Netmeds reports flat revenue growth of 2.3% in FY26, maintains profitability

Netmeds, the Reliance-backed online pharmacy platform, reported operating revenue of Rs 44.7 crore for FY26, a marginal increase of 2.3% compared to the previous year. The company remained profitable at Rs 5.5 crore, though profitability declined by 5%, reflecting rising costs and competitive pressures in India’s healthcare sector.

Flat revenue and steady profitability

According to Entrackr, Netmeds, the Reliance-backed online healthcare platform, reported operating revenue of Rs 44.7 crore for the financial year ending March 2026 (FY26), a marginal increase of 2.3% from Rs 43.7 crore in FY25. Despite the slow revenue growth, the company maintained profitability, reporting Rs 5.5 crore in profit for FY26, though this represents a 5% decline from the previous year.

The company’s gross service income for FY26 stood at Rs 46.3 crore, while revenue from the sale of goods—including pharmaceutical and healthcare products—saw a 24% increase, reaching Rs 6.03 crore. Non-operating income contributed an additional Rs 3.24 crore, bringing Netmeds’ total income to Rs 47.94 crore.

Costs and operational efficiency

Netmeds’ total expenditure for FY26 was Rs 42.4 crore, with employee benefit expenses remaining the largest cost centre. These expenses rose 4% to Rs 13.7 crore, accounting for a significant portion of the company’s outlay. Advertising and promotional expenditure surged 76% to Rs 2.9 crore, while the cost of materials increased 12% to Rs 4.44 crore. Technical service costs, however, declined by 12% to Rs 9.12 crore.

The company’s return on capital employed (ROCE) for FY26 was 4.5%, while its EBITDA margin stood at 5.66%. Netmeds spent Rs 0.95 to earn each rupee of operating revenue, reflecting modest operational efficiency in a competitive market.

Competitive landscape

Netmeds’ performance contrasts with its larger competitors in India’s online pharmacy sector. According to Entrackr, Tata 1mg reported revenue of Rs 2,936 crore in FY26 but continued to operate at a loss, posting a consolidated loss of Rs 287 crore. Similarly, PharmEasy’s parent company, API Holdings, reported revenue of Rs 6,869 crore for the same period.

Reliance Retail Ventures Limited (RRVL) acquired a majority stake in Netmeds in August 2020 for approximately Rs 620 crore, integrating it into its broader retail and healthcare strategy.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Netmeds’ FY26 results reflect a business prioritizing stability over aggressive growth. The marginal revenue increase and modest profitability suggest a cautious approach, likely aimed at maintaining operational control in a sector where competitors are burning cash to scale. While Tata 1mg and PharmEasy report revenues in the thousands of crores, their continued losses highlight the trade-offs between growth and profitability in India’s online pharmacy space.

For founders, Netmeds’ ability to remain profitable—even if narrowly—is a notable achievement in a market where unit economics are challenging. Its focus on pharmaceutical sales and diagnostics, rather than subsidized services, may be a differentiating factor. However, the 5% decline in profitability and rising costs, particularly in employee benefits and advertising, signal potential pressure points.

The disparity between Netmeds and its competitors also raises questions about the sustainability of growth-at-all-costs strategies in healthcare. While larger players leverage deep pockets to capture market share, Netmeds’ reliance on organic growth and cost control could position it as a resilient, if slower-moving, player. For startups in similar sectors, the key takeaway may be the viability of profitability as a north star—even if it means sacrificing rapid expansion.

Key takeaways

• Netmeds’ operating revenue remained nearly stagnant in FY26, growing just 2.3% to Rs 44.7 crore.
• The company remained profitable at Rs 5.5 crore, but profitability declined by 5% year-over-year.
• Gross service income was Rs 46.3 crore, while revenue from product sales saw a 24% increase.
• Employee benefit expenses were the largest cost centre, rising 4% to Rs 13.7 crore.
• Netmeds’ EBITDA margin and ROCE were 5.66% and 4.5%, respectively, reflecting modest operational efficiency.
• Competitors in the online pharmacy space, such as Tata 1mg and PharmEasy, reported far higher revenues but continued to post losses.

FAQ

What was Netmeds’ revenue in FY26?

Netmeds reported operating revenue of Rs 44.7 crore in FY26, a 2.3% increase from the previous year.

Did Netmeds remain profitable in FY26?

Yes, Netmeds reported a profit of Rs 5.5 crore in FY26, though this was a 5% decline compared to FY25.

How does Netmeds’ profitability compare to its competitors?

Netmeds remained profitable in FY26, while competitors like Tata 1mg and PharmEasy reported significant losses despite higher revenues.

What were Netmeds’ major expenses in FY26?

Employee benefit expenses were the largest cost centre, rising 4% to Rs 13.7 crore. Advertising and promotional spending also surged 76% to Rs 2.9 crore.

What is Netmeds’ EBITDA margin and ROCE for FY26?

Netmeds’ EBITDA margin was 5.66%, and its return on capital employed (ROCE) was 4.5% in FY26.

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