Reliance-backed online healthcare platform Netmeds remained profitable in FY26, even as its revenue saw only a small increase during the year.
The online pharmacy and digital healthcare company reported revenue from operations of Rs 44.7 crore in FY26, up 2.3% from Rs 43.7 crore in FY25.
Netmeds posted a profit of Rs 5.5 crore during the fiscal year, continuing its profitable run despite limited growth in its overall revenue.
The company operates across several healthcare segments, including online pharmacy, diagnostic services, teleconsultation and healthcare products. It also earns money through healthcare services and marketing-related activities.
Services Continue to Drive the Business
Services remained the biggest part of Netmeds’ business during FY26.
The company reported gross service income of Rs 46.3 crore, almost unchanged from Rs 46.2 crore in FY25.
However, its product business saw better growth during the year.
Revenue from the sale of goods increased 24% to Rs 6.03 crore from Rs 4.86 crore in FY25.
Netmeds reported operating revenue of Rs 44.7 crore during FY26. It also earned Rs 3.24 crore from non-operating income, taking its total income for the year to Rs 47.94 crore.
Higher Spending on Marketing
Netmeds increased its spending on advertising and promotions during FY26 as it worked on improving brand visibility and reaching more customers.
Advertising and promotional expenses jumped 76% to Rs 2.9 crore from Rs 1.65 crore in FY25.
The company also spent Rs 12.24 crore on other overhead costs, including legal, professional and rental expenses.
Overall, Netmeds’ total expenditure increased slightly to Rs 42.4 crore in FY26 from Rs 41.6 crore in the previous year.
Despite the higher costs, the company remained profitable.
However, its profit declined by around 5% year-on-year, showing that the rise in expenses put some pressure on its bottom line.
Profitability Remains Positive
Netmeds reported a return on capital employed (ROCE) of 4.5% during FY26.
Its EBITDA margin stood at 5.66%, showing that the company continued to generate positive operating earnings.
Operational efficiency also remained largely stable.
Netmeds spent around Rs 0.95 to generate every Re 1 of operating revenue in FY26, almost the same level as the previous year.
This means the company’s cost structure did not change much even though it increased spending in areas such as marketing.
Reliance’s Entry Into Digital Healthcare
Netmeds became part of the Reliance ecosystem in August 2020.
Reliance Industries, through Reliance Retail Ventures Ltd. (RRVL), acquired a majority stake in the online healthcare company for around Rs 620 crore.
The acquisition was part of Reliance’s larger push into digital healthcare and the fast-growing e-pharmacy market in India.
Since then, Netmeds has continued to operate across online pharmacy, healthcare services and related digital offerings.
FY26 was therefore a relatively stable year for Netmeds. Revenue growth remained modest and profit slipped slightly, but the company continued to stay profitable while maintaining steady operational efficiency.
As India’s digital healthcare market continues to grow, Netmeds’ next focus will be on expanding its services, improving customer reach and finding new ways to grow revenue without putting too much pressure on profitability.
