Target: ₹125

CMP: ₹108.48

Physicswallah (PWL) is one of India’s leading EdTech players that has disrupted online test prep with a low-cost model (online and hybrid) for content delivery. It enjoys a large addressable online market that is expected to show a 29 per cent CAGR over FY25-30 reaching $6-6.5 billion per Redseer and lucrative online margins (JPMe FY27 30 per cent).

PWL addresses an attractive test prep market in India that is projected to show a 13 per cent CAGR over FY25-30 to $23-25 billion per Redseer. PWL’s asset intensity increase is likely to stabilise as online growth is likely to lead offline growth. Offline centre utilisation increase should drive breakeven over FY27.

While the online business underscores its profitability and cash flow, the offline centres and school businesses provide optionality. We initiate coverage with an Overweight and April 2026 price target of ₹125 . We value PWL as an SOTP with core attraction in its online/hybrid test prep business. We value this at 30x EV/EBITDA. We apply a lower 10x EV/EBITDA multiple to the offline business and don’t ascribe any value to the school business. This business can provide optionality if scale up is better than expected.

Key risks include student/faculty churn, adverse regulation, slowing online growth and any deeper expansion into K-12 schools.

Published on April 22, 2026