Physicswallah (PWL IN) – Q2FY27 Result Update – Revenue guidance under scanner – ACCUMULATE
Published on 05 Nov 2026
We cut our pre-IND AS EBITDA estimates by 2%/3% for FY28E/FY29E as we fine-tune our growth assumptions for the offline business. PWL IN’s top-line increased 18.2% YoY to INR12,423mn (PLe INR12,615mn) as recovery in NEET business lagged when compared to last admission cycle given delay in results giving students less time to cut into the usual admission cycle. However, pre-IND AS EBITDA increased 45.2% YoY to INR2,334mn (PLe INR2,311mn) with a margin of 18.8% (PLe 18.3%) due to healthy operating leverage in the online business (content, faculty & platform cost is fixed). While top-line increased 20.8% YoY in 1HFY27; full year growth guidance of ~30% remains intact with a built-in cushion of buy-outs (US$20mn has been earmarked). Driven by expansion into new categories like online K-12, early learning and upskilling, we expect revenue/pre-Ind AS EBITDA to log 25%/66% CAGR over FY26-29E. The stock trades at 37x/23x over our pre-Ind AS EBITDA (adjusting for ESOP cost) estimate for FY28E/FY29E. Retain ACCUMULATE with a SoTP based TP of INR140 (online/offline business valued at 35x/15x Sep-28E pre-IND AS EBITDA; no change in target multiple).
