PhysicsWallah will increase its stake in UPSC coaching platform Sarrthi IAS to 51%, making the civil services education company its subsidiary.
Edtech company PhysicsWallah has approved the acquisition of an additional 11% stake in civil services coaching platform Sarrthi IAS for Rs 71.81 crore, strengthening its presence in India’s competitive exam preparation market.
The transaction will raise PhysicsWallah’s shareholding in Guiding Light Education Technologies Private Limited, which operates Sarrthi IAS, from 40% to 51%, giving it majority ownership.
Majority Stake to Make Sarrthi IAS a Subsidiary
According to a stock exchange filing, PhysicsWallah will purchase 1,100 equity shares in cash from existing shareholders.
Following completion of the transaction, Sarrthi IAS will officially become a subsidiary of PhysicsWallah.
The company’s board has also approved an addendum to the original share purchase agreement, revising the valuation methodology and purchase price for the second tranche of the acquisition.
PhysicsWallah clarified that the revised terms apply only to the current tranche, while future acquisitions will continue under the existing EBITDA-based valuation framework.
Long-Term Acquisition Plan
The investment forms part of a broader agreement signed in September 2025 between PhysicsWallah, Sarrthi IAS, and its promoters.
Under the agreement, PhysicsWallah has the option to acquire up to 85% of the company through six tranches between the 2025–26 and 2030–31 financial years.
The company completed the first phase by acquiring a 40% stake, with additional purchases expected under the existing transaction agreements.
PhysicsWallah said the acquisition aligns with its long-term strategy of expanding its presence in the UPSC and civil services examination preparation segment.
Strengthening Presence in UPSC Preparation
Sarrthi IAS provides both online and offline coaching for the Union Public Service Commission (UPSC) civil services examination, along with preparation for other competitive exams.
Founded in June 2023, the company has witnessed rapid growth over the past three financial years.
Its turnover increased from Rs 1.04 crore in FY24 to Rs 28.46 crore in FY25 before reaching Rs 76.52 crore in FY26.
The company reported a net worth of Rs 33.96 crore with a paid-up share capital of Rs 1 lakh.
Transaction Details
PhysicsWallah stated that the acquisition is not a related-party transaction and that neither its promoters nor promoter group companies have any financial interest in Sarrthi IAS.
The company added that a member of its key management serves as a nominee director on Sarrthi IAS’s board, while the transaction has been conducted at arm’s length and supported by an independent valuation report.
No government or regulatory approvals are required to complete the acquisition.
Classification Difference
While the latest filing states Sarrthi IAS will become a subsidiary after PhysicsWallah’s stake reaches 51%, the company’s financial statements for the nine months ended December 2025 had already classified Sarrthi IAS as a subsidiary following the September 2025 transaction.
The latest filing does not explain the difference in classification, although the earlier disclosure stated that PhysicsWallah had obtained control of the business at that stage.
