The brokerage said PhysicsWallah, which started as a YouTube channel in 2016, has evolved into one of India’s leading education technology companies with a presence across both online and offline learning.
HSBC said the company’s growth is being driven by strong demand for quality education and the increasing importance of competitive entrance examinations in India.
The brokerage added that PhysicsWallah remains relatively insulated from AI-led disruption in the domestic market and is also resilient during broader macroeconomic slowdowns.
The brokerage said that India’s favourable demographics, with an average age of 28, continue to provide a structural growth tailwind. At the same time, modest job creation has increased the importance of academic credentials, supporting higher household spending on exam preparation.
Over FY26-28E, HSBC expects adjusted EBITDA to rise nearly sevenfold to ₹960 crore, driven by around 30% CAGR in revenue and a sharp improvement in margins from nearly 3.6% in FY26E to around 15% by FY28E.
Key risks to the brokerage’s outlook include regulatory changes, teacher attrition, and intensifying competition in the offline education segment.
First Published: May 11, 2026 1:45 PM IST
