Why Did PhysicsWallah Shares Fall by 6% Today?

Synopsis: Shares fell around 6% after 71.7 million shares, nearly 3% equity, became eligible for trading post lock-in expiry. Despite strong user growth to 4.37 million and a treasury of ₹50,544 million, increased free float weighed on sentiment.

The shares of the leading Indian edtech company plummeted 6 percent in today’s trading session after the company’s 71.7 million shares were freed for trading as the lock-in ended today. 

With a market capitalisation of Rs 29,168.86 crore, the shares of Physicswallah Ltd were trading at Rs 102.00 per share, decreasing around 5 percent as compared to the previous closing price of Rs 107.30 apiece.

Lock In

The shares of Physicswallah have seen bearish movement following the end of a three-month shareholder lock-in period. Around 71.7 million shares, representing nearly 3% of total equity, which is worth Rs 766.83 crore, have now become eligible for trading. However, this does not necessarily indicate immediate selling, but the increased free float may impact short-term price volatility.

PhysicsWallah made a strong market debut, listing at  Rs 145 against an issue price of  Rs 109, delivering a 33% gain. The IPO, sized at  Rs 3,480 crore, had a price band of  Rs 103–Rs 109 with a lot size of 137 shares. The minimum investment stood at  Rs 14,111, reflecting solid investor participation.

Financials

The company reported robust Q3FY26 growth, with revenue rising 34% from  Rs 810 crore to  Rs 1,082 crore year-on-year. Net profit increased 32% from  Rs 77 crore to  Rs 102 crore. The strong double-digit expansion in both topline and bottom line highlights improved operating performance and sustained business momentum during the quarter.

The company posted 31% YoY revenue growth in 9M FY26, largely driven by expansion in its paid user base from 3.60 million to 4.37 million. Online paid users rose to 3.96 million, while offline enrolments increased to 0.41 million. With just ~2% penetration in India’s online education market, significant long-term growth potential remains.

Further, the company demonstrated strong capital efficiency with an operating cash flow of ₹6,429 million in 9M FY26, surpassing ₹5,069 million for FY25. Treasury stood at ₹50,544 million. Centre count expanded to 318 from 186 last year. Online users reached 3.96 million, offline enrolments 0.41 million, supported by 6,807 faculties and 134+ million social media subscribers.

PhysicsWallah is one of India’s fastest-growing edtech platforms, offering affordable online and offline learning solutions for competitive exams and school education. Founded by Alakh Pandey, the company has built a strong student community through quality content, technology-driven delivery, and an expanding network of physical learning centres across the country.

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