Prabhudas Lilladher Ups Physicswallah to ‘Accumulate’ with a ₹140 Target

Prabhudas Lilladher’s latest research note, dated 5 November 2026, nudged Physicswallah (PWL) to an ‘accumulate’ rating and stuck a ₹140 price target on the stock. The broker’s analysts walked us through the numbers, and, honestly, there’s a lot to unpack.

First off, the top‑line – the revenue – rose 18.2% year‑on‑year, reaching roughly ₹12,423 million. That’s a bit shy of the consensus (₹12,615 million), mainly because the NEET admission cycle slipped a little; the exam results were delayed, leaving prospective students less time to enrol.

What’s more interesting is the bottom line. Pre‑IND‑AS EBITDA jumped a solid 45.2% to ₹2,334 million, nudging the margin up to 18.8% from 18.3% a year earlier. The lift comes largely from the online arm – content, faculty and platform costs are pretty much fixed, so any revenue bump translates into higher profitability.

Looking ahead, the firm still expects FY‑27 revenue to rise about 20.8% in the first half, and it’s keeping its full‑year growth guidance around 30%. The analysts even pencilled in a cushion of buy‑outs – roughly $20 million is earmarked for strategic acquisitions that could broaden the platform’s reach.

Expansion isn’t just a buzzword here. Physicswallah is stepping into K‑12 online, early‑learning modules and up‑skilling programmes. If those bets pay off, the broker forecasts a compound annual growth rate of about 25% for revenue and a staggering 66% for pre‑IND‑AS EBITDA between FY‑26 and FY‑29.

Valuation-wise, the stock is currently trading at about 37‑times FY‑28 EBITDA and 23‑times FY‑29 EBITDA (adjusted for ESOP costs). Prabhudas Lilladher kept the target multiple unchanged – 35‑times for the online side and 15‑times for the offline business, leading to the ₹140 target price.

Bottom line? The broker’s confidence is evident. While the market may still be wrestling with short‑term headwinds, the long‑run outlook looks bullish enough to stick with an accumulate recommendation.