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PhysicsWallah shares surged more than 17% in intraday trade on Thursday after the company announced a significant restructuring of its student lending strategy, a move aimed at reducing balance sheet exposure and mitigating credit-related risks.
As of 12:43 PM IST, shares of PhysicsWallah were trading near the day's high of ₹108.44 after opening at ₹91.00. The stock touched an intraday high of ₹108.44 against a previous close of ₹92.04, witnessing strong buying interest from investors. Trading volumes also remained exceptionally high, with more than 5.58 crore shares changing hands during the session.
The sharp rally came after the company informed exchanges that it is revising its lending business model despite recently announcing an equity infusion of approximately ₹120 crore into its wholly-owned subsidiary, FinZ Finance Private Limited.
Under the revised strategy, PhysicsWallah will no longer directly undertake lending exposure through FinZ Finance. Instead, the company has partnered with multiple regulated third-party non-banking financial companies (NBFCs) to cater to the financing needs of students enrolled on its platform.
The company stated that the decision effectively reverses its earlier approach and is designed to materially reduce balance sheet and credit-related risks. Going forward, PhysicsWallah will continue to operate as a technology platform that connects students with a curated network of regulated lending partners based on their academic journey and learning outcomes.
Management believes the new structure will enhance affordability and accessibility for students while creating a more scalable and robust ecosystem capable of deeper penetration across the education sector.
The future strategic direction of FinZ Finance will be determined in the coming months, subject to board approvals and applicable regulatory clearances.
Commenting on the development, PhysicsWallah Co-founder Prateek Maheshwari said the company received feedback from partners indicating that its core strengths lie in community building and its online education business, while lending activities are better managed by regulated financial institutions with established underwriting capabilities.
He added that prudent capital allocation and shareholder value remain top priorities for the company and that the decision reflects its fiduciary responsibility to reassess the earlier lending strategy in light of stakeholder feedback.
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