surged over 5 per cent in early trade on Friday after the edtech company reported a sharp narrowing in quarterly losses and strong revenue growth, with brokerages highlighting improving profitability, operating leverage and sustained momentum across online and offline segments.
The stock rose 5.3 per cent in early trade and traded at ₹115.64 at 10.45 am after hitting a high of ₹117.95 against the previous close of ₹111.90.
Physicswallah on Wednesday, after market hours, reported a standalone net loss of ₹131.76 crore for Q4 FY26, compared with a loss of ₹314.18 crore in the corresponding quarter last year, reflecting a significant improvement on a y-o-y basis.
Brokerages remained largely constructive on the stock, citing strong revenue growth, improving margins and continued traction in the company’s online education business.
Goldman Sachs maintained a neutral rating and raised its target price to ₹133 from ₹130. The brokerage said Q4 revenue growth accelerated 51 per cent y-o-y, beating estimates, while EBITDA margin also came ahead of expectations due to operating leverage.
The brokerage noted that Physicswallah clarified that the online segment would remain its primary focus area and management does not expect material investments into the K-12 segment, which Goldman Sachs said could ease investor concerns around capital allocation.
However, Goldman Sachs cautioned that limited visibility on the company’s NBFC arm strategy could weigh on valuation multiples. The brokerage raised its revenue and EBITDA estimates by up to 7 per cent and 10 per cent, respectively.
Meanwhile, HSBC initiated coverage with a buy rating and target price of ₹135, highlighting that offline expansion and premiumisation in the online business were driving growth. The brokerage said total revenue growth of 51 per cent y-o-y was supported by offline expansion and rising premiumisation in online offerings.
HSBC added that long-term value creation would depend on successful execution of the offline business strategy and deeper K-12 online penetration. It forecasts EBITDA CAGR of 60 per cent over FY26-30.
Among domestic brokerages, JM Financial said Physicswallah reported a healthy operating performance in Q4FY26, with consolidated revenue growing 51 per cent y-o-y. The brokerage said online and offline segments expanded 43.7 per cent and 53.9 per cent, respectively, while profitability improved sharply as pre-Ind AS EBITDA turned positive at ₹93 million against a loss of ₹1.4 billion in the year-ago quarter.
JM Financial said online remained the company’s key strategic focus area, supported by AI-led personalised learning initiatives, asset-light K-12 expansion and selective online-first acquisitions.
Management expects the offline segment to maintain solid growth momentum and turn pre-Ind AS EBITDA break-even in FY27E, although JM Financial believes break-even may happen only in FY28E.
The brokerage said Physicswallah expects revenue to grow 30 per cent in FY27E with a doubling of pre-Ind AS EBITDA. However, JM Financial downgraded the stock to add from buy, citing limited near-term upside after the stock rallied more than 25 per cent since March 2026 and concerns around the company’s decision to infuse ₹120 crore into a wholly-owned NBFC subsidiary for education loans. The brokerage marginally raised its March 2027 target price to ₹125 from ₹120.