Tata 1mg’s revenue nears Rs 2,000 Cr in FY24; losses down by 75%
                     Tata 1mg’s revenue nears Rs 
2,000 Cr in FY24; losses down 
by 75%
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Introduction
• Tata 1mg chased growth during FY22 and FY23 and its collection spiked over two-fold in both fiscal years.  
• But the company appears to have prioritized the bottom line in the fiscal year ending March 2024. 
• As a result, its revenue grew by only 21%, and at the same time it cut down losses by 75% in FY24.
TATA 1mg Financials FY24
• Tata 1mg’s revenue from operations increased to Rs 1,968 crore in FY24 from Rs 1,627 crore in FY23, its 
consolidated financial statements sourced from the Registrar of Companies- stated by Entrackr.
TATA 1mg Revenue Breakdown
• Income from the sale of medicines formed 81.3% of Tata 1mg’s total revenue which increased 24% 
to Rs 1,599 crore in FY24. 
• Lab test fees, patient support programme, advertising, shipping, were other revenue drivers for the 
Gurugram-based firm.
• Prashant Tandon-led company also earned Rs 23 crore from interest, gain of financial assets, and 
other miscellaneous avenues which pushed its total income to Rs 1,991 crore in FY24.
TATA 1mg Expense Breakdown
• Since 1mg operates with inventory, the cost of procurement of medicines accounted for 56% of the 
overall expenditure. 
• This cost grew by just 8.5% to Rs 1,289 crore in FY24.
• Tata 1mg’s spends on employee benefits, information technology, legal, advertising, commissions, 
packaging, fulfillment, and other overheads took its total cost up by 20.4% to Rs 2303 crore in 
FY24.
TATA 1mg FY23-FY24
• The decent scale and controlled cost helped Tata 1mg to reduce losses by 75% to Rs 313 crore in 
FY24 from Rs 1,255 crore in FY23. 
• Its EBITDA margin stood at -10.85% in FY24. On a unit level, Tata 1mg spent Rs 1.17 to earn a rupee 
in the previous fiscal year.
• 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.
• Tata Digital currently holds a 63.5% stake in 1mg which was last valued at 1.25 billion. 
• As per Fintrackr’s estimates, its enterprise value to revenue multiple stood at 4.87X.
Conclusion 
• Tata 1mg, under the Tata Group, shifted focus to cost control due to diminishing returns on high-
cost customer acquisition and poor customer loyalty. 
• This mirrors a broader trend in e-commerce towards targeted, data-driven campaigns over 
indiscriminate discounting. 
• Despite Tata Neu's presence, Tata 1mg is expected to maintain some operational freedom.
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