PhysicsWallah Shares Surge 14% Following Partnership with Leading Non-Banking Financial Corporations for Student Financing

PhysicsWallah Sees 14% Surge in Shares After Partnership Announcement

Shares of edtech firm PhysicsWallah rose 14% on June 4 after the firm announced a strategic partnership with leading regulated Non-Banking Financial Companies (NBFCs) for student financing. The partnership comes after PhysicsWallah recently announced an investment of approximately Rs 120 crore through an equity infusion in its fully-owned subsidiary FinZ Finance.

In a stock exchange filing, PhysicsWallah stated that it is restructuring its lending strategy and has partnered with multiple leading regulated third-party NBFCs to enable student lending needs. This decision reverses the company's earlier approach and is intended to materially reduce balance sheet and credit-related risks for the company. At 11:22 am on June 4, PhysicsWallah shares were trading 14% higher at Rs 104.89 apiece.

Under the new strategy, PhysicsWallah will continue to work as a technology platform that connects its students to a curated list of regulated lending partners, based on students' learning lifecycle and academic outcome journey. The company will continue to enable affordability and accessibility, and make it more scalable, robust, and capable of deeper penetration into the student ecosystem. Going forward, the strategic direction for FinZ Finance will be decided in the near future subject to the Board and other regulatory approvals.

Read also: SpaceX Prices IPO at $135 Per Share, Challenging Traditional Wall Street Practices

PhysicsWallah's co-founder, Prateek Maheshwari, stated that the company received feedback from its partners that its core strength lies in building communities and its online business. The lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities. The company has exercised its fiduciary responsibility to revisit this decision and enable student lending through regulated third-party NBFCs.

Key financial highlights from the company's recent performance include:

The company's annual revenue from operations increased by 35% to Rs 3,899.54 crore in FY26 from Rs 2,886.64 crore a year ago. The company's loss narrowed to Rs 24.17 crore in FY26 from Rs 243.26 crore in FY25. Additionally, PhysicsWallah saw a significant increase in its total faculty members, rising by 34% to 6,837 on a year-over-year basis, taking its total employee count to 18,997 at the end of FY26. The company also increased its total centres by 78% with capex of around Rs 250 crore to 353 from 198 in FY25. At the end of FY26, the company closed with a student base of 142 million.

Read also: CMR Green Tech IPO Sees Robust Subscription on Second Day, Reaches Five Times Subscribed