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PhysicsWallah shares surged 10% after reporting a 100% year-on-year increase in Q2 FY27 net profit to ₹143.63 crore, with revenue growing 18% to ₹1,242.26 crore. Motilal Oswal retained its Buy rating with a ₹200 target price, signaling confidence in the edtech firm's growth trajectory.
PhysicsWallah's Q2 FY27 results showed net profit jumping to ₹143.63 crore, up 100% from the prior year, while revenue expanded 18% to ₹1,242.26 crore. Online business revenue rose 26.4% to ₹694 crore, outpacing offline operations revenue growth of 9% to ₹541 crore. The company's consolidated adjusted PAT hit ₹150 crore, a 114% increase from the same period last year. Motilal Oswal's ₹200 target price implies a 57% upside from the current ₹127 share price, reflecting optimism about long-term margins.
The moderated centre expansion strategy, which saw PhysicsWallah open 56 centres in H1 FY27 compared to 128 in H1 FY26, may limit short-term growth but signals focus on operational efficiency. First-half FY27 revenue grew 21% year-on-year, with EBITDA rising 94% to ₹206 crore. Analysts note the first-half enrollment spikes could face sustainability challenges, though the online segment's strong performance offers growth potential.
While the results highlight effective cost management and scalability, risks remain. The offline segment posted a 1.5% negative margin, and the stock's 240x trailing earnings valuation may pressure investors for consistent margin improvements. Opportunities include expanding the online business and opening 25–30 new centres annually over the next two years. The hyper-local academic strategy at existing centres also strengthens competitive positioning.
Uncertainties persist about sustaining growth momentum beyond the first half of FY27. Analysts will monitor the ₹150 resistance level for signs of sustained price momentum, with Motilal Oswal forecasting 23% revenue growth and 82% EBITDA growth in the second half of FY27.
PhysicsWallah plans to open 25–30 centres annually in the next two years. Motilal Oswal expects 23% revenue growth and 82% EBITDA growth in the second half of FY27. Analysts will monitor the ₹150 resistance level for sustained price momentum.
PhysicsWallah's Q2 results demonstrate robust financial performance, but sustaining growth will depend on its ability to maintain margins and expand effectively. The key uncertainty is whether the first-half enrollment surge can translate into long-term profitability.
Topics: EdTech, Stock Market, Financial Results, Online Education, Brokerage Analysis, Revenue Growth, EBITDA, Investment Strategy, Academic Performance, Business Expansion
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Source: LiveMint
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