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Informist, Thursday, Jun. 11, 2026

By Gunjan Rajput
 

NEW DELHI –  Tata 1mg, the online pharmacy arm of Tata Digital Ltd., plans to reach a tally of 600-700 stores in financial year 2026-27 (Apr-Mar) as the online pharmacy platform accelerates its omnichannel strategy, Rajeev Sharma, vice-president and head of medical affairs at Tata 1mg, said.

"By March 2027, we are looking at 600-700 odd stores," Sharma told Informist on the sidelines of the Associated Chambers of Commerce and Industry of India Pharma Summit 2026.

 

The expansion comes after Tata 1mg ended FY26 with 280 brick-and-mortar stores live across nine clusters. The company also scaled its consumer health brands business to an annual recurring revenue run rate of more than INR 20 billion while remaining profitable. Its core businesses, excluding physical retail investments, turned earnings before interest, tax, depreciation, and amortisation-positive in December, which was sustained through the March quarter.

 

While opening retail outlets requires investment, Sharma said physical pharmacies remain an important channel for consumers. "Retail is not very cheap, but people still flock to retail," he said.

 

The planned expansion comes against the backdrop of growing tensions between online pharmacies and traditional chemists. On May 20, chemists across several states participated in a nationwide strike organised by the All India Organisation of Chemists and Druggists, protesting what they described as predatory discounting by e-pharmacy and quick-commerce medicine delivery platforms.

 

The association has argued that medicine retailing operates under government-regulated pricing and trade margins, leaving conventional pharmacies unable to match discounts offered online.

 

"Retailers earn only 16-20% margin. It is impossible for our people to offer 25-50% discounts like online companies are giving," Jagannath Shinde, president of the All India Organisation of Chemists and Druggists, had told Informist. The strike disrupted operations at many independent pharmacies, although organised pharmacy chains and online platforms continued functioning. Stores operated by Apollo Pharmacy and Tata 1mg in Delhi remained open during the protest.

 

Responding to concerns about discounting, Sharma said the perception that large online pharmacies continue to offer steep price cuts is outdated. "Business will not be sustainable if we provide those kind of discounts. Most reputed online pharmacies or omnichannel pharmacies are not giving those kind of discounts," he said.

 

According to Sharma, prices offered through Tata 1mg's online platform are largely aligned with those at its physical stores. "There could be some single-digit differences here and there, but the differences are not 10% and 25%," he said.

 

Sharma also called for faster implementation of a dedicated regulatory framework for e-pharmacies. A draft set of e-pharmacy rules has been under discussion since 2018, with the industry awaiting formal notification from the government. "The government has to take a position and notify them. The whole e-pharmacy industry is waiting for those to be notified," he said.

 

He added that clearer regulations would help create a level playing field and curb the operations of unregulated players whose practices could damage the reputation of legitimate omnichannel pharmacy businesses. Despite concerns from traditional chemists, Sharma said online pharmacies account for less than 3% of India's pharmacy market, while conventional retail pharmacies continue to dominate with about 97% share.

 

"From awareness point of view, security point of view, and patient safety point of view, we are all collaborating," he said. "The online pharmacy share in the country is less than 3% and 97% is retail."

 

Tata 1mg, a digital healthcare platform that provides a range of services such as booking diagnostic tests and online doctor consultations, also sells and delivers medicines from other manufacturers and drug companies through online orders. The entity was earlier 1mg, before it was acquired by the Tata group in 2021.  End

 

Edited by Avishek Dutta

 

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