PhysicsWallah jumps 6% after Motilal Oswal initiates Buy with ₹200 target

PhysicsWallah rose as much as 6% after Motilal Oswal began coverage with a ₹200 target. The edtech reported Q1 FY27 operating revenue of ₹1,054 crore, up 24.4% year on year, alongside positive EBITDA and a narrower net loss.

— Source publishedFri, 4 Sept, 2026, 11:34 IST·First seen Fri, 4 Sept, 2026, 12:26 IST·Source Inc42 · Buzz

What happened

PhysicsWallah shares gained after Motilal Oswal initiated Buy coverage with a ₹200 target. The edtech reported Q1 FY27 revenue growth, EBITDA profitability and

Key facts

  • Shares rose as much as 6% to ₹127.80; traded 5.3% higher at ₹127 at 11:00 IST
  • Motilal Oswal target price: ₹200
  • Market capitalisation: ₹36,768.7 Cr ($3.8 Bn)
  • Revenue CAGR: about 74% between FY23 and FY26
  • Online revenue CAGR forecast: 28% between FY26 and FY30
  • Pre-Ind AS EBITDA margin forecast: 26% in FY26 to 30% by FY28
  • India education market: ₹15-₹16 Lakh Cr
  • Q1 FY27 operating revenue: ₹1,054 Cr, up 24.4% YoY
  • Q1 FY27 net loss: ₹88.3 Cr, narrowed 30.5% YoY
  • Q1 FY27 EBITDA: ₹52 Cr versus ₹21 Cr loss a year earlier
  • Q1 FY27 adjusted EBITDA: ₹135 Cr, up more than fivefold
  • Online revenue: ₹549 Cr, up 33% YoY
  • K-12 and early-learning revenue: ₹105 Cr, up 88% YoY
  • Collections rose 51% YoY between July 1 and August 13
  • Sarrthi IAS remeasurement impact: about ₹42 Cr
  • PhysicsWallah increased Sarrthi IAS stake to 51% in July

Why this matters

PhysicsWallah’s improving profitability and ₹1,054 crore quarterly revenue base make it a more credible partner or acquisition target across education, test prep, and adjacent student-services categories.

What to watch

  • Whether quarterly adjusted EBITDA remains positive after enrollment-seasonality effects and growth investments.
  • Operating revenue growth versus the reported 24.4% YoY pace, including student enrollment, paid-user growth and average revenue per learner.
  • Net-loss trajectory, operating cash flow, receivables/collections and any need for additional external funding.
  • Offline-center additions, utilization rates, cohort retention and center-level profitability.
  • Further analyst target-price revisions, institutional ownership changes and execution against the ₹200 target narrative.
  • Competitive pricing actions, education-policy changes and regulatory scrutiny affecting coaching and online-learning providers.
  • Use the analyst upgrade and improving earnings narrative to accelerate institutional investor engagement and reinforce the path to net-profit breakeven.
  • Prioritize expansion into high-return offline and hybrid learning centers while monitoring payback periods and occupancy rather than pursuing broad footprint growth.
  • Increase cross-selling of test preparation, upskilling and school-learning products to lift learner lifetime value and reduce customer-acquisition-cost dependence.
  • Peers may respond with promotional pricing, faculty hiring and offline-center expansion, raising customer-acquisition costs across the category.

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