PhysicsWallah surges 18% as company drops ₹120 crore NBFC plan

Physicswallah shares jumped 17.7 per cent on BSE, logging an intra-day high of ₹108.45 per share. However, at 11:43 AM, the stock pared some gains but remained up 14.5 per cent at ₹105.45 per share. In comparison, the BSE Sensex was up 0.22 per cent at 74,506.95.

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The company had recently announced an investment of approximately ₹120 crore through an equity infusion in FinZ Finance. The reversal is intended to materially reduce balance sheet and credit-related risks for the company. Going forward, PhysicsWallah will operate as a technology platform connecting its students to a curated list of regulated lending partners, based on students’ learning lifecycle and academic outcome journey.

“We received feedback from our partners that our core strength lies in building communities and our online business. Our lending business is best left to regulated third-party NBFCs who have created robust underwriting capabilities. We truly believe that prudent capital allocation and shareholder value remain our foremost priority and, in light of the feedback received from our partners to the said announcement, we have exercised our fiduciary responsibility to revisit this decision and enable student lending through regulated third-party NBFCs,” said Prateek Maheshwari, Co-founder, PhysicsWallah.

The strategic direction for FinZ Finance will be decided in the near future, subject to board and other regulatory approvals.

Its revenue from operations rose 50.7 per cent to ₹918.8 crore, as compared to ₹609.6 crore a year ago. 

JM Financial downgraded PhysicsWallah to ‘Add’ from ‘Buy’ while slightly raising its March 2027 SOTP-based target price to ₹125 from ₹120, citing limited near-term upside after the stock rallied over 25 per cent since initiation in March 2026. The brokerage also flagged a potential overhang from PhysicsWallah’s decision to infuse ₹12 crore into a subsidiary with a non-banking and financial company (NBFC) licence to enable education loans to students.