PhysicsWallah shares jump 18% as ed tech co revamps lending strategy, ties up with NBFCs

Shares of recently listed Physicswallah Ltd surged as much as 18 per cent during the trading session on Thursday after the company announced to revise it its lending strategy and partnered with leading regulated NBFCs for student financing. The ed-tech player informed about the same through an exchange filing.

Physicswallah announced investment of Rs 120 crore through an equity-infusion in its fully-owned subsidiary FinZ Finance, said the company in the exchange filing. It is restructuring its lending strategy and has Ɵed up with mulƟple leading regulated third-party NBFCs to enable student lending needs, it said.

Shares of Physicswallah soared 17.75 per cent on Thursday to Rs 108.45, with a total market capitalization close to Rs 31,000 crore. To recall, Physicswallah was listed in November 2025 when the company raised a total of Rs 3,480 crore from investors for Rs 109 apeice with a lot size of Rs 137 equity shares.

“This decision reverses the Company’s earlier approach and is intended to materially reduce balance sheet and credit related risks for the Company. We will continue to work as a technology platform that connects PW’s students to a curated list of regulated lending partners, based on students’ learning lifecycle and academic outcome journey of such students,” it added.

Physicswallah will continue to enable affordability and accessibility, and make it more scalable, robust and capable of deeper penetration into the student ecosystem, said the company its filing. “Going forward, our strategic direction for Finz Finance will be decided in the near future subject to the Board and other regulatory approvals,” it told.

Despite today’s strong rise, the company could not hit its IPO price of Rs 109.  The stock is down 37 per cent from its all time high at Rs 162.05 hit post listing in November, while the stock has gained more than 40 per cent from its all time low at Rs 77.75 hit on March 04, 2026.

“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, said Prateek Maheshwari, Co-founder of Physicswallah.

“We truly believe that prudent capital allocation and shareholder value remains 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,” he added.

PhysicsWallah reported its Q4 FY26 earnings with operational revenue at Rs 919 crore, reflecting a 51 per cent YoY increase from Rs 610 crore in Q4 FY25. Net loss for the quarter narrowed significantly by over 74 per cent to about Rs 69 crore, down from a loss of Rs 289 crore in the same quarter last year. Its treasury stood at Rs 5,027 crore as of March 31, 2026.

In May 2026, HSBC has initiated coverage on PhysicsWallah with a BUY rating and a price target of INR 135, citing strong demand for academic credentials across India as a structural growth driver. The stock also saw initiation from JP Morgan with an Overweight target and a target price of Rs 125 in April 2026.