Tata 1mg IPO likely after FY27, CEO Prashant Tandon says profitability holds the key

Dalal Street saw a flurry of IPOs in 2025 and the momentum continues in 2026. What particularly caught eyeballs, not just of institutional investors but also retail investors, were the listings of household names like Lenskart, Meesho, Groww and Urban Company, among others. Another such name to join the list sometime after March 2027 could be digital healthcare platform Tata 1mg. CEO Prashant Tandon, without committing to an official timeline, asserted that the firm would be ready to start working towards a listing once it turns entirely profitable.

“The company will be ready within a year or two. We would list it as a profitable company, not as a loss-making company. So once we achieve the milestone that we need to, after that the shareholders will take it,” he said in an exclusive interaction with Wion, on the sidelines of the Global Business Summit in New Delhi on February 13.

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Tata 1mg aims for profitability in FY27

When asked how long it would take for Tata 1mg to become profitable, Tandon said while aggressive investment in brick-and-mortar expansion is underway, the core business already turned profitable in December 2025. It gives comfort and confidence that the rest of the business is sustainable and positive, he said.

“And when will we become profitable? In the coming financial year, we will. FY27. By Q4, the entire business, net of all investments, should be. That is what we are targeting,” he told Wion.

Why is Tata 1mg taking the omnichannel route?

Tandon’s comments come at a time when Tata 1mg is eyeing to open 500 stores by the end of 2026. When asked about the rationale behind the shift to omnichannel, he said, having a physical location complements the digital channel. “Everything is digital. The only question is what is the channel of access? It used to be an app and a web. Now, you can walk into a store as well… It is actually working very well for consumer retention. Earlier they were buying only chronic medicines from us. Now they also buy their acute medicines as they need from our brick-and-mortar store.”

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He added that since the firm has its own physical store in an area, it is also able to do 30 minute-deliveries in an economically profitable manner, just like a normal neighborhood store would do. He explained that a typical retail store in a pharmacy can keep about 3,000 to 5,000 stock keeping units (SKUs), which is a specific product variation. Tata 1mg has almost eight lakh SKUs. If one doesn’t get the medicine they need, it would be delivered by evening through the digital network. “Our online channel will ensure you get it from somewhere in the country.”

“So, the business model is actually very strong and solid. And all said and done, 96-97% of India is still getting their medicines offline…Our aspiration is to be one of the leading providers of healthcare products and services, the next phase of our evolution is to move where the world is going, to Omnichannel.”

Global expansion not on the cards yet

Meanwhile, Tata 1mg has ruled out any immediate overseas expansion plans. Tandon said there is significant inbound interest from global markets, however, India currently presents a massive untapped opportunity, with Tata 1mg still holding less than one percent of market share. International expansion is possible long-term, but not in the near future, he clarified.

‘Biopharma may be a turnaround opportunity for India’

Reflecting on the healthcare sector as a whole in India, Tandon said biosimilars and biopharma are turning out to be interesting stories where the world's value pool is moving. “In the budget also, Rs 10,000 crore was announced for biopharma. That is where we needed to find a way to kickstart this ecosystem…Now that the government has articulated at least capital support, I'm very excited. Finally, we might have some innovative molecules come out of India as well,” he said.