Tata 1mg revenue nears Rs 2,400 Cr in FY25, trims losses

Tata 1mg, the digital healthcare platform backed by Tata Digital, continued its growth trajectory in the fiscal year ending March 2025 while straining its losses.

Tata 1mg’s consolidated revenue rose 22% to Rs 2,392 crore in FY25 from Rs 1,968 crore in FY24, according to Tata Sons’ Annual Report for the fiscal year.

Tata 1mg is a health tech startup for online orders of allopathic, ayurvedic, homeopathic medicines, vitamins, nutrition supplements, and other health products, delivered to the home. 1mg’s revenue was split across two entities: Tata 1mg Technologies, which clocked Rs 2,016.5 crore, and Tata 1mg Healthcare Solutions, which contributed Rs 375.5 crore in FY25.

The company's total cost rose by 17% to Rs 2682 crore in FY25, up from Rs 2303 crore in FY24. The expense breakdown, however, was not available.

The Gurugram-based company posted a consolidated loss of Rs 276 crore in FY25, 12% lower than the Rs 313 crore loss reported in FY24. In comparison, its profit before tax (PBT) stood at Rs 290 crore. On a unit basis, the company spent Rs 1.12 to earn a rupee of operating revenue in FY25.

On the asset side, Tata 1mg reported total assets of Rs 2,025 crore at the end of FY25 while its total liabilities reached Rs 1,190 crore.

In the e-health space, Tata 1mg competes with Reliance-backed Netmeds, PharmEasy, and Apollo 24/7. Netmeds benefits from Jio's extensive network. PharmEasy, despite recent financial challenges, maintains its strong position with integrated services spanning diagnostics, pharmacy, and consultations. Apollo 24/7 leverages the strong brand and offline presence of Apollo Hospitals to gain market share.

Tata Digital acquired a 55% stake in 1mg in June 2021 but since then it gained around 8.5% additional stake in the e-medicine platform. According to TheKredible, Tata Digital currently holds a 63.5% stake in 1mg which was last valued at 1.25 billion.

Tata Digital reported a standalone revenue of Rs 546.9 crore and a loss of Rs 827.5 crore in FY25, indicating the heavy burn continued in its digital commerce bets including 1mg and other verticals such as BigBasket and Cult.fit and the recently launched Tata Neu. Tata Digital's ventures, despite their size, are still in investment mode. This reflects their long-term goal to create a comprehensive digital ecosystem for Indian consumers, covering commerce, healthcare, finance, and wellness.