Shares of PhysicsWallah Ltd. (PW) declined 4% on Tuesday, closing around ₹110.18, as investors reacted to financial indicators suggesting pressure on profitability despite robust revenue growth.
According to the company’s latest financial data, Total Revenue rose to ₹24,956 million in March 2025, compared with ₹16,152 million in the previous year, reflecting strong top-line expansion. However, sentiment weakened as Total Expenditure stood at ₹26,044 million, exceeding revenue and signaling margin pressure.
Key factors behind the decline:
Profitability Concerns: Expenses surpassing revenue raised worries about operating margins and earnings visibility.
Rising Cost Structure: Higher spending linked to operations and expansion weighed on investor confidence.
Cautious Market Sentiment: Despite strong revenue growth, lack of clarity on near-term profitability triggered selling pressure.
Intraday Weakness: The stock traded in the lower range during the session, reflecting short-term technical weakness.
Market observers note that while PhysicsWallah’s long-term growth trajectory may remain intact, near-term focus will be on profitability, cost control, and earnings clarity, which are likely to drive the stock’s movement ahead.