Get all your news in one place.
100's of premium titles.
One app.
Start reading
The Economic Times
The Economic Times

Tata 1mg turns Ebitda positive across core units as diagnostics crosses Rs 600 crore in ARR

Tata 1mg said it has turned Ebitda positive across all its established businesses in FY26, marking a key profitability milestone for one of India's largest digital healthcare platforms, as it accelerates expansion across pharmacy, diagnostics and speciality care.

The company said its diagnostics business crossed an annualised revenue run rate of more than Rs 600 crore during the year, growing over 40 per cent year-on-year while sustaining double-digit Ebitda margins.

Tata 1mg now operates 19 NABL-accredited labs serving 70 cities, with its National Reference Lab accredited by the College of American Pathologists (CAP).

"The performance marks the culmination of a decade of building an integrated healthcare model that few players in India have attempted across these many verticals simultaneously," the firm said in a statement.

Tata 1mg's ePharmacy business, which the company said is ranked 1 in India, achieved breakeven during the year while continuing to expand scale. Express medicine delivery within 30-60 minutes is now available across 10 cities.

The company's Speciality Pharma business, spanning patient support programmes, adult vaccination, cancer care and obesity management, grew about 65 per cent in FY26, while its direct-to-consumer health products business crossed Rs 200 crore ARR and remained profitable, the company said.

Tata 1mg also expanded its offline retail presence to more than 280 stores across nine clusters and plans to increase that network to more than 500 stores over the next 12 months as part of its omnichannel strategy.

"All our core businesses turned Ebitda positive in December and sustained that momentum through Q4," its co-founder and Chief Executive Prashant Tandon said, calling FY26 an "inflection point" for the company's integrated healthcare model.

The company said it continues to invest in AI-led healthcare tools and data-driven health services. Its AI-powered insights platform, Pulse, is now used by more than 75 pharmaceutical companies, while consumer-facing products such as Health Insights Hub and Family Hub are aimed at expanding personalised and preventive healthcare offerings.

Tata 1mg said future growth would focus on faster pharmacy deliveries, diagnostics expansion into radiology and specialised testing, speciality care partnerships and AI-driven personalisation.

"This year has been a real inflection point. All our core businesses turned Ebitda positive in December and sustained that momentum through Q4. This is the outcome of a decade of building an integrated healthcare model, and we are now seeing that model compound, with scale translating into both better customer experience and stronger unit economics," Tandon said.

"We operate in a very large market, where despite being a top player, we are not even 1 per cent of the total market still. This gives us tremendous confidence and excitement as we work towards the phase ahead. Our vision is to build India's most trusted integrated, omnichannel healthcare platform."

Alongside its commercial milestones, the company continues to invest in technology and AI as a core competitive differentiator. Its Health Insights Hub, along with capabilities like Family Hub, are enabling a more comprehensive and longitudinal view of consumer health, driving more personalised, predictive, and preventive healthcare experiences and outcomes.

The company's AI-powered insights platform, Pulse, is now being actively used by over 75 pharmaceutical companies, reflecting Tata 1mg's growing role as a health intelligence provider to the broader Indian pharma ecosystem.

Looking ahead, Tata 1mg's expansion over the next 12 to 24 months will be anchored on a cluster-driven strategy, bringing all its services together across key geographies and deepening its integrated supply chain.

The company has identified faster pharmacy deliveries, diagnostics expansion into radiology and specialised tests, institutional partnerships in speciality care, and AI-first personalisation as the primary growth enablers for FY27 and beyond.

"We see healthcare evolving towards being more personalised, predictive, and preventive, with trust at its core. Over the next three to five years, we aim to build India's most trusted integrated, omnichannel healthcare platform and play a meaningful role in enabling that shift," Tandon said.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.