PhysicsWallah shares gain nearly 10% as JPMorgan, JM Financial upgrade rating after Q1 results

Edtech unicorn PhysicsWallah shares gained momentum on Monday after two brokerages turned more bullish on the edtech company following its Q1 FY27 results. The stock climbed 9.6% to Rs 128.35 on the BSE as JPMorgan and JM Financial upgraded their ratings on the company JPMorgan upgraded PhysicsWallah to ‘Overweight’ from ‘Neutral’ while retaining its Rs 148 target price. It said the Q1 performance beat expectations despite NEET-related disruption and noted the company’s 30% FY27 revenue growth guidance. JM Financial raised its rating to ‘Buy’ from ‘Add’ while retaining its Rs 140 target price. The brokerage cited improving fundamentals and a better risk-reward profile after the stock’s recent correction. PhysicsWallah’s operating revenue rose 24.4% year-on-year to Rs 1,054 crore in Q1 FY27 from Rs 847.1 crore in the year-ago quarter. Its net loss narrowed 30.5% to Rs 88.3 crore, while EBITDA turned positive at Rs 52 crore from an EBITDA loss of Rs 21 crore in Q1 FY26. Adjusted EBITDA jumped more than fivefold to Rs 135 crore, with the adjusted EBITDA margin expanding to 12.9% from 3.1%. The online business remained the company’s main growth driver, with revenue rising 33% year-on-year to Rs 549 crore. K-12 and early-learning revenue also surged 88% to Rs 105 crore. Recently, PhysicsWallah approved a Rs 71.8 crore investment in UPSC coaching platform Sarrthi IAS, raising its stake from 40% to 51% and making it a subsidiary. The acquisition is expected to strengthen its presen…