Pharma Distributor and Stockist Margin in India (2026): Wholesale Margin on Medicines, Super Stockist and C&F – with Examples
By the Trumac Healthcare team, Panchkula · PCD pharma franchise company since 2007 · Updated 14 November 2026 · About us · WhatsApp +91 90416 77932
Planning a distribution business? Use the free business plan Excel with PTS as your purchase rate.
Margins along the medicine supply chain
| Level | Role | Usual margin |
|---|---|---|
| Company | Sets MRP, PTR and PTS | – |
| C&F agent | Holds the company’s stock and dispatches to stockists | Commission or handling charge agreed with the company – does not buy the stock |
| Super stockist (where used) | Buys from the company and supplies smaller stockists in a region | A share of the stockist margin agreed with the company – no fixed rule |
| Stockist / distributor (wholesaler) | Buys at PTS, sells to chemists and hospitals at PTR | About 10% on PTR (non-scheduled); 8% on PTS (DPCO scheduled) |
| Chemist (retailer) | Buys at PTR, sells at MRP | 20% of MRP without GST (non-scheduled); 16% on PTR (DPCO scheduled) |
These are common trade norms for branded medicines, not a law, except that ceiling prices of DPCO scheduled medicines leave a fixed room for the trade. Companies can offer more through schemes or cash discounts. See the C&F agent guide for the C&F and super stockist roles.
Stockist margin on ₹100 of MRP
| Step | Non-scheduled medicine | DPCO scheduled medicine |
|---|---|---|
| MRP (including 5% GST) | ₹100.00 | ₹100.00 |
| MRP without GST | ₹95.24 | ₹95.24 |
| PTR – chemist buys at | ₹76.19 (95.24 × 0.80) | ₹82.10 (95.24 ÷ 1.16) |
| PTS – stockist buys at | ₹68.57 (PTR × 0.90) | ₹76.02 (PTR ÷ 1.08) |
| Stockist margin per ₹100 MRP | ₹7.62 (10% of PTR, 11.1% on cost) | ₹6.08 (8% on PTS) |
Try your own numbers in the PTR PTS calculator; the formulas are explained in PTR, PTS and MRP. For the chemist’s side, see medical store profit margin.
Medical agency profit per month – an example with assumed numbers
The figures below are assumptions for illustration, not data from any distributor. Replace them with your own sales, staff and costs.
| Item | Example |
|---|---|
| Monthly sales to chemists at PTR (example) | ₹10,00,000 |
| Gross margin at 10% of PTR | ₹1,00,000 |
| Staff – two people (assumed) | − ₹30,000 |
| Delivery and fuel (assumed) | − ₹15,000 |
| Godown rent (assumed) | − ₹15,000 |
| Software, electricity, misc. (assumed) | − ₹5,000 |
| Interest on ₹5 lakh credit to chemists at 12% a year (assumed) | − ₹5,000 |
| Expiry and breakage (assumed 0.5% of sales) | − ₹5,000 |
| Net before tax (example) | ≈ ₹25,000 (2.5% of sales) |
How distributors raise their margin
- Add generic and PCD ranges bought at a net rate well below PTR – PCD pharma franchise and generic medicine franchise.
- Use trade schemes and prompt-payment discounts – but only for stock you will sell before expiry.
- Collect from chemists on time: every month of extra credit is a cost on your margin.
- Track stock and near-expiry items monthly – stock and sales statement format and expiry return format.
डिस्ट्रीब्यूटर / स्टॉकिस्ट का मार्जिन कितना होता है? (हिंदी में)
ब्रांडेड नॉन-शेड्यूल्ड दवाओं पर स्टॉकिस्ट PTS पर खरीदता है और केमिस्ट को PTR पर बेचता है – मार्जिन PTR का लगभग 10%, यानी ₹100 MRP पर लगभग ₹7.6। DPCO शेड्यूल्ड दवाओं पर PTS पर 8%। यह ग्रॉस मार्जिन है – स्टाफ, डिलीवरी, उधार और एक्सपायरी का खर्च इसी में से निकलता है। ज़्यादा मार्जिन के लिए कई डिस्ट्रीब्यूटर PCD और जेनेरिक रेंज जोड़ते हैं। एजेंसी कैसे शुरू करें: मेडिसिन डिस्ट्रीब्यूटर कैसे बनें।
Frequently asked questions
What is the margin of a pharma distributor in India?
A stockist or distributor of branded (ethical) medicines usually earns about 10% on PTR for non-scheduled medicines – roughly ₹7.6 on every ₹100 of MRP – and 8% on PTS for DPCO scheduled medicines. Schemes, cash discounts and generic or PCD ranges can raise the effective margin.
How is stockist margin calculated?
For non-scheduled medicines PTS = PTR × 0.90, so the stockist keeps 10% of PTR. For DPCO scheduled medicines PTS = PTR ÷ 1.08, so the margin is 8% on PTS. PTR itself is the MRP without GST less the retailer’s margin.
What is a super stockist’s margin in pharma?
There is no fixed rule. A super stockist buys from the company and supplies smaller stockists, and usually earns a part of the stockist margin or an extra discount agreed with the company – often a few per cent.
What is the difference between wholesale and retail margin on medicines?
The retailer (chemist) earns about 20% of the MRP without GST on non-scheduled medicines, or 16% on PTR for DPCO scheduled ones. The wholesaler (stockist) earns about 10% on PTR, or 8% on PTS for scheduled ones.
How much profit does a medical agency make per month?
It depends on sales, staff, delivery and credit. As an illustration only: ₹10 lakh of monthly sales at PTR with a 10% margin gives ₹1 lakh gross; after staff, delivery, rent, credit cost and expiry, about ₹25,000 may remain. Use your own numbers – they will differ.
Is the distributor margin the same as profit?
No – it is a gross margin. Staff, delivery, rent, credit given to chemists, expiry losses and software come out of it, so net profit is much lower, as the example on this page shows.
How can a distributor earn a higher margin?
By adding generic and PCD ranges bought at a net rate well below PTR, using trade schemes on fast movers, collecting payments on time and keeping expiry low.
Starting out: how to start a medical agency · medicine wholesale supplier · all guides.
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