PhysicsWallah IPO review

 Information about PhysicsWallah’s IPO:

1. Year of Starting Business / Foundation Year

- *2014* (as a YouTube channel); incorporated as a company in *2020*.

2. HQ or Founder State

- *HQ: Noida, Uttar Pradesh*

- Founders: Alakh Pandey and Prateek Maheshwari.

3. Industry of Business

- *EdTech (Online & Offline Education)*

4. Main Verticals of Business / Major Products

- *Online Courses*: Competitive exams (IIT-JEE, NEET, etc.).

- *Offline Centers*: Hybrid learning centers (303 centers in FY25).

- *Digital Content*: Free YouTube tutorials (98.8M subscribers).

- *Books & Test Series*.

5. Revenue Breakdown (FY25)

- *Segment-wise*:

    - Online: ₹2,303 Cr (76% of total revenue).

    - Offline: ₹736 Cr (24% of total revenue).

- *Total Revenue (FY25)*: ₹3,039 Cr.

6. Geographic Breakdown

- *India*: ~100%

- *International*: Minimal presence (Middle East).

7. Major Good Points

- *Strong brand trust* (4.1M paid users, 98.8M YouTube subscribers).

- *No debt*, ₹2,350 Cr cash reserves.

- Rapid growth in offline centers (303 in FY25).

- Experienced promoters.

8. Major Drawbacks

- *High employee costs* (56% of revenue in FY25).

- *Profitability concerns*: ₹243 Cr loss in FY25.

- Intense competition (Unacademy, Byju’s).

- Regulatory risks in education sector.

9. Major Strengths

- *Dominant in exam prep market*.

- Scalable hybrid model.

- Strong digital infrastructure.

10. Major Weaknesses

- *Unproven profitability*.

- High fixed costs for offline expansion.

- Reliance on key educators.

11. Financial Information

Metric FY23 FY24 FY25 Growth

| *Revenue (Cr)* | ₹772.54 | ₹2,015.35 | ₹3,039.09 | +293% |

| *PAT (Cr)* | -₹84.08 | -₹1,131.13 | -₹243.26 | - |

| *PAT Margin* | -10.88% | -56.12% | -8.01% | - |

| *EBITDA (Cr)* | ₹13.86 | -₹829.35 | ₹193.20 | - |

| *EBITDA Margin*| 1.79% | -41.14% | 6.36% | - |

| *Debt (Cr)* | ₹956.15 | ₹1,687.40 | ₹0.33 | -99.9% |

| *D/E Ratio* | 15.35 | -1.96 | 0.0002 | - |

12. Valuation Parameters

- *ROE (FY25)*: *-12.50%*

- *ROCE*: N/A

- *RONW (FY25)*: *-12.50%*

- *EPS (FY25)*: ₹-0.86 → *P/E: N/A*

- *NAV (FY25)*: ₹7.73 → *P/B: 14.10x*

- *Peers (FY25)*:

    - *Unacademy*: P/E ~50, ROE ~20%

    - *No direct listed peers*.

13. Promoter Holding

- *Pre-IPO*: *81.64%*

- *Post-IPO*: *~72%*

- Alakh Pandey & Prateek Boob.

14. Promoter Holding (Last 3 Years)

- Stable at ~80%.

15. IPO Type

- *Fresh Issue (₹3,100 Cr) + OFS (₹380 Cr)*.

16. IPO Size

- *Total: ₹3,480 Cr*

    - *Fresh Issue: 89%*

    - *OFS: 11%*

- Price Band: ₹103–₹109.

- Opens: *Nov 11–13, 2025*.

17. Use of Fresh Issue Money

- *Capital expenditure for offline/hybrid centers*: ₹460.55 Cr

- *Lease payments*: ₹548.31 Cr

- *Marketing*: ₹710 Cr

- *Inorganic growth*: ₹1,073.66 Cr

18. Brokerage Reviews

- *Subscribe*: JM Financial, IIFL.

- *Neutral*: Kotak Mahindra.

- *Concerns*: High valuation, profitability uncertainty.

- *GMP*: ₹5 (4.58% premium).

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