Edtech firm PhysicsWallah has approved the acquisition of an additional 12.29% stake in its subsidiary Xylem Learning, increasing its total shareholding to 77.27%, according to a regulatory filing made on Thursday.
The company’s board approved the transaction through a third amendment to the shareholders’ agreement with Xylem Learning and its existing investors. As part of the deal, PhysicsWallah will acquire 930 equity shares for a cash consideration of ₹122.9 crore.
Phased Path to Full Ownership
PhysicsWallah first entered into a shareholders’ agreement with Xylem Learning in June 2023, with subsequent amendments in June 2023 and February 2025, allowing it to acquire up to 100% ownership in multiple phases. Prior to the latest transaction, PhysicsWallah held 64.98% of Xylem’s fully diluted equity capital.
Strengthening Hybrid and Offline Presence
Founded in December 2020, Kerala-based Xylem Learning focuses on preparing students for competitive exams such as JEE, NEET and foundation-level courses through a mix of online and offline delivery models. The company reported ₹322.26 crore in revenue in FY25, making it one of the larger regional hybrid education platforms.
The acquisition aligns with PhysicsWallah’s broader strategy of expanding its offline and hybrid education footprint across key regional markets through inorganic growth.
Similar Move in Another Subsidiary
Earlier this month, PhysicsWallah increased its stake in Utkarsh Classes & Edutech from 63.25% to 75.50%, investing ₹26.5 crore in cash to acquire additional shares. The company has steadily consolidated ownership across several coaching and hybrid education firms over the past few years.
Strong Financial Momentum
PhysicsWallah’s operating revenue rose nearly 26% year-on-year to ₹1,051.26 crore in Q2 FY26, compared with ₹832.17 crore in the same period last year. Profit for the quarter surged 70% to ₹69.7 crore, reflecting improved scale and operating leverage.
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