PhysicsWallah increases Xylem Learning stake to over 77% in Rs 123 crore deal

Edtech firm PhysicsWallah has approved the acquisition of an additional 12.29% stake in its subsidiary Xylem Learning, raising its total shareholding to 77.27%, according to a regulatory filing made on Thursday. The company said its board cleared the transaction through a third amendment to the shareholders’ agreement signed with Xylem Learning and its existing shareholders. As part of the deal, PhysicsWallah will acquire 930 equity shares from current investors for a total cash consideration of Rs 122.9 crore.

As per the filing, PhysicsWallah had entered into a shareholders’ agreement with Xylem Learning in June 2023, which was subsequently amended in June 2023 and February 2025, allowing it to acquire up to 100% equity ownership in phases. Prior to the latest 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 a mix of online and offline formats. The Kerala-headquartered edtech company reported revenue of Rs 322.26 crore in FY25.

The move follows a similar transaction by PhysicsWallah earlier this month in another subsidiary, Utkarsh Classes & Edutech, where it increased its stake from 63.25% to 75.50% by acquiring an additional tranche of shares for Rs 26.5 crore in cash. Over recent years, PhysicsWallah has steadily increased its control over several offline coaching and hybrid education players as part of its inorganic expansion strategy, stating 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, while profit during the period rose 70% to Rs 69.7 crore.