PhysicsWallah IPO: Worth subscribing to?

Summary: PhysicsWallah, a popular learning and test preparation platform, will go public on November 11, 2025. Though it might have become a household name, a lack of strong track record and revenue concentration pose risks to its growth. Let’s analyse its strengths, weaknesses and past financials to assess whether its IPO is worth subscribing to. PhysicsWallah, a platform offering test preparation courses for competitive exams in India, is set to open its IPO (initial public offering) on November 11, 2025 and will close on November 13, 2025. The company aims to raise Rs 3,480 crore, of which Rs 3,100 crore comprises a fresh issue while the remaining Rs 380 crore will be an offer for sale (OFS). We breakdown PhysicsWallah’s business, financials, strengths, risks and valuation to help you make an informed investment decision. What the company does Headquartered in Noida, PhysicsWallah offers affordable test-preparation and upskilling courses through online, offline and hybrid modes. Its two-teacher model combines live digital classes with on-site academic support. With over 13.7 million subscribers on its flagship YouTube channel and a total YouTube community nearing 99 million, it has built one of India’s largest learning ecosystems. The company’s content-first, tech-enabled approach and extensive network of free and paid courses have made it one of India’s top five education firms by revenue and one of the fastest-growing between FY23 and FY25. Track record and valuation Regarding its numbers, PhysicsWallah’s financial performance has largely been disappointing. Between FY23 and FY25, its EBIT (earnings before interest and tax) and net income (profit after tax) remained in the red. Only revenue grew steadily, posting a nearly 97 per cent growth during the same period. At the upper end of the price band (Rs 109), PhysicsWallah’s stock is expected to be valued at 6.8 times its book value. The P/E cannot be calculated since the company incurred losses during FY23-25. There are no listed peers for comparison. PhysicsWallah IPO details Total IPO size (Rs cr) 3,480 Offer for sale (Rs cr) 380 Fresh issue (Rs cr) 3,100 Price band (Rs) 103-109 Subscription dates November 11-13, 2025 Purpose of issue Funding capex, making lease payments and investing in subsidiaries and cloud infrastructure Post-IPO M-cap (Rs cr) 31,170 Net worth (Rs cr) 4,571 Promoter holding (%) 72.3