Prime Highlights-
- PhysicsWallah shares rally 9 per cent as revenue climbs 24 per cent year on year to Rs 1,053.95 crore.
- JM Financial upgrades the stock to Buy with a target price of Rs 140, citing improving fundamentals.
Key Facts-
- Revenue growth is led by strong traction across online and offline learning segments.
- Management guides for FY27 revenue growth of around 30 per cent and eyes group-level profitability by Q3 FY27.
Background-
Shares of edtech firm PhysicsWallah rose as much as 9 per cent in morning trade after the company posted strong revenue growth for the June quarter.
Consolidated revenue climbed 24.4 per cent year on year to Rs 1,053.95 crore, compared with Rs 847.09 crore a year earlier, driven by growth across the online and offline learning segments. The stock opened lower at Rs 114.65 before rising to an intraday high of Rs 128.37, later trading at Rs 126.60 on the NSE.
The company’s bottom line also showed marked improvement, with the net loss narrowing to Rs 77.57 crore from Rs 120.45 crore a year earlier. Revenue rose 14.7 per cent sequentially as well.
The online coaching and book sales division brought in Rs 548.79 crore, while the offline segment, covering classroom coaching and hostels, added Rs 489.90 crore.
Ebitda performance improved too, with the deficit narrowing to Rs 44.2 crore from Rs 88.7 crore, aided by lower employee costs.
JM Financial upgraded the stock to Buy from Add, citing intact business fundamentals and a favourable risk-reward after the recent correction, with a target price of Rs 140. The brokerage said online learning remains the key growth driver, led by strong traction in K-12, vernacular and newer categories.
Management maintained its FY27 revenue growth guidance of around 30 per cent and announced the divestment of FinZ to ease capital allocation concerns.
Co-founder Prateek Maheshwari said the company expects group-level profitability by the third quarter of FY27.
