Shares of edtech firm PhysicsWallah continued to trade in the red on Friday, marking the third consecutive session of losses since its market debut. Analysts said traders should adopt a cautious investment strategy as the newly listed stock remains highly volatile.

The stock saw sharp swings during the day. It initially surged more than 5 per cent to Rs 149.59 apiece but later erased all gains and slipped over 2 per cent to Rs 139.07 apiece by 1:46 pm. The company’s market capitalisation currently stands at Rs 40,490 crore.

The fall follows a steep selloff that began soon after listing. On Tuesday, the company’s market cap briefly dropped below Rs 35,000 crore, reflecting a loss of nearly Rs 12,000 crore from the peak valuation of Rs 46,300 crore it touched on debut day.

PhysicsWallah made a strong entry into the public markets on November 18, listing at a premium of over 33 per cent at Rs 145 per share on the NSE. The stock climbed further to close at Rs 156.49 on the first day, ending nearly 44 per cent above its IPO price.

Founded as a YouTube channel in 2016, PhysicsWallah has grown into one of India’s largest edtech companies, operating both online and offline coaching centres. The company recorded 49 per cent revenue growth in FY25, while reducing its losses to Rs 243 crore from a significantly higher level in the previous fiscal.

Despite the recent volatility, PhysicsWallah’s valuation still surpasses that of unlisted competitors such as upGrad, last valued at $2.25 billion, and Unacademy, valued at $3.44 billion. According to its DRHP, the company raised Rs 3,480 crore through its initial public offering, structured as a Rs 3,100 crore fresh issue and Rs 380 crore via an Offer for Sale (OFS) by its founders.

The IPO was priced at Rs 103–Rs 109 per share and saw an overall subscription of 1.81 times.