Tata 1mg narrows losses in core healthcare business

Bengaluru: Tata 1mg’s primary healthcare business continued to grow and narrowed its losses in 2025-26 even as its tech arm saw a sharp decline in profitability.

Tata 1mg Health Solutions Pvt. Ltd. announced its turnover ₹2,439.8 crore for fiscal year 2026 (FY26), up 21% from previous year ₹2,016.5 crore a year ago. Net loss narrowed marginally ₹310 crore ₹341.8 crore, according to the annual report of Tata Sons, the investment holding company of the Tata group.

Tata 1mg Technologies Pvt. Ltd. announced its turnover ₹496.1 crore, up 32% ₹375.5 crore a year ago. But after-tax profit fell sharply ₹17.5 crore ₹65.4 crore. Tata Sons’ investment in Tata 1mg Technologies was: ₹1,335 crore.

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In FY26, Tata 1mg’s primary healthcare business reported a turnover of ₹2,439.8 crore, up 21% from the previous year; Its net loss narrowed from ₹341.8 crore to ₹310 crore.

It faces intense competition from other companies such as Tata 1mg, Apollo 24|7, PharmEasy and Reliance Retail’s Netmeds as they expand their offerings in drug distribution, diagnostics and teleconsultation.

Tata 1mg is doubling down on its B2B offerings to improve growth metrics and appeal to corporate customers by selling healthcare plans, co-founder Gaurav Agarwal said.

Tata 1mg is bucking the fast commerce trend by developing operational workarounds to enable medicines to be delivered within 30-60 minutes in major cities.

Tata 1mg is pivotal to Tata Digital’s portfolio, positioning itself as a leading player in online pharmacy and diagnostics, contributing significantly to gross product value.

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key asset

In his message to shareholders, Tata Sons chairman N. Chandrasekaran described Tata 1mg as “India’s top e-pharmaceutical and e-diagnostics company” and placed it among Tata Digital’s core consumer businesses, alongside large format specialist retailer Croma and flash commerce platform BigBasket.

Apollo 24|7 continues to see intense competition from players like PharmEasy and Reliance Retail-owned Netmeds; To drive growth, companies are expanding beyond drug distribution into diagnostics, teleconsultation and chronic care services.

Reliance Retail’s Netmeds Healthcare Ltd reported revenue from operations ₹44.7 crore in FY26, a marginal increase over the previous one. ₹Profit after tax from ₹43.7 billion a year ago ₹5.5 crore ₹5.8 crore, according to Reliance Industries Ltd.’s FY26 subsidiary financial data.

However, while the company primarily provides consulting, technical support and agency services, it also conducts limited offline and online pharmaceutical sales; this makes its financials not directly comparable to those of Tata 1mg Healthcare Solutions.

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In an interview with Mint Gaurav Agarwal, co-founder of Tata 1mg, said that in 2025, the company is doubling down on its business-to-business (B2B) offerings, including the sale of healthcare plans to its corporate customers.

The company is expanding its diagnostic laboratory centers and increasing the availability of its services beyond metro cities as it prepares to raise $300 million in outside capital. Agarwal declined to comment on the progress and timeline of the fundraising.

Agarwal said Tata 1mg is also bucking the trend of fast commerce by developing operational workarounds to distribute medicines in major cities in the range of 30-60 minutes.

1mg raised $40 million through rights acquisition from Tata Digital in September 2022. Tata Digital acquired a strategic stake in 1mg in 2021.

Subsidiary financials also underscore Tata 1mg’s growing importance within Tata Digital, which is being repositioned around a portfolio of financial services, loyalty and category-leading consumer businesses.

Tata Digital said in its latest annual report that it has achieved gross merchandise value (GMV). ₹46,515 crore, highlighting Croma’s performance and Tata 1mg’s leadership position in the online pharmacy and diagnostics space.

Tata Digital reported revenue of: ₹35,990 crore in FY26 ₹Its net loss was Rs 32,188 crore a year ago ₹4,974 crore ₹4,610 crore reflects continued investment in consumer businesses.