PhysicsWallah Acquires Controlling Stake in Sarrthi IAS With ₹71.8 Crore Investment

PhysicsWallah (PW) has approved an investment of ₹71.81 crore to acquire an additional 11% equity stake in Sarrthi IAS, taking its ownership from 40% to 51%. With the completion of the second tranche, Sarrthi IAS will officially become a subsidiary of the listed edtech company, according to a stock exchange filing.

The transaction forms part of PW's long-term acquisition of Guiding Light Education Technologies Private Limited, which operates under the Sarrthi IAS brand. Along with approving the investment, the company's board also approved an addendum to the existing Share Purchase Agreement (SPA) to revise the valuation methodology and purchase consideration for the second tranche, while keeping the remaining terms of the agreement unchanged.

PhysicsWallah first acquired a 40% stake in Sarrthi IAS in 2025 as part of a phased acquisition strategy announced ahead of its public listing. Under the agreement signed in September 2025, PW plans to acquire up to 85% ownership in the company through six tranches between FY26 and FY31, with the valuation linked to an EBITDA-based performance mechanism.

The latest investment reflects PhysicsWallah's strategy of expanding into new education categories beyond its core K-12 learning and competitive examination preparation business. UPSC preparation remains one of India's largest and most competitive education segments, making it an attractive growth opportunity for the company.

Key Developments

Following the latest investment, PhysicsWallah will own a majority stake in Sarrthi IAS, enabling it to consolidate the company's financials as a subsidiary while expanding its presence in civil services coaching.

Particular	Details
Acquiring Company	PhysicsWallah (PW)
Target Company	Sarrthi IAS (Guiding Light Education Technologies Pvt. Ltd.)
Investment Amount	₹71.81 crore
Additional Stake Acquired	11%
Previous Holding	40%
New Shareholding	51%
Transaction Type	Second Tranche Acquisition
Future Acquisition Plan	Up to 85% stake by FY31

The board also approved changes to the valuation methodology for the second tranche while retaining the overall structure of the acquisition agreement.

Company Overview

Founded in 2023, Sarrthi IAS offers both online and offline coaching for the UPSC Civil Services Examination and other government competitive examinations. Despite being a relatively young company, it has demonstrated rapid financial growth over the past three financial years.

According to the stock exchange filing, the company reported ₹76.52 crore in revenue during FY26, a substantial increase from ₹28.46 crore in FY25 and ₹1.04 crore in FY24. Its net worth stood at ₹33.96 crore as of the end of FY26.

Financial Metric	FY24	FY25	FY26
Revenue	₹1.04 crore	₹28.46 crore	₹76.52 crore
Net Worth (FY26)	-	-	₹33.96 crore

The strong revenue growth reflects increasing demand for UPSC preparation services and the company's expanding student base.

Financial and Business Impact

The acquisition strengthens PhysicsWallah's position in India's highly competitive civil services coaching market. By securing majority ownership, PW gains greater operational control over Sarrthi IAS while expanding its education portfolio beyond engineering, medical, and school education.

The phased acquisition structure also allows PhysicsWallah to align future investments with Sarrthi IAS's financial performance through an EBITDA-linked valuation mechanism. This approach helps manage acquisition risk while encouraging sustained business growth.

Business Area	Expected Impact
UPSC Preparation	Stronger market presence
Education Portfolio	Diversification beyond K-12
Revenue Growth	Additional contribution from Sarrthi IAS
Strategic Expansion	Entry into premium government exam segment
Business Integration	Majority ownership enables operational control

The investment also supports PW's strategy of building a diversified education ecosystem spanning multiple competitive examination categories.

Market Impact

India's UPSC coaching market continues to attract significant investment as demand for government job preparation remains strong. By increasing its stake in Sarrthi IAS, PhysicsWallah strengthens its competitive position against established civil services coaching institutes while expanding its reach in the broader test preparation market.

For investors, the acquisition demonstrates PW's continued inorganic growth strategy through targeted investments in fast-growing education companies. The rapid revenue growth reported by Sarrthi IAS may further enhance its strategic importance within PhysicsWallah's expanding edtech portfolio.

Outlook

PhysicsWallah is expected to continue executing its phased acquisition strategy, with the agreement allowing it to increase its ownership in Sarrthi IAS to 85% by FY31, subject to the agreed transaction structure. Going forward, investors will monitor the integration of Sarrthi IAS, student enrollment growth, revenue expansion, and the company's contribution to PhysicsWallah's overall financial performance.

The acquisition also reflects broader consolidation within India's edtech sector, where established education platforms are expanding into specialized learning categories through strategic acquisitions and partnerships.

1. How much has PhysicsWallah invested in Sarrthi IAS?

PhysicsWallah has approved an investment of ₹71.81 crore to acquire an additional 11% stake in Sarrthi IAS.

2. What is PhysicsWallah's stake in Sarrthi IAS after the transaction?

Following the latest investment, PhysicsWallah's shareholding increases from 40% to 51%, making Sarrthi IAS its subsidiary.

3. What does Sarrthi IAS do?

Sarrthi IAS provides online and offline coaching for the UPSC Civil Services Examination and other competitive government examinations.

4. How much revenue did Sarrthi IAS generate in FY26?

According to the company's filing, Sarrthi IAS reported ₹76.52 crore in revenue during FY26.

5. Will PhysicsWallah acquire more stake in Sarrthi IAS?

Yes. Under the agreement signed in 2025, PhysicsWallah plans to acquire up to 85% ownership in Sarrthi IAS through six tranches between FY26 and FY31, subject to the agreed terms.