre-Ind AS EBITDA margin forecast: 3% by FY28
Why this matters
Physics Wallah’s centre buildout signals attractive partnership, real-estate, and regional consolidation opportunities for businesses seeking access to its fast-growing hybrid education network.
What to watch
- Offline revenue growth and enrolment growth relative to centre additions.
- Revenue and EBITDA contribution from mature versus newly opened centres.
- Average classroom utilization, batch fill rates and student retention.
- Customer acquisition cost trends and the share of leads converted from digital to offline.
- Faculty attrition, student outcomes and complaint levels as the network scales.
- Competitive pricing and expansion responses from Aakash, Allen, Unacademy and local coaching operators.
- Evidence of cross-selling between online, offline and hybrid products.
- Prioritize centre densification in proven cities before entering lower-demand catchments.
- Use digital lead generation to fill offline batches, reducing dependence on high-cost local advertising.
- Expand hybrid offerings, doubt-solving, test series and recurring subscriptions to raise student lifetime value.
- Standardize faculty recruitment, academic outcomes tracking and centre-level profitability controls.
- Pursue selective acquisitions or partnerships in regional test-prep markets where local brands have strong student pipelines.