Listed edtech major PhysicsWallah (PW) has acquired an additional 11% stake in UPSC coaching institute Sarrthi IAS for a cash consideration of ₹71.81 Cr, raising its holding in the company from 40% to 51%. The transaction, approved by PW’s board, involves the purchase of 1,100 equity shares and marks the second tranche of its phased acquisition of Guiding Light Education Technologies Private Limited, which operates under the Sarrthi IAS brand.
With its stake now crossing the 50% mark, PhysicsWallah has secured majority control of Sarrthi IAS, turning it from an associate into a subsidiary and allowing PW to consolidate its financials going forward. Under the existing agreement, PhysicsWallah plans to increase its holding to 85% by FY31 through multiple tranches linked to predefined performance milestones.
The latest investment builds on PW’s initial 40% acquisition in Sarrthi IAS, first disclosed ahead of its public listing, with share purchase agreements originally signed in September 2025. Sarrthi IAS reported robust FY26 financials, posting revenue of ₹77 Cr along with a healthy profit for the year, reflecting strong growth in India’s civil services coaching segment.
The move strengthens PhysicsWallah’s push into UPSC and civil services exam preparation, expanding its footprint beyond its core engineering and medical entrance coaching business. Markets, however, reacted cautiously to the announcement, with PhysicsWallah’s shares slipping around 5% following the disclosure. The deal underscores PW’s broader strategy of scaling through acquisitions in high-growth education verticals rather than building them organically.
