PhysicsWallah Shares Tumble 8%; Rs 8,400 Cr Market Cap Wiped Out In Just 3 Sessions Post Listing

PhysicsWallah Shares

PhysicsWallah shares fell more than 8 percent on November 20, extending steep losses for the second straight session after a strong market debut. In just three trading days since listing, the stock is now down over 9 percent from its debut price.

Despite the correction, the stock remains more than 20 percent above its IPO price of ₹109 per share.

Sharp Market-Cap Erosion

The company’s market capitalization slipped below ₹37,900 crore on Wednesday—well below the nearly ₹46,300 crore peak it hit on listing day. This reflects an erosion of roughly ₹8,400 crore in just three sessions.

Strong Debut, Quick Pullback

PhysicsWallah listed at Rs 145 per share on the NSE on November 18, a premium of over 33 percent to the IPO price. The stock rallied further to close Day 1 at Rs 156.49, up nearly 44 percent from the IPO price.

However, momentum faded quickly.

• Day 2: The stock fell almost 11 percent intraday to Rs 138.54 before recovering some ground to close 8 percent lower at Rs 143.28.
• Day 3: The downtrend continued, with shares slipping over 8 percent to trade at Rs 131.36.

Should You Buy, Sell, or Hold?

Shivani Nyati, Head of Wealth at Swastika Investmart, flagged competitive pressure from both edtech and offline coaching players, regulatory uncertainty in the education sector, and the challenge of maintaining profitability during rapid expansion. She recommended that allotted investors book partial profits while holding the rest for medium-term gains, with a stop-loss at Rs 130.

Siddharth Maurya, Founder & Managing Director at Vibhavangal Anukulakara, also urged caution. He noted that at current valuations, the real test is the company’s ability to convert millions of free users into paying customers while managing costs. “If PhysicsWallah can prove that regional expansion and hybrid models deliver steady margins, it will build long-term credibility,” he said.

Shravan Shetty, Managing Director at Primus Partners, added that while the company’s scale presents value, strong competitors like Unacademy and Byju’s and the slower scalability of hybrid models pose key risks. With valuations stretched, he said execution will be crucial for sustainable long-term returns.

Founded in 2016 as a YouTube channel, PhysicsWallah now operates both online and offline coaching centers and is one of India’s largest edtech platforms by student reach. The company reported 49 per cent revenue growth in FY25, with losses narrowing to Rs 243 crore from Rs 1,131 crore a year earlier.

PhysicsWallah’s current valuation stands above that of unlisted peers such as Temasek-backed upGrad (valued at $2.25 billion) and SoftBank-backed Unacademy (valued at $3.44 billion).