Post-Listing Reality Check Hits India’s New-Age Stocks as Profit-Taking Pulls Down PhysicsWallah, Lenskart- Groww Also Drops After 94% Rally

Mumbai | November 19

India’s newly listed digital and consumer-tech stocks faced their first bout of post-listing pressure this week, as profit booking and softer second-day sentiment dragged counters like PhysicsWallah, Lenskart, and now Groww lower. The reversal follows strong early gains and signals the market’s caution in valuing new-age businesses amid volatile conditions.

PhysicsWallah, one of the most anticipated listings of the year, slipped close to 6% on Wednesday. Lenskart, another high-profile debutant, lost 4% after a short rally earlier in the week.

Adding to the pressure, Groww shares, which had rallied nearly 94% from their IPO price across six sessions, hit the 10% lower circuit on Wednesday, the stock’s first decline since listing.

Groww: First Sharp Correction After a Blockbuster Rally

Billionbrains Garage Ventures, the parent company of leading stock broking platform Groww  also faced its first meaningful correction since listing, with the stock hitting the 10% lower circuit on Wednesday after an extraordinary 94% rally in just six sessions. The shares, which debuted at a premium of ₹112 against the IPO price of ₹100, had soared to an all-time high of ₹193.80 on November 18, briefly pushing the company’s market capitalisation past ₹1.17 lakh crore, higher than several Nifty constituents including Tata Consumer, Apollo Hospitals and Dr Reddy’s.

The sharp reversal to ₹169.89 led exchanges to reduce the circuit limit from 20% to 10%, as heavy profit booking and rising valuation concerns drove the decline. Despite the correction, Groww remains one of the most aggressively valued listings of the year, prompting markets to reassess expectations after a euphoric debut.

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PhysicsWallah: From Strong Debut to Day-2 Cool Off

The edtech major PhysicsWallah delivered a standout listing on November 18, opening 33% above its IPO price at ₹145 and closing Day 1 at ₹156.49, a 44% premium to the issue price of ₹109.

Day 2 however brought consolidation, with the stock easing to ₹146.36, trimming debut-day gains. Though still well above its IPO price, it now sits only marginally above its listing level.

The decline appears driven by early investors cashing out, rather than a shift in the company’s fundamental outlook. With PhysicsWallah’s hybrid model spanning test-prep, online delivery, and offline centres, the market now awaits sustained monetisation trends before pricing in further upside.

Lenskart: A Choppy First Week After a Discounted Debut

Eyewear platform Lenskart experienced a more uneven listing journey. The stock debuted at a 2–3% discount to its IPO price on November 10, then staged a quick recovery, rising nearly 11% to ₹438.85 by November 17.

The momentum faded soon after. Lenskart slipped 1.5% on November 18, followed by another 4% drop to ₹409.30 on Wednesday. It currently trades just 2% above its IPO price of ₹402.

The movements echo a common pattern in consumer-tech IPOs: a muted listing, a speculative rebound, and a stabilisation period as investors evaluate margin outlooks, store expansion plans, and profitability timelines.

New-Age Earnings Still Mixed in Q2 FY26

The dip in newly listed stocks comes against the backdrop of uneven quarterly performance across India’s public-market tech cohort.

Of the 11 new-age companies that have reported Q2 FY26 results, seven remain loss-making, including Delhivery, Swiggy, Mobikwik, Urban Company, Ixigo, BlueStone, and Ola Electric.

Losses stem from a mix of one-off expenses, strategic reinvestments, and continued spending to defend market leadership against private competitors. While revenue metrics remain strong across several platforms, profitability remains elusive for much of the cohort.

What’s Driving the Correction?

The declines in PhysicsWallah, Lenskart and other recent listings can be attributed to a combination of factors:

• Profit booking after strong listing gains- Investors are capturing early premiums in a market lacking broad upward momentum.
• Valuation consolidation- New-age stocks often face a stabilisation phase as price discovery adjusts beyond debut-day exuberance.
• Mixed Q2 FY26 results- Continued losses at several digital platforms have made investors more selective.
• Weak global tech sentiment- Softening US and Asian tech indices are dampening domestic risk appetite.

Bottom Line: A Healthy Reset for New-Age IPOs

The pullback in newly listed stocks is being viewed as a healthy recalibration, helping correct inflated expectations after a wave of high-profile tech IPOs. While momentum-driven traders exit, long-term investors are shifting focus to fundamentals: sustainable profitability, market leadership, customer acquisition efficiency, margin expansion, and cash runway visibility.

With several digital IPOs lined up for early 2026, this cooling-off phase may pave the way for more disciplined valuations and better-quality investor participation in the months ahead.

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