Why is PhysicsWallah Share Falling? 

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PhysicsWallah shares are listed at a premium of more than 33% over the IPO price of ₹145 on the NSE on 18th November. At the end of the debut day, the stock surged further to close at ₹156.49, up nearly 44% from its IPO price. The shares of PhysicsWallah dropped more than 15% on 20th November, extending significant losses for the second consecutive session after a strong market debut. The stock is currently down over 16% from its listing price in just three sessions since its debut. Despite the sharp losses, the stock is still more than 11% higher than the IPO price of ₹109. 

Share Market Cap Erosion: The company’s market slipped below ₹35,000 crores, compared to nearly ₹46,300 crores at its peak on the debut day. This marks an erosion of about ₹12,000 crores in just three sessions. The sharp correction comes amid profit-booking and high volatility following the listing.  

As per the recent price movements of PhysicsWallah, the share price has declined by approximately 16.32% over the past month, and the lowest share price is ₹128.00. The highest price on PhysicsWallah is ₹131.25.  This article examines the primary reasons behind these movements and provides a comprehensive overview of the decline in the cost of PhysicsWallah shares. Despite this, the company maintains strong long-term fundamentals, as evidenced by an average Return on Equity (ROE) of 00.00% and healthy growth rates in net sales and operating profit.

Key Reasons Behind the PhysicsWallah Share Price Fall

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There are several reasons behind the PhysicsWallah share price fall, such as post-IPO Profit Booking, Market Volatility & Short-term sentiment, valuation concerns after a strong rally, profitability & Business model risks, and competitive pressures. 

• Post-IPO Profit Booking & Correction: Investors have begun booking profits after an impressive debut, when shares listed significantly above the IPO price, creating selling pressure in the days following the listing. This made a negative impact by initially surging the price and then pulling back once it had observed gains. 
• Market Volatility & Short-Term Sentiment: Market movements and volatility in newly listed stocks may affect share prices even when the underlying business performance looks powerful, and PhysicsWallah saw drops of 4-8% during individual sessions due to sentiment.   
• Valuation Concerns After Strong Rally: Analysts and some investors have reviewed the company’s valuation, which has expanded quickly relative to fundamentals, so the high expenses and ongoing losses may trigger caution. An early sharp rise has left the stock vulnerable to a correction, and the long-term story remains intact.    
• Profitability & Business Model Risks: While revenue has grown, PhysicsWallah has historically reported net losses and high operating expenses, and profitability remains an investor concern. Heavy investments in offline centres and technology have increased costs, which can pressure earnings. 
• Competitive Pressures: The broader edtech category remains under scrutiny following issues at peer companies, prompting investors to be cautious about valuations in this space. So, intense competition from other coaching brands, by both online and traditional offline players. 

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PhysicsWallah: An Overview

PhysicsWallah Limited is an Indian educational technology company that Alakh Pandey started as a YouTube channel in 2016, aimed at teaching the physics curriculum for the JEE, NEET, and BCSE board examinations. As the channel gained more viewership, Pandey also started posting chemistry content. In 2020, Panday, along with his co-founder Prateek Maheshwari, established Physics Wallah. PhysicsWallah became a unicorn company in 2022, and the company is valued at around $2.8 billion. PhysicsWallah confidently filed draft papers for a $530 million initial public offering (IPO) in March 2025. By November 2023, PhysicsWallah had expanded to 67 offline centres in 34 cities across India. However, in the same month, PhysicsWallah laid off 150 employees, representing 0.8% of its workforce, citing performance-related reasons. 

PhysicsWallah Share Price: Should You Buy, Sell or Hold

Some analysts had noted that competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks for the firm’s growth. The analysts had advised allotted investors to book partial profits and hold the remaining shares for medium-term growth with a stop loss at ₹130. There is value in the scale it can achieve, but the key fluctuations are the presence of players like Unacademy, Byju’s, and a hybrid mall, which scales more slowly. With a stretched valuation, the ability to execute and achieve rapid, sustainable growth while retaining top educational talent would be key to delivering mid- to long-term returns.    

