Brokerage firm Prabhudas Lilladher has maintained an 'Accumulate' rating on Physicswallah, setting a target price of Rs 141. The outlook follows the company's strong Q2 FY27 results, where revenue rose 18.2% year-on-year. Investors are currently watching the firm's offline expansion strategy alongside recent updates regarding its IPO fund utilization.
Prabhudas Lilladher has maintained its 'Accumulate' rating on Physicswallah, keeping a target price of Rs 141 for the stock. This move follows the company's latest quarterly earnings announcement, which showed growth in both revenue and profitability. As of early November 2026, the stock has been trading in the range of Rs 132 to Rs 133, reflecting market interest following the company's second-quarter performance.
In its Q2 FY27 results released earlier this week, Physicswallah reported revenue of Rs 1,242.26 crore, marking an 18.2% increase compared to the same period last year. The company’s consolidated net profit also saw a significant jump, rising to Rs 143.63 crore from Rs 70 crore in the previous year. This growth highlights the firm's ability to scale its operations while managing costs, with brokerage analysts pointing to a 25% revenue compound annual growth rate (CAGR) expected through FY29.
Strategic Growth and Market Position
The brokerage's optimism is driven by Physicswallah's ongoing expansion into new educational verticals, such as K-12 learning, professional upskilling, and offline centers. By building a hybrid model that combines online content with physical classrooms, the company aims to capture a larger share of the education market. Analysts view this aggressive growth strategy as a key driver for future earnings, though they note that success depends heavily on the company's ability to execute its expansion plans without significant cost overruns.
Monitoring Fund Utilization
While the growth outlook remains a focus, investors are also paying attention to regulatory and compliance updates. Recently, CARE Ratings flagged a deviation of Rs 71.74 crore regarding the utilization of proceeds from the company's initial public offering. The company has clarified that this issue has been rectified as of October 30, 2026. Maintaining transparency in fund allocation and capital spending remains a critical area for shareholders to track, as it directly impacts corporate governance and trust.
Looking ahead, the primary monitorables for investors will be the company’s ability to stabilize its NEET segment, which has recently faced minor pressure due to changes in admission cycles. Furthermore, the effectiveness of the current offline expansion and the company's success in managing its operational costs will determine if the firm can meet its long-term financial targets. The market will likely continue to react to how quickly the company can scale its new initiatives while maintaining profit margins.