PhysicsWallah shares drew attention from investors on Friday, September 4, after the edtech company was bullish about by Motilal Oswal.
The brokerage began coverage on PhysicsWallah with a ‘Buy’ rating and a target price of ₹200 per share, which implies 66% upside from the level cited in its report.
The positive brokerage call triggered buying interest in the stock, with PhysicsWallah shares gaining around 6% in late morning trading.
The stock was at around ₹127.80 and market capitalisation about ₹36,777 crore.
Why Motilal Oswal is bullish on PhysicsWallah
Motilal Oswal highlighted PhysicsWallah’s capital-efficient business model, low customer-acquisition costs and expanding presence across India’s education market.
As a result, the company has developed a strong free-to-paid student funnel through its extensive YouTube presence.
The brokerage estimates that PhysicsWallah has more than 100 million YouTube subscribers to its portfolio, and the company is able to attract students without the need to rely on expensive traditional marketing.
This audience can then be converted into paid users through online, hybrid and offline education.
Motilal Oswal expects the online business to remain the company’s main growth and value driver.
Online revenue will grow by around 28% CAGR between FY26 and FY30 on the back of increased paid users, new education categories and AI-based monetisation opportunities.
Offline expansion adds another growth engine
PhysicsWallah’s offline business has also grown quickly. The company has expanded its number of offline centres from 28 in FY23 to 353 by the end of FY26.
The offline segment will grow organically but not as aggressively as in the expansion phase, the brokerage forecast.
Motilal Oswal believes the maturing network could eventually improve centre utilisation and profitability. It also expects margins to strengthen, with pre-Ind AS EBITDA margins projected to rise from around 26% in FY26 to 30% by FY28.
Key risks for investors
Although Motilal Oswal has a positive outlook, it has outlined some risks. These include more competition in the edtech sector, execution problems in the offline business, faculty attrition and any regulatory changes.
The brokerage’s ₹200 target is based on a sum-of-the-parts valuation, and separate valuations are assigned to PhysicsWallah’s online and offline operations.
Meanwhile, the stock has still been under pressure for much of 2026. PhysicsWallah shares were down about 4.5 percent year-to-date before Friday’s move, compared to an 8.3 percent dip in the Nifty 50.
This brokerage upgrade has brought back the edtech stock. PhysicsWallah is now firmly on investors’ radar thanks to the large digital audience its growing offline presence and emphasis on AI-enabled education.
But the 66% upside is a brokerage prediction, not a guaranteed return, and investors should be aware of the company’s competitive and execution risks before making any investment.
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