PhysicsWallah IPO Opens November 11: ₹3,480 Crore Issue, Price Band ₹103–₹109 — Key Details, Strengths, and Risks

India’s leading edtech firm PhysicsWallah Limited (PW) is set to launch its much-awaited ₹3,480 crore Initial Public Offering (IPO) on November 11, 2025. Known for making quality education affordable, the company aims to expand its hybrid learning model across India and beyond.

📊 IPO Highlights

• Issue Size: ₹3,480 crore (fresh issue + offer for sale of ~32 crore shares)
• Price Band: ₹103–₹109 per share
• Lot Size: 137 shares (minimum investment ₹14,933 at upper band)
• IPO Dates: November 11–13, 2025
• Allotment: November 14 | Listing: November 18 (BSE & NSE)
• Lead Manager: Kotak Mahindra Capital
• Registrar: MUFG Intime India Pvt. Ltd.

🧾 About PhysicsWallah

Founded by Alakh Pandey, PhysicsWallah has grown from a YouTube channel into one of India’s top five education companies by revenue. The platform caters to students preparing for JEE, NEET, UPSC, and government exams through both online and offline channels.

As of July 2025, its main YouTube channel had 13.7 million subscribers, and the company’s digital ecosystem included 206 channels with nearly 99 million subscribers. PW also operates 303 offline centres, supported by 6,200+ faculty members and 5,000+ staff, offering hybrid learning and hostel facilities.

💰 Financial Performance

Metric (₹ crore) FY23 FY24 FY25

Revenue 744.3 1,940.7 2,886.6

Net Profit (84.1) (1,131.1) (243.2)

Total Assets 2,082.2 2,480.7 4,156.4

EBITDA 13.9 (829.3) 193.2

🎯 IPO Objectives

• Capital Expenditure: ₹1,208.7 crore for setting up new offline and hybrid centres and server/cloud infrastructure.
• Subsidiary Investments: ₹75.16 crore into Xylem Learning and Utkarsh Classes.
• Marketing Expansion: ₹710 crore for brand promotion.
• Acquisitions: ₹26.5 crore for additional stake in Utkarsh Classes.
• General Corporate Purposes: Remaining funds for operational needs.

📈 Business Strengths

1. Rapidly Expanding User Base:

PW had 4.46 million paid users in FY25, growing at a 59.19% CAGR over FY23–FY25.

2. Multi-Channel Learning Model:

From digital-first to a robust hybrid system, PW offers 13 education categories via online, offline, and franchise models.

3. Affordable Pricing Edge:

PW’s pricing is significantly lower than competitors — JEE at ₹4,500, NEET at ₹4,800, UPSC at ₹18,000 — versus ₹63,000–₹1.1 lakh elsewhere.

4. Strong Digital Presence:

With 98.8 million YouTube subscribers across 207 channels and 22.85 billion views, PW leads India’s edtech engagement metrics.

5. AI-Powered Learning Tools:

AI-based tools like AI Guru, Smart Doubt Engine, and AI Grader enhance learning efficiency and engagement.

⚠️ Risks and Concerns

1. Loss-Making Business:

PW reported net losses of ₹243 crore in FY25 and ₹127 crore in Q1FY26, with negative net worth and EBITDA in FY24.

2. Regional Concentration:

Offline revenues are heavily skewed toward Delhi NCR, Patna, and Calicut — making the company vulnerable to local disruptions.

3. Category Dependence:

Nearly 72% of online users are enrolled in just four key categories (NEET, JEE, Govt Exams, Foundation), posing concentration risk.

4. Declining Enrolments in Kota:

Students in Kota dropped from 27,158 in FY23 to 11,540 in FY25, indicating saturation in traditional coaching hubs.

🌐 Expansion and Acquisitions

PW has strengthened its offline reach through strategic acquisitions:

Utkarsh Classes (Rajasthan & Uttar Pradesh) – FY23

Xylem Learning (Kerala) – FY24

Knowledge Planet (Middle East) – FY24

📍 Bottom Line

PhysicsWallah’s IPO arrives at a crucial stage as the company transitions from an online-only edtech startup to a pan-India hybrid education powerhouse. While its low-cost model and AI-driven innovation stand out, investors must weigh its loss-making profile and regional dependency before applying.