revenue growth
32–35 pct
FY 2026
official guidance
PHYSICSWALLAH LIMITED
Last · —$136.33-4.58 (-3.25%)live · yahoo · 0s ago
Market cap——
P/E · TTM—fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
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Volume—session
| Revenue | ₹233.4M |
|---|---|
| Net income | ₹66.4M |
| Net margin | 28.4% |
| Return on equity | 384.6% |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution is offset by decelerating mature categories and aggressive capital allocation to early-stage initiatives.
Hold: Q3 revenue grew 34% to INR1,082 crore with 20.2% pre-Ind AS EBITDA margin, while nine-month operating cash flow reached nearly INR600 crore and treasury stood at INR5,000 crore.
The core business is executing, but JEE/NEET growth is only 3%-4% and management is committing INR400 crore to an unproven K-12 expansion while making largely unquantified AI and long-term growth claims.
Themes
- Revenue Growth
- Online Education
- Offline Expansion
- K12 Expansion
- Ai In Education
- M And A
Near term
Management guides to FY26 revenue growth of 32%-35%; Q4 marketing should remain elevated for the next academic-session acquisition cycle despite lower full-year marketing intensity.
Online revenue growth of 38% and offline growth of 26% will be tested as the company enters the seasonal enrollment period.
New categories are still small: state boards generated INR22 crore from 175,000 paid learners and vernacular courses INR24 crore from 94,000 paid students in nine months.
Longer term
The K-12 platform has received INR400 crore of capital and management plans eight additional schools, but it currently contributes less than 1% of revenue; the stated ambition for it to exceed test prep is not yet supported by material financial evidence.
Acquisitions could extend the category footprint: management expects to announce two domestic M&As in the next two quarters and typically targets profitable businesses at 8x-12x multiples with earnouts.
Cash provides substantial strategic flexibility, but planned spending on 70 offline centers, K-12, M&A, and AI raises the hurdle for sustaining returns on capital.
Red flags
JEE and NEET enrollment growth has slowed to only 3%-4% in the most penetrated market, increasing dependence on newer, less proven categories and southern expansion.
K-12 is a materially different operating model with school execution and integration risk; management offered no quantified revenue or return milestones for the INR400 crore allocation.
Claims that in-house AI is more accurate than Gemini and GPT and that PW Talk can reach a million-dollar ARR are not accompanied by independent benchmarks, retention data, or meaningful current revenue.
Nine-month PAT was only INR45 crore after INR23 crore of one-time costs, while ESOP expense rose to INR125 crore from INR73 crore, making headline EBITDA less representative of shareholder economics.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Earnings transcripts
Documents
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