PhysicsWallah, a leading listed edtech player in India, has acquired an additional 11% stake in UPSC coaching platform Sarrthi IAS, boosting its holding to a majority 51% for ₹71.81 crore. This marks the second tranche of a multi-year agreement to acquire up to 85% of Sarrthi IAS by 2031.
- PhysicsWallah's stake in Sarrthi IAS rises from 40% to 51%
- Sarrthi IAS reported a 169% revenue increase in FY26 to ₹76.52 crore
- Deal is part of an agreement to acquire up to 85% stake by FY31
What happened
PhysicsWallah has increased its shareholding in Sarrthi IAS, a UPSC coaching startup, by acquiring an additional 11% stake for ₹71.81 crore. This transaction raises PhysicsWallah's total ownership in Sarrthi IAS from 40% to a controlling 51%. The deal represents the second tranche of a larger agreement signed in September 2025, which allows PhysicsWallah to progressively acquire up to 85% of Sarrthi IAS's fully diluted equity by 2031.
Sarrthi IAS, established in June 2023, offers comprehensive coaching for civil services and other competitive examinations through both online and offline channels. The company's growth trajectory is notable with a reported turnover of ₹76.52 crore in FY26, reflecting an increase of 169% compared to the prior fiscal year. This acquisition follows PhysicsWallah's initial 40% purchase at an approximate valuation of ₹250 crore completed in late 2025.
Why it matters
The acquisition signals PhysicsWallah’s strategic expansion into the civil services exam coaching market, complementing its existing offerings for competitive exams. By securing a majority stake in Sarrthi IAS, PhysicsWallah strengthens its position in one of India’s most sought-after edtech segments, potentially enhancing its competitive edge and revenue streams.
With the civil services exam coaching market growing rapidly, Sarrthi IAS’s strong revenue growth demonstrates significant demand for quality preparation services. PhysicsWallah’s move supports its broader vision to diversify its educational product portfolio and grow its footprint across niche coaching segments, leveraging its brand recognition and financial muscle after going public in November 2025.
What to watch next
Market watchers will be keen to monitor the subsequent tranches of the acquisition as PhysicsWallah aims to increase its ownership up to 85% by 2031. The execution and valuation of future transactions will be closely scrutinized to understand how PhysicsWallah manages this gradual consolidation and integrates Sarrthi IAS’s offerings within its ecosystem.
Additionally, key indicators to watch include the revenue and profitability metrics of both companies as they collaborate, PhysicsWallah’s ability to leverage Sarrthi IAS’s capabilities to offer bundled or enhanced coaching programs, and stock market reactions as the company’s portfolio expands. Strategic developments in the competitive UPSC coaching space will shape PhysicsWallah’s growth trajectory over the coming years.