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Goldman Sachs Bullish on Physics Wallah's Future

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  Published in Stocks and Investing on Tuesday, February 17th 2026 at 22:14 GMT by Zee Business
      Locales: INDIA, UNITED STATES

Mumbai, India - February 18, 2026 - In a move that has surprised many analysts, Goldman Sachs has issued a decidedly bullish forecast for Physics Wallah (PW), the rapidly growing Indian edtech startup. While PW remains a private entity, the investment bank's detailed assessment predicts the company is poised to become a dominant force in India's burgeoning education sector, potentially reshaping how millions of students access learning materials.

Goldman's report, released earlier today, goes beyond simply acknowledging PW's existing success; it delves into the strategic factors that differentiate the company and position it for continued expansion. The analysis points to a unique combination of factors, including aggressive growth, diversified offerings, a laser focus on underserved markets, and a successful monetization strategy, as key drivers for PW's potential.

From YouTube Sensation to Education Powerhouse:

Physics Wallah initially gained prominence through its engaging and accessible physics lectures on YouTube, particularly popular amongst students preparing for competitive entrance exams like the JEE and NEET. Founded by Alakh Pandey, a former teacher, the platform quickly built a loyal following due to its focus on simplifying complex concepts and delivering high-quality instruction at no cost. This organic growth, fueled by word-of-mouth and social media, laid the foundation for PW's subsequent expansion.

However, Goldman Sachs highlights that PW's story isn't solely about free content. The company has demonstrated a remarkably smooth transition towards a hybrid model, incorporating premium, paid courses and comprehensive study materials. This strategic shift is crucial, according to analysts, as it allows PW to capture a greater share of the revenue generated from India's estimated $110 billion education market. The report estimates PW's revenue has grown at a compound annual growth rate (CAGR) of over 80% in the last three years.

Targeting the 'Real' India: Tier 2 & 3 City Dominance

A significant aspect of Goldman's bullish call centers around PW's deliberate strategy of targeting students in Tier 2 and Tier 3 cities. While many edtech companies initially focused on metropolitan areas with better internet infrastructure and higher disposable incomes, PW recognized the immense, untapped potential of India's smaller towns and cities.

"PW's commitment to accessibility extends beyond price," explains Rakesh Kumar, a senior analyst at Goldman Sachs specializing in the Indian education market. "They've invested heavily in localized content, multilingual support, and offline learning centers in these regions, effectively breaking down the barriers that traditionally prevented students in these areas from accessing quality education. This is a critical differentiator that sets them apart from competitors."

Diversification Beyond STEM: A Holistic Learning Ecosystem

Goldman's report also emphasizes PW's expanding curriculum. Initially centered around physics and mathematics for competitive exams, PW has rapidly diversified its offerings to include courses for the CBSE curriculum (India's Central Board of Secondary Education), state board exams, and even skill-based training programs. This diversification isn't just about expanding revenue streams; it's about building a holistic learning ecosystem that caters to students of all ages and academic interests. The company recently launched 'PW Skills,' a platform dedicated to vocational training, further broadening its reach.

Challenges Remain in a Crowded Market

Despite the optimistic outlook, Goldman Sachs acknowledges that Physics Wallah faces challenges. The Indian edtech market is becoming increasingly crowded, with established players like Byju's and Unacademy vying for market share. Regulatory hurdles and concerns about data privacy also pose potential risks. Furthermore, maintaining quality control as the platform scales is a constant concern. The recent period of edtech consolidation in 2025 saw several companies struggle with profitability, and PW will need to demonstrate sustainable growth.

However, Goldman believes that PW's strong brand reputation, innovative approach, and strategic focus on underserved markets will enable it to navigate these challenges and emerge as a clear leader. The report concludes that an IPO for Physics Wallah within the next 18-24 months is increasingly likely, and anticipates significant investor interest. The stock, if and when it is listed, is predicted to outperform the broader market in its initial trading period. The Goldman Sachs analysis has undeniably injected fresh optimism into the Indian edtech landscape, positioning Physics Wallah as a company to watch.