Shares of edtech firm PhysicsWallah jumped as much as 9.5% on Tuesday, reaching an intraday high of ₹128.35 on the Bombay Stock Exchange. The increase followed upgrades from JPMorgan and JM Financial after the company released its first-quarter results for fiscal year 2027.
By mid-morning, the stock had trimmed some gains, trading 5.6% higher at ₹123.85. Its market value stood at roughly ₹35,884 crore, or about $3.7 billion.
Brokerages raise ratings after Q1 results
JPMorgan raised PhysicsWallah to “Overweight” from “Neutral,” maintaining its target price at ₹148. That figure suggests a potential upside of over 26% from the stock’s previous closing price of ₹117.20.
The brokerage said the company’s Q1 performance exceeded expectations despite disruptions from the NEET exam cycle. It also highlighted PhysicsWallah’s decision to retain its guidance of around 30% revenue growth for FY27 and divest its NBFC arm, FinZ Finance, to sharpen its focus on the core education business.
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JM Financial upgraded the stock to “Buy” from “Add,” keeping its June 2027 target price at ₹140—nearly 20% above the previous close. The firm said the company delivered a decent quarter despite the NEET-related disruption and that its underlying business fundamentals remained intact. It added that the stock’s correction of more than 20% from its recent highs had made its risk-reward profile more favourable.
Revenue crosses ₹1,000 crore, losses shrink
PhysicsWallah posted operating revenue of ₹1,054 crore for Q1 FY27, a 24.4% rise from ₹847.1 crore in the same period last year. Revenue also climbed 14.7% sequentially from ₹918.8 crore in Q4 FY26.
The net loss decreased 30.5% year-over-year to ₹88.3 crore, though it widened 27.8% from the prior quarter. Total expenses increased 18% year-over-year to ₹1,247 crore.
Earnings before interest, taxes, depreciation, and amortization turned positive at ₹52 crore, compared with a loss of ₹21 crore in Q1 FY26. The margin improved to 4.9% from a negative 2.5%. Adjusted EBITDA rose more than fivefold to ₹135 crore, with the margin expanding to 12.9% from 3.1%.
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Online revenue grew 33% year-over-year to ₹549 crore, driven by a 2.4% increase in online users to 2.15 million. The average collection per user went up 9.7% to ₹4,311. Revenue from the K-12 and early-learning segment jumped 88% to ₹105 crore, with enrollments rising 41% to 780,000.
The NEET UG postponement disrupted the usual admission cycle, causing a 28% drop in online NEET collections during the quarter. Collections later rebounded 51% year-over-year between July 1 and August 13 after results were announced.
Profitability target set for Q3 FY27
Co-founder Prateek Maheshwari said the company expects to reach group-level profit after tax in the third quarter of FY27. “We are confident we will achieve net-level PAT profitability in Q3,” he stated, noting that the third quarter is typically the strongest period.
The results included an exceptional impact of around ₹42 crore from the fair-value remeasurement of financial instruments tied to Sarrthi IAS. In July, PhysicsWallah bought an additional 11% stake in the UPSC coaching institute for ₹71.81 crore, raising its holding to 51%.
