PhysicsWallah, a prominent Indian education technology company, saw its shares increase by 6.4% on the Bombay Stock Exchange (BSE), reaching an intra-day high of ₹115.55 before settling at ₹111.25. This surge follows HSBC Global Investment Research's initiation of coverage with a 'Buy' rating and a target price of ₹135. The brokerage values PhysicsWallah at ₹38,600 crore based on a projected 35x FY28 adjusted Earnings before interest, tax, depreciation, and amortisation (EBITDA) of ₹960 crore. The company benefits from strong demand for quality education and has been largely insulated from AI disruptions, as well as macroeconomic slowdowns. HSBC estimates that the Indian test preparation market will grow from approximately ₹1.1 trillion to ₹2 trillion by FY30, driven by competitive entrance examinations and rising demand for government jobs. However, HSBC also highlighted risks such as regulatory changes and competition in the offline education sector, which could impact PhysicsWallah's growth trajectory.