PhysicsWallah jumps 6% after Motilal Oswal starts Buy coverage with ₹200 target
PhysicsWallah reported Q1 FY27 operating revenue of ₹1,054 crore, up 24.4% year on year, while EBITDA turned positive at ₹52 crore. The edtech also increased its stake in Sarrthi IAS to 51% and is targeting group PAT profitability in Q3 FY27.
What happened
PhysicsWallah shares gained after Motilal Oswal began coverage with a Buy and ₹200 target. The Indian edtech reported 24.4% Q1 FY27 revenue growth, positive
Key facts
- Shares rose as much as 6% to ₹127.80
- Motilal Oswal target price: ₹200
- Market capitalisation: ₹36,768.7 crore ($3.8 billion)
- Revenue CAGR: about 74% between FY23 and FY26
- Q1 FY27 operating revenue: ₹1,054 crore, up 24.4% YoY
- Q1 FY27 net loss: ₹88.3 crore, narrowed 30.5% YoY
- Q1 FY27 EBITDA: ₹52 crore, versus ₹21 crore loss a year earlier
- Online revenue: ₹549 crore, up 33% YoY
- Stake in Sarrthi IAS increased to 51%
Why this matters
Increasing Sarrthi IAS ownership to 51% strengthens PhysicsWallah’s presence in the high-value UPSC preparation segment and signals continued portfolio consolidation.
What to watch
- Q2 FY27 revenue growth versus the 24.4% YoY Q1 pace and whether EBITDA stays positive after seasonal spending.
- Evidence that group PAT profitability can be reached in Q3 FY27, including depreciation, finance costs, acquisition-related expenses and minority-interest effects.
- Sarrthi IAS enrollment growth, integration costs, contribution margin and cross-selling performance after PhysicsWallah takes majority control.
- Marketing cost as a share of revenue, offline-center additions and payback periods for new centers.
- Student outcomes, renewal rates and competitive pricing actions by Unacademy, Allen, Aakash and other test-prep providers.
- Further analyst coverage, target-price revisions, institutional ownership changes and management guidance updates.
- Use the 51% Sarrthi IAS stake to cross-sell UPSC, state-PSC and broader government-exam preparation products through PhysicsWallah's digital and offline distribution.
- Prioritize conversion of Q1 EBITDA profitability into operating cash flow by controlling faculty, center-launch and promotional spending.
- Increase investor communication around segment-level revenue, offline-center economics, repeat enrollment, cash burn and the timeline to Q3 FY27 group PAT profitability.
- Potentially pursue selective bolt-on acquisitions or partnerships in high-retention exam categories, using improved profitability and market visibility to strengthen negotiating leverage.