PhysicsWallah Q2 profit doubles; Motilal keeps ₹200 target

PhysicsWallah shares ended Thursday’s session 3.76 per cent higher at ₹132.20 after the edtech company reported a consolidated net profit of ₹143.63 crore for the quarter ended September 30, 2026, more than double the ₹70 crore posted a year earlier, according to BusinessLine. The stock had risen to ₹140.25 from its previous close of ₹127.41 on the NSE.

Consolidated revenue from operations grew about 18 per cent year-on-year to ₹1,242.26 crore, from ₹1,051.24 crore in the September 2025 quarter, Mint reported. Online revenue rose 26.4 per cent to ₹694 crore and offline revenue climbed 9 per cent to ₹541 crore.

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Key facts

• Q2 net profit: ₹143.63 crore, against ₹70 crore a year earlier; revenue ₹1,242.26 crore, up roughly 18 per cent.
• NEET enrolments grew more than 30 per cent in the quarter as demand deferred by the postponement of the NEET UG examination came through.
• 56 centres opened in H1 FY27, versus 128 in H1 FY26, with plans for about 25–30 a year over the next two years (Mint).
• Motilal Oswal reiterated Buy with a ₹200 target price; PL Capital retained Accumulate with a SoTP-based target of ₹140.
• Founder and CEO Alakh Pandey said the company delivered record revenue and a sharp improvement in profitability.

Centres, margins and the two reports

PhysicsWallah has deliberately slowed centre openings relative to the commitment it made at its IPO, choosing to lift academic performance and operating economics at existing sites. Pandey said the learner base kept widening across K-12, vernacular and new categories, with a focus on affordable, technology-led education and disciplined capital allocation.

The two reports differ on several details. BusinessLine put the day’s closing gain at 3.76 per cent to ₹132.20, while Mint described a 10 per cent surge and cited a current market price of ₹127. BusinessLine specified online revenue of ₹694 crore and offline revenue of ₹541 crore; Mint gave ₹690 crore and ₹540 crore respectively, and noted Motilal Oswal’s higher estimates of 23.2 per cent and 20.8 per cent growth for the two channels. BusinessLine also headlined a 51 per cent upside to the ₹200 target, while Mint cited a 57 per cent figure.

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Motilal Oswal’s sum-of-the-parts valuation assigns 50 times FY28E EV/EBITDA to the online business and 15 times to the offline business. It expects ₹21.6 billion in pre-Ind AS EBITDA by FY30 on a 25–30 per cent revenue CAGR, with mature categories already near 50 per cent EBITDA margins. PL Capital trimmed its pre-Ind AS EBITDA estimates by 2 per cent and 3 per cent for FY28E and FY29E on revised offline assumptions, but said the full-year revenue growth guidance of about 30 per cent holds.

Why it matters

The results show PhysicsWallah leaning on its online arm for profit while its physical network costs weigh on the offline segment, which Mint reported swung to a pre-Ind AS EBITDA loss under brokerage estimates. For investors, the quarter is the first clear read on whether the company can grow margins without the centre-opening pace promised at listing. Gaurav Arora of SAHI cautioned that test-preparation firms typically book more new enrolments in the first half, making the pace harder to repeat, and noted the stock trades at over 240 times trailing earnings.

What to watch

The next test is H2 FY27, when Motilal Oswal expects revenue and EBITDA growth of 23 per cent and 82 per cent respectively. Traders will also watch ₹150, which Arora flagged as the level a sustained close must clear to confirm a breakout rather than a results-driven bounce. This is not financial advice, and equity markets are volatile and uncertain.

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Sources: BusinessLine, Mint