Tata 1mg Business Model of Online Medicines, Lab Tests and Stores
How Tata 1mg earns from medicines, lab tests, doctors and its own stores.
Key Takeaways
- FY26 revenue of the two Tata 1mg companies was ₹2,935.89 crore.
- Their combined net loss was ₹292.45 crore in FY26.
- Diagnostics passed ₹600 crore in annualised revenue in FY26.
- The Tata group owned 67.96% of both companies at 31 March 2026.
Table of Contents 11 sections
- Tata 1mg at a glance
- What Tata 1mg does
- How the Tata 1mg business model makes money
- Diagnostics and specialty pharma at Tata 1mg
- Tata 1mg's Business Model Canvas
- Tata 1mg revenue and profit over two years
- Tata 1mg's journey so far
- Who Tata 1mg competes with
- Challenges Tata 1mg faces
- Conclusion on the Tata 1mg business model
- FAQs
The Tata 1mg business model is built on selling medicines and health products online and in its own pharmacies, running lab tests through its own labs, and offering doctor consultations. Most of its money comes from selling the medicines it buys and stocks.
Tata 1mg books its revenue in two companies. Together they earned ₹2,935.89 crore in FY26 (the year to March 2026), up from ₹2,392.01 crore in FY25, and posted a combined net loss of ₹292.45 crore. The Tata group owns 67.96% of both through Tata Digital.
Tata 1mg at a glance
| Item | Details |
|---|---|
| What it does | Online pharmacy, lab tests, doctor consultations, pharmacy stores and services for companies |
| Founded | 2015, headquartered in Gurugram |
| Co-founders include | Prashant Tandon (CEO) and Gaurav Agarwal (CTO) |
| Owner | Tata group, 67.96% through Tata Digital (31 March 2026) |
| FY26 revenue | ₹2,935.89 crore (two companies combined) |
| FY26 net result | Combined net loss of ₹292.45 crore |
| Listing status | Unlisted private companies |
What Tata 1mg does
Tata 1mg started as a medicine information platform and now sells allopathic, ayurvedic, homeopathic and generic medicines, vitamins and supplements. A customer searches for a medicine or uploads a prescription, places an order and gets it delivered home. In 10 cities it offers medicine delivery in 30 to 60 minutes.
Its diagnostics arm collects blood and other samples at home in more than 70 cities and tests them in its own NABL-accredited labs. Customers can also talk to registered doctors online, walk into a Tata 1mg pharmacy store, or buy a Care Plan membership. For organisations it runs corporate health programmes, hospital pharmacies and Pulse, a data platform that more than 75 pharmaceutical companies use for market insights.
How the Tata 1mg business model makes money
Tata 1mg earns from five kinds of activity:
- Medicine and health product sales. The company buys most of its medicines directly from makers or licensed distributors, stocks them in its warehouses and sells them online and in stores.
- Lab test fees. Customers pay for each test or health package. Diagnostics passed an annualised revenue run rate of more than ₹600 crore in FY26.
- Doctor consultations and Care Plan. Fees for online consultations and a paid membership that gives members extra benefits.
- Services for organisations. Corporate health check-ups, occupational health centres, insurance checks and hospital pharmacy management.
- Pharma analytics. Pharmaceutical companies use its Pulse platform for market data.
Tata 1mg revenue FY26 by company
The Tata Sons annual report gives the turnover of each Tata 1mg company, without a split by service. Tata 1mg Healthcare Solutions booked ₹2,439.77 crore in FY26, or 83.1% of the total. Tata 1mg Technologies booked ₹496.12 crore, or 16.9%.
Diagnostics and specialty pharma at Tata 1mg
Lab tests are a separate business inside Tata 1mg. In FY26 diagnostics revenue grew more than 40% year on year, with double-digit EBITDA margins, according to the company. Specialty pharma, which covers patient support programmes, adult vaccination, cancer care and obesity care, grew about 65% in the same year.
Tata 1mg's Business Model Canvas
Tata 1mg revenue and profit over two years
Combined revenue of the two companies rose 22.7% in FY26, from ₹2,392.01 crore to ₹2,935.89 crore. Healthcare Solutions grew 21.0% and Technologies 32.1%.
On the bottom line, Healthcare Solutions posted a net loss of ₹309.99 crore in FY26, against ₹341.81 crore in FY25. Technologies posted a net profit of ₹17.54 crore, against ₹65.37 crore a year earlier. Added together, the net loss was ₹292.45 crore in FY26 and ₹276.44 crore in FY25.
The company also tracks EBITDA, which leaves out interest, tax, depreciation and amortisation. It says its core business lines turned EBITDA positive in December 2025, and that its e-pharmacy reached breakeven during FY26. Net loss is still reported because it counts all costs.
Tata 1mg ownership
Tata Digital, the Tata group's consumer internet company, took a majority stake in 1mg in June 2021, and the brand became Tata 1mg. In September 2022 the company raised $40 million in a round led by Tata Digital. At 31 March 2026 the Tata group held 67.96% of both Tata 1mg companies.
Tata 1mg's journey so far
| When | What happened |
|---|---|
| 2015 | 1mg is spun off from HealthKart as a separate company |
| June 2021 | Tata Digital buys a majority stake |
| September 2022 | Raises $40 million in a round led by Tata Digital |
| FY24 | Consolidated revenue from operations of ₹1,968 crore and net loss of ₹313 crore |
| December 2025 | Core business lines turn EBITDA positive |
| FY26 | Two companies post combined revenue of ₹2,935.89 crore |
Who Tata 1mg competes with
In online medicines Tata 1mg competes with PharmEasy, Apollo 24|7, Netmeds (owned by Reliance Retail) and Truemeds. In lab tests it also competes with diagnostic chains that offer home sample collection.
Challenges Tata 1mg faces
- Net loss. The two companies had a combined net loss of ₹292.45 crore in FY26.
- Past losses on the balance sheet. Tata 1mg Healthcare Solutions had negative reserves and surplus of ₹1,537.94 crore at 31 March 2026.
- Rules for online pharmacies. The government published draft e-pharmacy rules in August 2018, and they have not been made final.
Conclusion on the Tata 1mg business model
Tata 1mg sells medicines, lab tests and doctor consultations through its app, website and pharmacy stores, and serves companies, hospitals and pharma firms as well. Most of its revenue comes from selling medicines it buys and stocks, and it also runs lab tests in its own labs.
Its two companies booked ₹2,935.89 crore of revenue in FY26 with a combined net loss of ₹292.45 crore, and the Tata group owns 67.96% of both through Tata Digital.
