PhysicsWallah has approved the acquisition of an additional 11% stake in Sarrthi IAS for Rs 71.81 crore, taking its shareholding in the civil services coaching platform from 40% to 51%. Once completed, Sarrthi IAS will become a subsidiary of the listed edtech company. The second tranche involves the purchase of 1,100 equity shares for cash from existing shareholders.
The transaction follows the shareholder and share-purchase agreements signed in September 2025 between PhysicsWallah, Sarrthi IAS and the company’s promoters. Under that earlier structure, PhysicsWallah planned to acquire up to 85% of the fully diluted equity share capital of Guiding Light Education Technologies, which operates the Sarrthi IAS brand, across six tranches between FY26 and FY31. The latest board approval also covers an addendum revising the valuation methodology and purchase consideration for the second tranche.
Sarrthi IAS, founded in June 2023, provides online and offline coaching and test preparation for civil services and other competitive examinations. It reported turnover of Rs 76.52 crore in FY26, up 169% from Rs 28.46 crore in the previous fiscal year. PhysicsWallah has said the transaction strengthens its presence in the UPSC and civil services preparation segment, an important adjacency for an edtech company that began with JEE, NEET and school-focused learning before expanding into broader exam categories.
The move marks a continuation of consolidation in India’s test-prep market, where larger platforms are using acquisitions to add category depth, faculty brands, offline reach and specialised exam communities. For PhysicsWallah, Sarrthi IAS adds a focused civil-services vertical at a time when listed edtech companies are being measured more closely on growth quality, segment economics and disciplined expansion. The transaction also brings a fast-growing business under majority control while preserving the scope for further stake purchases under the original multi-tranche structure.
PhysicsWallah was founded in 2016 by Alakh Pandey and evolved from a YouTube-led teaching brand into a full-stack edtech platform. The company listed in November 2025 at Rs 145 per share, a 33% premium to its IPO issue price of Rs 109. In Q4 FY26, the company narrowed its consolidated net loss to Rs 69.1 crore from Rs 289.3 crore a year earlier, while operating revenue rose 51% to Rs 918.8 crore. Sources:
