PhysicsWallah shares drop 8%, extend losses back towards IPO price

Shares of edtech platform PhysicsWallah Ltd. fell nearly 8% on Tuesday, January 20, extending losses for a third straight session. The stock has declined 14% over the past three trading days.

As of 11 am IST, around 44 lakh shares had changed hands. The sharp sell-off has dragged the company's market capitalisation down to ₹32,257 crore, lower than the nearly ₹45,975 crore valuation at the time of its listing on November 18, 2025.

With the latest decline, the stock is trading below all key short-term moving averages, including the 5-day, 10-day, 20-day and 30-day averages.

On technical charts, the stock is approaching oversold levels, with the Relative Strength Index at 31.7. An RSI reading below 30 typically indicates oversold conditions.

The company remains focused on improving profitability. Co-founder and whole-time director Prateek Maheshwari had earlier told CNBC-TV18 that PhysicsWallah aims to turn profitable within the next 12 months.

Following its market debut, the company plans to accelerate expansion, with a focus on southern India, strengthening its presence across 11 Indic languages and expanding into multiple exam categories.

Maheshwari said nearly 52% of the company's revenue currently comes from its online business, with the rest contributed by offline centres.

He added that this revenue mix is expected to remain broadly stable, as both segments continue to grow at a healthy pace. Revenues rose over 40% in FY24-25, and the company expects growth of over 30% in the coming years, with no plans for inorganic expansion at present.

PhysicsWallah made a strong debut on the bourses, delivering listing gains of 36% when it listed at ₹145 on the NSE and ₹143.10 on the BSE, compared with an issue price of ₹109.

The company's ₹3,480 crore IPO was subscribed nearly two times during the November 11-13 window, with retail investors subscribing 106%, non-institutional investors 48% and qualified institutional buyers 2.7 times their allotted quota.

Founded in 2016 by Alakh Pandey, who began by uploading free physics lessons on YouTube, PhysicsWallah gained prominence during the pandemic.

The company currently operates 303 offline centres across 152 cities in India and the Middle East.

Shares of PhysicsWallah were last trading 7.02% lower at ₹112.78, edging closer to the IPO price of ₹109 per share.