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Motilal Oswal Initiates ‘Buy’ Ratings For Physicswallah, Why Brokerage Sees 60% Upside Potential
Sanjeev Kumar | September 4, 2026 6:22 PM CST

The Shares Physicswallah surged over eight per cent in intraday trade, hitting a high of Rs 130.70 on the NSE. This surge in the edtech company's shares came after domestic brokerage firm Motilal Oswal initiated coverage, issuing a 'Buy' rating with a target price of Rs 200. This shows potential for an uptick of approximately 60 per cent from the current level.

The company's shares opened in positive territory at Rs 123.37 as compared to last day's closing of Rs 120.60. However, the edtech stock soared to hit an intraday high at Rs 130.70, up over 8 per cent from last closing. Meanwhile, it's 52 week high and low values stood at Rs 161.99 and Rs 77.2, respectively.

Why is Motilal Oswal bullish on Physicswallah's shares?

In its report, the domestic brokerage highlighted that Physicswallah has low customer acquisition costs, a scalable online business, and significant opportunities for digital penetration in India's education market. The brokerage stated that the company's strong presence on YouTube has created a "free-to-paid funnel," allowing it to engage students at a very low cost and monetise them through online, hybrid, and offline services.

Target Price: Rs 200 per share

Rating: Buy

Implied Upside: Around 66 per cent from the reference price of Rs 121

What Motilal Oswal Noted: 5 Points

  1. According to the brokerage firm, Physicswallah has over 100 million YouTube subscribers, and its revenue grew at a rate of approximately 74 per cent annually between FY23 and FY26.
  2. Motilal Oswal considers the online business to be a key driver of the company's value. It expects the company's revenue to grow at a CAGR of approximately 28% during FY26-30.
  3. This growth will be driven by increased paid user numbers, category expansion, and AI-based monetisation.
  4. The company expects pre-Ind AS EBITDA margins to increase from approximately 26% in FY26 to 30% by FY28.
  5. The brokerage believes there is significant scope for digital adoption. Online penetration in the key JEE and NEET categories is approximately 20 per cent.

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