The brokerage said PhysicsWallah delivered a decent Q1FY27 performance despite some revenue being pushed out due to the re-conduct of the NEET exam.
Consolidated revenue grew 24% YoY, while pre-Ind AS EBITDA loss narrowed to ₹44.2 crore from ₹88.7 crore in Q1FY26. The EBITDA margin improved by 628 basis points YoY to -4.2%.
The online business remained the key growth driver, with revenue rising 33.2% YoY, supported by strong traction in K-12 and early learning, vernacular offerings and newer categories. The brokerage also noted improving monetisation and profitability.
Offline revenue growth of 14.5% YoY was impacted by the shift in NEET exam timing. Adjusting for this impact, JM Financial estimates offline revenue growth would have been around 20-25% YoY.
Management reiterated its FY27 guidance of 30% consolidated revenue growth and a doubling of pre-Ind AS EBITDA. PhysicsWallah also announced the divestment of FinZ, which the brokerage said could help address concerns around capital allocation.
JM Financial believes the underlying business fundamentals remain intact and that the stock’s correction of more than 20% from its recent highs has made the risk-reward favourable again.The company said momentum has picked up strongly since July following the announcement of exam results and the start of the new academic cycle, with robust enrolment and collection trends indicating healthy demand for its online NEET offerings.
