Netmeds’ Financial Growth and Performance in FY26
Netmeds, backed by Reliance, is a smaller entity in the online pharmacy sector when compared to competitors like Tata 1mg and PharmEasy. The company’s operating revenue saw limited growth in the fiscal year ending March 2026, yet it successfully maintained profitability at Rs 5.5 crore throughout the year. Netmeds’ total operational revenue increased slightly by 2.3% in FY26, reaching Rs 44.7 crore from Rs 43.7 crore in FY25, as per its standalone financial reports submitted to the Registrar of Companies (RoC).
Netmeds’ Operational Business Model
Netmeds operates an online healthcare platform that offers a wide range of pharmaceutical and healthcare products, alongside services that include diagnostics and doctor consultations. Additionally, the company earns revenue from marketing and healthcare-related services.
Revenue Breakdown for FY26
Income from services played a significant role in contributing to Netmeds’ revenue in FY26. The gross service income recorded was Rs 46.3 crore, a slight rise from Rs 46.2 crore in FY25. Conversely, revenue from the sale of goods saw a noticeable 24% increase, rising to Rs 6.03 crore from Rs 4.86 crore in the prior fiscal year. After accounting for Rs 7.6 crore related to GST recoveries, Netmeds’ operational revenue for FY26 stood at Rs 44.7 crore.
Moreover, the company earned Rs 3.24 crore from non-operational sources, bringing its total income for the year to Rs 47.94 crore.
Expenditure Overview
Employee benefit expenses emerged as the largest cost for Netmeds, increasing by 4% to Rs 13.7 crore in FY26 compared to Rs 13.2 crore in FY25. On the other hand, technical service costs reduced by 12% to Rs 9.12 crore, while materials costs experienced a 12% rise, amounting to Rs 4.44 crore for the year.
Advertising expenses saw a significant spike, increasing by 76% to Rs 2.9 crore from Rs 1.65 crore in FY25. Other overheads, including legal and professional rents, added Rs 12.24 crore to the company’s total expenditures, which amounted to Rs 42.4 crore, up from Rs 41.6 crore in the previous fiscal year.
Profitability Metrics
Despite moderate top-line growth, Netmeds achieved profitability for FY26 with Rs 5.5 crore, reflecting a 5% decline from FY25. Its Return on Capital Employed (ROCE) and EBITDA margin were recorded at 4.5% and 5.66%, respectively. The company spent roughly Rs 0.95 to generate each rupee of operating revenue, consistent with the figures from FY25.
In August 2020, Reliance Industries Limited, through its wholly-owned subsidiary Reliance Retail Ventures Limited (RRVL), acquired a majority equity interest in Netmeds for approximately Rs 620 crore in cash.
Competitive Landscape
In comparison, Tata 1mg reported a revenue of Rs 2,936 crore along with a consolidated loss of Rs 287 crore in FY26, while PharmEasy’s parent company, API Holdings, posted revenue of Rs 6,869 crore for the same period. Apollo 24/7 also stands out as a significant player in India’s online healthcare and pharmacy arena.