Overview
- PhysicsWallah announced on Thursday, June 4, 2026 that it will stop originating student loans through its wholly owned NBFC and instead partner with multiple regulated third‑party NBFCs to meet student financing needs.
- The reversal follows a recent disclosure that the firm had planned an equity infusion of about Rs 120 crore into FinZ Finance and leaves FinZ's strategic future to be decided by the board and regulators, with options reportedly including a sale or licence surrender.
- Company leaders said partner feedback drove the change, arguing PhysicsWallah's core skill is building educational communities and that specialised NBFCs have stronger underwriting and credit controls.
- Markets welcomed the pivot: shares climbed roughly 16–18% intraday after the announcement and the stock touched an intraday high of about Rs 108.45 on the BSE.
- The shift reduces PhysicsWallah's direct credit and balance‑sheet risk and lets it focus on its edtech platform, though board and regulatory outcomes for FinZ will determine how much capital and operational risk the company ultimately sheds.