Tata group’s digital healthcare platform Tata 1mg has turned EBITDA positive across all its established businesses in FY26, marking a key profitability milestone for one of India’s largest e-health players. The company said its e-pharmacy business reached breakeven during the year, even as it continued to scale operations, while diagnostics and direct-to-consumer (D2C) health products emerged as strong growth and margin drivers.
In diagnostics, Tata 1mg reported over 40% year-on-year growth, with the business crossing an annual recurring revenue (ARR) run rate of more than Rs 600 crore, supported by double-digit EBITDA margins. Its D2C portfolio, comprising health products sold under its own brands, has crossed Rs 200 crore in ARR and remains profitable, underscoring the company’s ability to layer higher-margin businesses on its core pharmacy platform.
Calling FY26 an “inflection point” for the platform, co-founder and chief executive Prashant Tandon said all core businesses turned EBITDA positive in December and sustained that trajectory through the fourth quarter. He added that the benefits of scale are now compounding, translating into better customer experience and stronger unit economics as the company deepens its integrated healthcare model across pharmacy, diagnostics and speciality care.
Alongside its digital scale, Tata 1mg is sharply expanding its physical footprint to strengthen its omnichannel presence and last-mile reach. The company currently operates over 280 retail pharmacy stores clustered across key markets and plans to increase this network to around 500 outlets over the next 12 months through a cluster-based expansion strategy.
On the diagnostics front, the platform operates 18 NABL- and CAP-accredited labs across more than 60 cities and delivers medicines to customers in over 20,000 pincodes, reinforcing its pan-India reach. As the next leg of growth, Tata 1mg plans to enter radiology and specialised testing and is also eyeing institutional partnerships in speciality care, while continuing to invest in integrated services and technology-enabled healthcare delivery.
