Every medicine packet in India carries a batch number — a short alphanumeric code printed on the strip, box, or label. Most pharmacy owners know it's there, but very few have a system to actually use it. That's a problem, because your batch number is the only thread connecting a sold medicine back to its supplier, its manufacturing date, and its expiry — and without it, you cannot manage expiry, handle recalls, or confidently return stock.
This guide explains how to track medicine by batch number in your Indian medical store, why it matters legally and financially, and how software makes it effortless.
What a Batch Number Actually Tells You
A batch number (also called a lot number or batch code) is printed by the manufacturer and identifies a specific production run. Every medicine in that batch was made at the same time, under the same conditions, using the same raw materials — and it shares the same expiry date.
From a single batch number you can determine: the manufacturer and manufacturing date, the expiry date, and whether the batch has ever been subject to a drug recall. For Schedule H and H1 medicines, recording batch numbers at the point of sale is a legal requirement under the Drugs and Cosmetics Act.
Why You Must Track by Batch — Not Just by Medicine Name
Many pharmacy owners track stock at the medicine level — "I have 200 strips of Amoxicillin 500mg." The problem: those 200 strips might span three different batches with three different expiry dates. If you don't track by batch, you cannot answer: which expiry date should I sell first? Which strips might be affected by a recall?
FEFO: Dispense the Earliest-Expiring Batch First
Once you track multiple batches of the same medicine, you must apply FEFO — First Expiry, First Out. Always dispense from whichever batch expires soonest, regardless of when it arrived. This is different from FIFO (First In, First Out), which is used in general retail but is incorrect for medicines.
At purchase: record every batch separately
When a new invoice arrives, record each medicine's batch number, expiry date, and quantity as a separate inventory record — not combined with existing stock.
On the shelf: earlier expiry at the front
Physically place stock with the nearest expiry date at the front of the rack. New stock goes behind it. Train every staff member on this — it's the most important habit in a pharmacy.
At sale: record the batch number sold
On your retail bill, note which batch number was dispensed. For prescription medicines and Schedule H drugs, this is legally required. For over-the-counter sales, it's best practice.
Handling a Drug Recall with Batch Records
Drug recalls happen more often than most pharmacy owners realise. The Central Drugs Standard Control Organisation (CDSCO) issues recall notices regularly. When a recall happens, you need to know immediately: did I stock this batch? If yes, how much do I still have, and did I sell any — and to whom?
Without batch-level records, answering these questions is impossible. With proper batch tracking, you can run a report in seconds: here is the quantity remaining on shelf, and here are the customer bills where this batch was dispensed.
How to Track Batch Numbers Without Manual Entry
The biggest barrier to batch tracking in small pharmacies is the manual effort. A busy medical store processes 5–10 purchase invoices per week, each with 30–80 line items, each line item having a batch number and expiry date. Entering all of this manually into software every day is not realistic.
AI-powered pharmacy software solves this by reading your purchase invoices automatically. You scan or photograph the invoice — or upload a PDF — and the AI extracts every medicine, batch number, expiry date, quantity, and MRP in seconds. The inventory is updated automatically, with each batch stored separately and sorted by expiry date for FEFO dispensing.
PharmaStok AI does exactly this. Upload any distributor invoice — printed or handwritten — and your batch-level inventory updates automatically. Set expiry alerts to get notified when any batch is approaching expiry, and run batch trace reports instantly when you need them.