The brokerage believes PhysicsWallah’s strength lies in its omnichannel model, where it first builds a large user base through free content and engagement, and then converts them into paying customers.
Its core offerings remain JEE and NEET courses, while it continues to expand into regional languages and new categories.
Elara expects strong growth momentum to continue, projecting a revenue CAGR of 27% and EBITDA CAGR of nearly 85% between FY25 and FY28. The company is also expected to turn profitable at the adjusted PAT level by FY27.
A key driver is its low-cost customer acquisition strategy, where free digital content brings in users who later upgrade to paid courses, test series, and learning tools. This model has helped the company scale rapidly, with millions of users across its platforms and a growing base of paid enrolments.
Alongside its digital business, PhysicsWallah has built a fast-growing offline presence. The company now operates over 300 centres across 200 cities, catering to students seeking classroom learning.
This segment is seen as a higher-value extension of its online platform and is expected to deliver steady growth as utilisation improves.
The brokerage also highlights strong cash generation, supported by upfront fee collections and efficient cost structures.
With a sizeable cash balance, the company is funding its expansion internally without putting pressure on its balance sheet.
Elara values the company’s online and offline businesses separately and believes current valuations remain attractive, given its growth visibility and improving profitability.
However, risks include regulatory changes in the coaching sector, slower ramp-up in offline centres, and challenges around faculty hiring and execution.
