PhysicsWallah Stock Plummets 8%, ERASES IPO Gains, Nears Issue Price

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AuthorAnanya Iyer|Published at:
PhysicsWallah Stock Plummets 8%, ERASES IPO Gains, Nears Issue Price
Overview

Shares of edtech firm PhysicsWallah Ltd. dropped nearly 8% Tuesday, marking a third consecutive session of decline and bringing losses over three days to 14%. The sell-off has significantly eroded market capitalization to ₹32,257 crore from its listing valuation. Technically, the stock now trades below key short-term moving averages and approaches oversold levels, with its Relative Strength Index (RSI) at 31.7. Despite the downturn, the company is focused on achieving profitability within 12 months and plans aggressive expansion, particularly in Southern India.

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Steep Sell-off Continues

PhysicsWallah Ltd. shares shed nearly 8% on Tuesday, extending a sharp three-day losing streak that has now erased 14% of the stock's value. Trading activity showed approximately 44 lakh shares changing hands by 11 am IST.

Market Cap Erosion

The relentless selling pressure has drastically reduced the edtech firm's market capitalization to ₹32,257 crore. This valuation stands considerably below the nearly ₹45,975 crore it commanded at its market debut on November 18, 2025.

Technical Weakness Mounts

The stock's technical chart presents a bearish picture, trading below its 5, 10, 20, and 30-day moving averages. Analysts are closely watching the Relative Strength Index (RSI), which has fallen to 31.7, nearing the 30-point threshold that typically signals oversold conditions.

Company Focus on Profitability and Growth

Despite the market's repricing of its stock, PhysicsWallah remains committed to its strategic objectives. Co-founder Prateek Maheshwari reiterated the company's aim to achieve profitability within the next fiscal year. Post-listing, expansion plans are set to accelerate, with a particular emphasis on strengthening its footprint in Southern India and catering to 11 regional languages. The company is also diversifying into multiple new exam categories.

Revenue Mix and Outlook

Currently, PhysicsWallah derives 52% of its revenue from its online offerings, with offline centers contributing the remainder. This mix is expected to remain stable, as both segments are projected for continued healthy growth. Revenues saw an increase of over 40% in FY24-25, and the company anticipates sustained growth exceeding 30% in the coming years, ruling out inorganic expansion for now.

IPO Performance Reversal

PhysicsWallah had initially made a robust market debut, delivering listing gains of 36%. It listed at ₹145 on the NSE and ₹143.10 on the BSE, significantly above its IPO issue price of ₹109. The ₹3,480 crore initial public offering saw strong demand, subscribed nearly two times overall.

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Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.