PhysicsWallah raises stake in Xylem Learning to 77.27% in Rs 123 Cr deal

Edtech firm PhysicsWallah has approved the acquisition of an additional 12.29% stake in its subsidiary Xylem Learning, taking its total shareholding to 77.27%, according to a regulatory filing made on Thursday.

The company’s board cleared the move through a third amendment to the shareholders’ agreement signed with Xylem Learning and its existing shareholders. As part of the transaction, PhysicsWallah will acquire 930 equity shares from existing investors for a total cash consideration of Rs 122.9 crore.

As per the filings, PhysicsWallah had entered into a shareholders’ agreement with Xylem in June 2023, which was subsequently amended in June 2023 and February 2025, to acquire up to 100% equity ownership in the company over multiple phases. Prior to this transaction, PhysicsWallah held 64.98% of Xylem’s fully diluted equity share capital.

Xylem Learning, incorporated in December 2020, operates in the education sector and focuses on preparing students for competitive examinations such as JEE, NEET, and foundation-level courses through online and offline formats. The Kerala-headquartered edtech firm has posted Rs 322.26 crore revenue in FY25.

The transaction follows a similar move by PhysicsWallah in another subsidiary, Utkarsh Classes & Edutech. Earlier this month, the company raised its stake in Utkarsh Classes from 63.25% to 75.50% by acquiring an additional tranche of shares for Rs 26.5 crore in cash. 

Over the past few years, PhysicsWallah has been steadily increasing control over several offline coaching and hybrid education players as part of its inorganic expansion strategy. The company has consistently indicated that such acquisitions are aimed at strengthening its presence in key regional markets and deepening its offline and hybrid education footprint.

PhysicsWallah’s operating revenue grew nearly 26% to Rs 1,051.26 crore in Q2 FY26 from Rs 832.17 crore in Q2 FY25. During the period, its profit rose by 70% to Rs 69.7 crore.