PhysicsWallah shares fall 15%; sell-off wipes out Rs 12,000 crore from m-cap in 3 days post listing

This implies a market cap erosion of nearly Rs 12,000 crore in just three sessions since debut.

PhysicsWallah market debut:

PhysicsWallah shares listed with a premium of more than 33 percent over the IPO price at Rs 145 apiece on NSE on November 18. At the end of the debut day, the stock surged further to close at Rs 156.49 apiece, marking a rise of nearly 44 percent from its IPO price.

The stock however lost steam on Day 2. The stock tumbled nearly 11 percent to hit an intraday low of Rs 138.54 apiece, before recovering some losses. At the end of Day 2, the stock closed nearly 8 percent lower at Rs 143.28 apiece.

The stock has now extended losses on Day 3, being down more than 15 percent to trade at Rs 121.22 apiece.

PhysicsWallah share price: Should you buy, sell or hold?

Shivani Nyati, Head of Wealth at Swastika Investmart, had noted that competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks for the firm's growth.

The analyst had advised allotted investors to book partial profits and hold the remaining shares for medium-term growth with a stop loss at Rs 130 apiece.

Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara also advised caution. He noted that at current valuations, the real test is how a business converts millions of free users into paying subscribers while tightening its cost structure. "If PhysicsWallah manages to prove that regional expansion and hybrid models can give steady margins, it earns long-term credibility," he added.

"There is value in the scale it can achieve, but the key headwinds are the presence of players like Unacademy, Byjus, and a hybrid mall, which scales slower than a pure platform play. With a stretched valuation, execution capability to achieve rapid, sustainable growth while retaining top educational talent would be the key if returns are to be made mid to long term," said Shravan Shetty, Managing Director, Primus Partners.

Founded as a YouTube channel in 2016, the company runs online and brick-and-mortar coaching centres, and is one of India's largest edtech firms by the number of students. The firm posted 49 percent revenue growth in FY25, with losses narrowing to Rs 243 crore from Rs 1,131 billion rupees in the previous fiscal.

PhysicsWallah's valuation exceeds that of its unlisted peers such as Temasek-backed upGrad, which was last valued at $2.25 billion and SoftBank-backed Unacademy, valued at $3.44 billion.

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