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. The purchase lifts PW's holding in the company from 40% to 51%, giving it majority control.
The transaction is the second tranche of a shareholders' agreement signed on September 2, 2025, under which PW can acquire up to 85% of Sarrthi IAS's fully diluted equity share capital in six tranches between FY26 and FY31. PW completed the first tranche—a 40% stake—last September at a valuation of about ₹250 Cr.
Sarrthi IAS, founded in June 2023, provides online and offline coaching and test preparation for civil services and other competitive examinations. The company reported turnover of ₹76.52 Cr in FY26, a 169% jump from ₹28.46 Cr the previous fiscal.
Why it matters
The civil services examination segment in India is fragmented, offline-heavy, and still resistant to the consolidation that JEE and NEET coaching have seen over the past five years. By moving to a majority position in a high-growth asset—one that nearly tripled revenue year-on-year—PW is assembling a multi-exam portfolio that spans school curricula, engineering, medical, and now UPSC.
For a freshly listed company that narrowed its consolidated net loss by 76% to ₹69.1 Cr in Q4 FY26 while growing revenue 51% to ₹918.8 Cr, adding a profitable, fast-scaling vertical supports the narrative of disciplined expansion rather than growth-at-all-costs. International partners evaluating India's test-prep market for content distribution or assessment tools now have a clearer view of the consolidator to watch.
