Target: ₹140
CMP: ₹101.76
Physicswallah (PWL) has mastered an omnichannel education playbook: foster trust and engagement first, monetise later. Its community-led digital funnel — anchored by flagship JEE and NEET courses, expanding vernacular and category depth, and low-barrier entry — now fuels paid online cohorts and a higher-ARPU offline network.
With momentum in engagement, enrolments and centre expansion, we expect a revenue CAGR of 27 per cent and EBITDA CAGR of 84.7 per cent during FY25-28E, with adjusted PAT turning positive in FY27E and rising to ₹6.7 lakh crore by FY28E.
PWL’s low-CAC model turns trust into enrolments and engagement into revenue. Free content draws learners, who upgrade to paid courses, tests, doubt-solving, and tools, bypassing heavy marketing. The flywheel scales robustly: 134 million social followers, 83 million app downloads, about 3.4 million daily active users (DAU), and 4.37 million paid enrolments in 9M-FY26. Engagement metrics guide targeted expansion by city, category, and segment, transforming community reach into scalable revenue.
We initiate on PWL with a Buy rating and a target price of ₹140 once offline utilisation improves and the cash engine funds adjacencies without balance sheet strain.
Key risks: Regulatory changes in coaching may impact pricing and growth; and slower offline utilisation and faculty retention issues may delay margin