PhysicsWallah’s stock edged up 0.84% to ₹132.20 on the NSE, but Kotak Institutional Equities cut its coverage to a ‘Reduce’ rating and set a ₹125 target—down 5.4% from Tuesday’s close—
Kotak’s note highlighted the platform’s dominance in the JEE and NEET prep space, projecting a 22% share of the 2.9 million JEE aspirants and a 25% share of the 4.1 million NEET aspirants in FY2026. The brokerage also flagged a rapid push into board and foundation segments as a key growth lever.
Revenue projections see the online arm expanding at 30% CAGR and the offline arm at 22% between FY2026 and FY2029. Kotak expects margin expansion in both streams, with the offline business breakeven slated for FY2028, potentially driving a 67% CAGR in adjusted EBITDA over the same period.
Analyst sentiment is mixed: out of 11 covering analysts, 8 maintain a ‘Buy’ rating, 1 a ‘Hold’, and 2 a ‘Sell’. Kotak’s downgrade stands out against the prevailing bullish tone in the market.
Looking ahead, the company will announce FY2026 results mid‑December, with investors watching for margin traction and the impact of the new target price on near‑term liquidity. The ‘Reduce’ call may ripple through the ed‑tech sector as investors recalibrate expectations for growth versus profitability.