Physics wallah Share Price Tanks within a Week: What’s Behind the Slide & Should Investors Watch or Walk Away?

By Chandan Yadav Nov 27, 2025 0

1. What happened: A quick recap of PW’s listing and first week

physics wallah share price went public in November 2025. Its IPO price band was ₹103 to ₹109 per share. The Economic Times+2India Today+2
On listing day (18 November 2025), shares opened at around ₹145 on NSE (and ~₹143.10 on BSE). The Indian Express+3The Economic Times+3Business Standard+3
The stock soared further intraday to as high as ₹161.99 (some sources say ~₹162.05) before settling. Hindustan Times+2Hindustan Times+2
That jump represented a nearly 44 % gain over the IPO price for early investors. TechCrunch+2Yahoo Finance+2

But the euphoria was short-lived. Over the subsequent days:

Just a few sessions after listing, shares began falling sharply. By 20 November 2025, there was a report of a large-scale drop — in a single day, the stock dipped over 11% intraday. Financial Express+2Republic World+2
The decline continued — as of late November, the share price is trading around ₹129–₹131 on NSE/BSE (for example one screenshot shows ₹131.89) with a 52-week high of ~₹162 and low ~₹121. Angel One+2The Economic Times+2
Over the first week, this amounts to a drop of 8–10% (or slightly more) from the listing peak, erasing a significant portion of the initial gains. Groww+2The Economic Times+2

Because of this correction:

The company lost a large chunk of its market capitalization: some estimates speak of roughly ₹8,600 crore wiped out since the listing peak. The Economic Times+2The Economic Times+2
Many investors who bought at or near listing — expecting sustained growth — may now be facing losses or at least weaker-than-expected returns.

3. Why is PW falling? Key Reasons & What Analysts Are Saying

Based on recent media reports, company data, and market commentary — here are some major factors contributing to the downfall:

▸ Profit-booking after listing pop

Many investors who got quick gains may have booked profits once the stock touched its intraday highs. This is common after strong IPO pop — sudden selling pressure drives downward spiral. Financial Express+2Moneycontrol+2

▸ Over-valuation concerns & high expectations

Although PW commanded strong revenue growth in recent years, its profitability remains fragile. According to filings: while revenues rose significantly (from earlier years to FY25), the company still had net losses. Business Today+2Screener+2
When a company with such risk profile lists at a high valuation (given the initial surge), the margin for error is thin — any slight negative sentiment can trigger a drop. Many analysts had cautioned that “valuation risk” was significant. Moneycontrol+2Business Today+2

▸ Market dynamics & investor sentiment — cautious for edtech

The broader edtech sector in India has seen turbulence, especially after previous high-valuation failures. Investors might now be more skeptical. As a newly listed edtech firm, PW faces pressure to prove sustainable growth. Some reports highlight reduced confidence in long-term growth potential and profitability. Navbharat Times+2Business Today+2

▸ Business risk: scaling challenges & offline expansion burden

PW’s business model includes rapid offline and hybrid center expansion, along with heavy investments in infrastructure and marketing, as per its IPO plan. Business Standard+2mint+2
Such expansion requires capital, consistent revenue, and timely execution — if growth lags or expenses overshoot, profitability can suffer. For a company still consolidating, any misstep may shake investor confidence.

▸ Volatile stock behavior common with newly listed companies

New listings, especially in high-hype sectors, often see sharp fluctuations as the market and investors recalibrate their expectations. Post-IPO corrections are not unusual as initial exuberance subsides. PW seems to be experiencing such a reset.

4. Fundamentals: What Does Physics wallah Financials & Business Look Like

PW reportedly had annual revenue of around ₹3,039 crore for fiscal year 2025. Business Today+1
However, despite high topline, the firm was loss-making: net loss in FY25 was noted as ₹243 crore. Business Today+1
The company operates a diversified edtech business — not just online courses, but also offline and hybrid centres, study materials, upskilling courses across many categories (entrance exams like JEE/NEET, other professional upskilling etc.). Screener+2Moneycontrol+2
Its model depends on scaling — large user base, expansion of centers, marketing, and infrastructure — which can boost revenue, but if user growth or conversion slows, costs may become heavy.

In essence: PW is a growth-oriented firm with ambitious plans, but also carries non-trivial risk. Its valuation and performance are heavily dependent on execution, scale, and market sentiment — not yet stable enough to call it a “safe bet.”

5. Should You Buy or Hold PW? — My Review and What I’d Watch

✅ What looks promising:

PW has made a bold step by going public — the IPO listing and initial investor interest show that the edtech model and brand still excite the market.
The diversified model (online + offline + hybrid) gives flexibility — if offline/hybrid centers scale well, PW could tap into both urban and non-metro students.
The large revenue base suggests potential — if PW can eventually turn profitable and contain costs, growth could resume.
For long-term investors: If you believe in India’s demand for affordable education and the brand of PW, there might be upside if execution is good and market sentiment improves.

⚠️ Significant risks & Why caution is needed:

The company is still unprofitable despite high revenue. Losses may continue until scale + efficiency improve, so investing now is speculative.
The share price is already volatile post-listing — high risk of further swings. If you bought near listing peak, downside may continue.
Expansion (offline centers, marketing, infrastructure) is capital-intensive — if the user acquisition or retention slows, debt or cash burn can hurt financials.
The edtech sector globally and in India remains under scrutiny; regulatory changes, competition, or macroeconomic factors (inflation, interest rates) may affect performance.
As of now, financial metrics (like P/E, EPS) are weak or negative — meaning standard valuation models won’t provide confidence.

🎯 My view:

For long-term, risk-tolerant investors: PW can be viewed as a high-risk, high-reward play. There’s potential — but success depends heavily on execution. If you believe in PW’s vision and ability to scale, investing a small portion might be acceptable.
For risk-averse or conservative investors: Better to wait. Let the company prove stability: maybe wait for next few quarters’ financials, show of profit, stabilization in share price.

6. Conclusion

In just its first week after IPO, Physics wallah moved from being a high-flying newcomer to a cautionary tale of volatility. The initial listing surge created optimism, but the sharp slide since then signals that risk and market sentiment matter as much as fundamentals — especially for new-age, growth-oriented firms.

Whether PW is worth holding (or buying) depends on your risk appetite, time horizon, and belief in the company’s long-term vision. If you are comfortable with volatility and speculative risk, it could pay off — but if you prefer stable returns or lower risk, it may be smarter to wait and observe.

Disclaimer:

I am not a licensed financial advisor. This blog is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell shares of Physics wallah or any other security. Always do your own research (due diligence), consider your financial situation carefully, and — if needed — consult a qualified financial advisor before investing