PhysicsWallah shares experienced significant selling pressure on Tuesday, January 20, falling nearly 8% and extending losses for the third consecutive trading session. The edtech platform's stock has declined 14% over the past three trading days, with substantial trading volumes of around 44 lakh shares recorded by 11 am IST.

Market Performance and Valuation Impact

The sharp sell-off has significantly impacted the company's market valuation, with key metrics showing substantial changes from its listing levels.

Technical Analysis Indicators

The stock's technical position has deteriorated significantly, with multiple indicators suggesting weakness. PhysicsWallah shares are currently trading below all key short-term moving averages, including the 5-day, 10-day, 20-day, and 30-day averages. The Relative Strength Index has dropped to 31.7, approaching the oversold threshold of 30, which typically indicates potential buying opportunities for technical traders.

Business Performance and Growth Strategy

Despite market pressures, the company maintains strong operational momentum. Co-founder and whole-time director Prateek Maheshwari previously indicated that PhysicsWallah aims to achieve profitability within the next 12 months. The company's expansion strategy focuses on several key areas:

• Accelerated growth in southern India
• Strengthening presence across 11 Indic languages
• Expansion into multiple exam categories
• Balanced growth between online and offline segments

Revenue Mix and Financial Performance

The company's revenue structure demonstrates a balanced approach between digital and physical presence. Currently, 52% of revenue comes from online business operations, while offline centres contribute the remaining 48%. This revenue mix is expected to remain stable as both segments continue growing at healthy rates.

IPO Performance and Market Debut

PhysicsWallah's initial public offering demonstrated strong investor interest, with the ₹3,480 crore IPO subscribed nearly two times during the November 11-13 subscription window. The company delivered impressive listing gains of 36%, debuting at ₹145 on NSE and ₹143.10 on BSE against the issue price of ₹109.

Subscription details revealed varied investor participation across categories, with retail investors subscribing 106% of their quota, non-institutional investors at 48%, and qualified institutional buyers achieving 2.7 times oversubscription.

Company Background and Current Operations

Founded in 2016 by Alakh Pandey, who initially began uploading free physics lessons on YouTube, PhysicsWallah gained significant prominence during the pandemic period. The company has built substantial infrastructure with 303 offline centres operating across 152 cities in India and the Middle East, supporting its hybrid education model.

Physicswallah Limited has announced another significant land acquisition through its wholly owned subsidiary, Penpencil EduServices Private Limited. The company disclosed the latest transaction under Regulation 30 of SEBI Listing Regulations on January 18, 2026, marking the second major land purchase in the same region within a month.

Latest Land Acquisition Details

Penpencil EduServices Private Limited executed a sale deed on January 17, 2026, for acquiring an additional 1.16 acres of land situated at Village-Tupudana, District Ranchi. This acquisition follows the company's earlier purchase of 1.76 acres in December 2025, demonstrating continued commitment to expansion in the region.

Strategic Expansion Framework

The latest acquisition is part of the company's comprehensive expansion strategy, supported by a substantial fund infusion of approximately ₹400 crores in Penpencil EduServices, as disclosed on December 8, 2025. The company has indicated that Penpencil may acquire additional parcels of land from time to time as part of its strategic investments.

Transaction Structure and Compliance

The January 2026 transaction amounts to ₹38.00 crores (Indian Rupees Thirty Eight Crore Only), excluding transfer and other applicable charges and duties. Similar to the previous acquisition, the land has been acquired free from all encumbrances, charges, mortgages, attachments, lis pendens, demand, liens and trust of whatsoever nature.

Corporate Disclosure

The disclosure was signed by Ajinkya Jain, Group General Counsel, Company Secretary & Compliance Officer of Physicswallah Limited. The company confirmed that both transactions do not fall within related party transactions, and the sellers have no relationship with the promoter, promoter group, or group companies. Complete disclosure documentation has been hosted on the company's website at https://www.pw.live/investor-relations for stakeholder reference.