The Reliance-backed online healthcare platform remained profitable despite modest revenue growth, while services continued to drive its business.
Reliance-backed Netmeds recorded a largely stable financial performance in FY26, with revenue from operations rising 2.3% to ₹44.7 crore from ₹43.7 crore in FY25. The online healthcare platform remained profitable during the year, reporting a profit of ₹5.5 crore despite modest topline growth.
Netmeds operates across online pharmacy and healthcare services, offering pharmaceutical and healthcare products alongside diagnostics, doctor consultations and other healthcare offerings. The company also generates revenue through marketing and healthcare-related services.
Services continued to form the largest component of Netmeds’ business during FY26. Gross service income stood at ₹46.3 crore, broadly unchanged from ₹46.2 crore in FY25. Meanwhile, revenue from the sale of goods increased 24% to ₹6.03 crore from ₹4.86 crore.
After adjusting ₹7.6 crore towards GST recovered, operating revenue stood at ₹44.7 crore. The company also generated ₹3.24 crore from non-operating sources, taking total income to ₹47.94 crore for the fiscal year.
On the cost side, employee benefit expenses remained the largest expense, increasing 4% to ₹13.7 crore from ₹13.2 crore. Technical service costs declined 12% to ₹9.12 crore, while material costs increased 12% to ₹4.44 crore.
Netmeds also increased its investment in advertising and promotional activities. Marketing expenditure rose 76% to ₹2.9 crore from ₹1.65 crore in FY25. Other overheads, including legal, professional and rent expenses, added ₹12.24 crore.
Total expenditure increased moderately to ₹42.4 crore from ₹41.6 crore in the previous fiscal year. Despite the higher costs, Netmeds remained profitable, although its ₹5.5 crore profit was around 5% lower than the previous year.
The company reported a return on capital employed of 4.5% and an EBITDA margin of 5.66%. Its operating efficiency remained stable, with Netmeds spending approximately ₹0.95 to generate every ₹1 of operating revenue, unchanged from FY25.
Reliance Industries, through Reliance Retail Ventures, acquired a majority stake in Netmeds for around ₹620 crore in cash in August 2020.
Netmeds operates in a competitive online healthcare market alongside Tata 1mg, PharmEasy and Apollo 24/7. Tata 1mg reported ₹2,936 crore in revenue and a consolidated loss of ₹287 crore in FY26, while PharmEasy parent API Holdings reported ₹6,869 crore in revenue.
With services continuing to anchor its business and profitability maintained in FY26, Netmeds enters its next phase with a focus on its online healthcare ecosystem and consumer offerings.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.
