PhysicsWallah Share Price Surges Over 5%; Plans Partial Closure of Lending Business

PhysicsWallah Limited is set to partially close its lending operations after its wholly owned subsidiary, FinZ Finance Private Limited, agreed to transfer a major part of its loan portfolio to Auxilo Finserve Private Limited. 

The loan portfolio covered by the agreement is worth ₹95.79 crore. PhysicsWallah said the transaction amounts to a substantial reduction in FinZ Finance’s lending activities and is expected to result in a partial closure of the business.  

Agreement With Auxilo 

FinZ Finance entered into the deed of assignment with Auxilo Finserve on October 3, 2026. The transfer covers loans and borrowers included under the agreement, with the transition expected to be completed within the next 60 days.  

Auxilo Finserve is an RBI-registered Non-Banking Financial Company. It is primarily focused on the education sector. The consideration for the transaction is ₹95.79 crore.  

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FinZ Finance Contribution 

FinZ Finance started its business operations in February 2026. As of March 31, 2026, the subsidiary reported total income of ₹1.35 crore, representing 0.04% of PhysicsWallah’s total income. 

Its other income stood at ₹1.35 crore, while revenue from operations was ₹0.00 crore. FinZ Finance had a net worth of ₹60.30 crore, equivalent to 1.18% of PhysicsWallah’s net worth. 

The company said operating revenue was negligible as the subsidiary had only recently started its operations. 

Reason Behind the Closure 

PhysicsWallah said the reduction in the loan portfolio is part of a broader strategic realignment. The company plans to focus on its core business and optimise capital allocation. 

Under the proposed structure, lending activities are to be facilitated through established and regulated third-party NBFCs. PhysicsWallah said this approach is intended to reduce balance sheet and credit risks while lowering the scale of lending handled through FinZ Finance.  

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PhysicsWallah Share Price Performance  

As of October 5, 2026, 2:58 pm, PhysicsWallah share price was trading at ₹127.12, a 5.78% increase from the previous closing price. 

Conclusion 

The transfer of ₹95.79 crore of loans marks a significant reduction in FinZ Finance’s lending operations. The transition is expected to conclude within 60 days. 

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