Goldman Sachs has initiated coverage on PhysicsWallah with a neutral rating and a target price of ₹135 per share, noting that while the edtech platform continues to scale rapidly across online and offline formats, the current valuation already captures much of its medium-term growth potential. The brokerage highlighted that the company is now one of India’s largest education-technology businesses, with a revenue mix that is broadly split between digital offerings and its expanding offline centres.
According to Goldman Sachs, PhysicsWallah is well placed to deliver a 24% revenue CAGR over FY25–30, lower than the 38% growth achieved in the past two years but still at the upper end relative to other Indian internet-sector companies. The brokerage expects earnings to grow sharply, projecting 80%+ EBITDA CAGR, albeit from a small base. It attributes this expansion to PhysicsWallah’s strong organic traffic funnel, a more rational competitive landscape in the edtech sector and an affordable pricing structure that allows the platform to deepen penetration across multiple education categories.
Goldman Sachs said the company benefits from a structurally attractive business model with a negative working capital cycle, which supports strong cash generation as scale improves. The brokerage forecasts that PhysicsWallah will generate 100%+ free cash flow to net income starting FY26, further strengthening its financial flexibility.
While the long-term outlook remains favourable, Goldman Sachs said the neutral stance reflects a balanced risk-reward in the near term, given that the company’s strong revenue visibility, omnichannel presence and cost structure are already well recognised by the market.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