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How have PhysicsWallah Shares Performed Recently?

The early trade action clearly captured the market’s sentiment. PhysicsWallah’s share price over the 5 days is -3.24%, and over the one month it drops to -15.94%. The PhysicsWallah share price in the past 1-year returned is 0. The PhysicsWallah share hits a 1-year low of ₹121.22 and a 1-year high of ₹161.99. The 52-week high and low of PhysicsWallah’s share price are ₹161.99 and ₹122.22 as of now. As per the past quarterly data from June 24, Sep 24, June 25, and Sep 25, the numbers are 635.2, 832.17, 847.09, and 1051.24. Based on the moving averages, PhysicsWallah is trading below the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.  

PhysicsWallah Share Price Target

According to some analysts, share price targets vary, with short-term forecasts observing a potential support around ₹121-125 and resistance near ₹138-149. At the same time, some recommend holding for medium-term growth, noting a strong brand and a hybrid model, while preserving competition and expansion risks. Some targets are not universally fixed, but recent trading shows prices around ₹130-₹139, with long-term potential by scaling presence. This also shows the downturn in the PhysicsWallah share price in a negative light, overlooking past performance in some previous years.            

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What is the Right Time to Buy PhysicsWallah Shares?

According to analysts, the PhysicsWallah share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in PhysicsWallah. There are some factors to consider before investing in PhysicsWallah Company shares.

• Strong Fundamentals: Investors should review the PhysicsWallah Company’s fundamentals before making an investment. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Education Sector: The company is well-positioned in the education sector to deliver benefits to PhysicsWallah. This dominant sector increases demand and prices for the PhysicsWallah Company.
• Highly Volatile: Prices are highly volatile, so price changes significantly impact PhysicsWallah Company’s stock price. Investors must review the market structure before investing in PhysicsWallah shares.  

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Conclusion

PhysicsWallah’s latest quarterly update brought together strong revenue growth, higher profitability, and improved free cash flow, with a financial mix that influences market mood. The sharp reversal reflects a broader reassessment of valuations following an IPO that creates modest demand, with subscriptions of just around 1.8 times. The limited oversubscription left the stock more vulnerable once the initial trading enthusiasm eased and profit-taking set in. In the span of five trading days, the company’s market value has contracted by nearly ₹10,000 crores, which provides growth-oriented businesses can be shifts in sentiment and liquidity. Some analysts had noted that competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks for the firm’s growth.

FAQs

What are the key reasons of investing in the PhysicsWallah shares?

Ans. There are several reasons behind the PhysicsWallah share price fall, such as post-IPO Profit Booking, Market Volatility & Short-term sentiment, valuation concerns after a strong rally, profitability & Business model risks, and competitive pressures. Market movements and volatility in newly listed stocks may affect share prices even when the underlying business performance looks powerful, and PhysicsWallah saw drops of 4-8% during individual sessions due to sentiment.   

What are the PhysicsWallah share price target?

Ans. According to some analysts, share price targets vary, with short-term forecasts observing a potential support around ₹121-125 and resistance near ₹138-149. At the same time, some recommend holding for medium-term growth, noting a strong brand and a hybrid model, while preserving competition and expansion risks. This also shows the downturn in the PhysicsWallah share price in a negative light, overlooking past performance in some previous years.   

What are the factors that affects the PhysicsWallah shares?

Ans.  According to analysts, the PhysicsWallah share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in PhysicsWallah. There are some factors to consider before investing in PhysicsWallah Company shares.  Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers. 

Is PhysicsWallah a good share to buy?

Ans. Some analysts had noted that competition from other edtech and offline coaching giants, regulatory uncertainties in the education sector, and the challenge of sustaining profitability during expansion remain key risks for the firm’s growth. The analysts had advised allotted investors to book partial profits and hold the remaining shares for medium-term growth with a stop loss at ₹130. With a stretched valuation, the ability to execute and achieve rapid, sustainable growth while retaining top educational talent would be key to delivering mid- to long-term returns.  

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