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Key Highlights

* Company background: Physics Wallah, founded by Alakh Pandey on June 6, 2020, and incorporated in Prayagraj, Uttar Pradesh, is among India’s top five edtech companies, offering affordable online, offline, and hybrid learning across 13 categories, including JEE, NEET, UPSC, K-12, and skill development. With 98.8 million YouTube subscribers as of June 30, 2025, 303 offline centers, and 6,267 faculty, it leverages AI-driven tools like “AI Guru” and “AI NCERT” to enhance learning outcomes, accessibility, and student engagement through technology-led and community-driven education models.

* Market opportunity: The education sector in India is positioned for substantial growth, driven by increasing government funding, digital transformation, and policy reforms such as NEP 2020. Despite facing challenges like high dropout rates, a low Gross Enrollment Ratio (GER), and rural infrastructure deficiencies, there are opportunities to improve access to affordable, quality education through hybrid and technology-enhanced models. The education market, projected to be worth Rs.15-16 trillion in FY25, is expected to grow at around 10% CAGR, reaching Rs.24-26 trillion by FY30, with demand led by Tier-II cities and beyond. Online education, which is growing at an estimated 26% CAGR, is changing the landscape of accessibility, affordability, and inclusivity through personalized and vernacular learning platforms.

* Key strengths: One of the primary strengths of Physics Wallah is its strong brand presence, along with being home to India’s largest online student community, which includes 4.46 million paid users in FY25 (representing a 59% CAGR from FY23) and 98.8 million YouTube subscribers across 207 channels. The affordable courses for JEE, NEET, and UPSC make quality education more accessible, while its technology-driven and engaging pedagogical approach ensures personalized learning for 2.7 million daily active users. Additionally, it is supported by free content, a 4.6-rated application, and social initiatives like the PW Foundation’s “Utthan” program, effectively merging scale, innovation, and social impact.

* Key strategies: Physics Wallah’s key strategies revolve around enhancing student engagement through technology-driven, affordable, and interactive tools like AI NCERT and personalized study plans. The company aims to expand across K-12, test preparation, and skill development segments while strengthening its regional presence with multilingual content. It is also scaling its offline and hybrid centers, optimizing batch sizes, and introducing value-added and fintech services to improve efficiency, drive profitability, and ensure sustainable long-term growth in India’s evolving education ecosystem.

* Financials: In FY25, Physics Wallah (PW) achieved strong financial growth, with revenue up 49% YoY to Rs.2,886.6 crore, driven by hybrid learning and offline expansion. The paid user base rose to 4.46 million, growing at a 59% CAGR from FY23 to FY25. PW narrowed its net loss to Rs.243 crore from Rs.1,131 crore in FY24 and achieved a positive EBITDA margin of 6.7%, a major turnaround from (42.7%) the previous year, while continuing reinvestments for sustainable scaling.

* Valuation: Physics Wallah (PW) posted strong FY25 revenue of Rs.2,886.6 crore, driven by rapid growth in hybrid learning and paid-user expansion. However, with an estimated valuation of Rs.31,500 crore and a high P/S ratio of 10.7x, valuations remain steep. Despite improving margins and strong brand momentum, continued investments may limit near term profitability, leading to a Neutral outlook.

* Key risks: Physics Wallah faces risks from intense competition from large edtechs and offline institutes, rising customer acquisition and content costs, regulatory changes, reliance on digital platforms, and the challenge of maintaining growth while ensuring quality and engagement in both online and offline offering

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