SULA - Sula Vineyards
📢 Recent Corporate Announcements
Sula Vineyards reported a challenging Q3 FY26, primarily due to a tactical decision to significantly destock in Karnataka to right-size channel inventory. Despite this, the Wine Tourism segment delivered record performance with 34% YoY revenue growth and a 15% increase in footfalls. The company's premiumization strategy remains on track, with 'The Source' range now contributing 11% of Own Brand sales. Management noted that the India-EU FTA's duty reductions will only impact wines priced above a certain threshold, leaving 95% of Sula's current portfolio protected.
- Wine Tourism revenue grew 34% YoY, with room capacity increasing 50% to 154 keys.
- The Source premium range share increased from 8.5% to 11% of Own Brands in Q3.
- CSD channel sales surged 40% YoY during the first nine months of FY26.
- Maharashtra and Telangana markets have returned to growth following previous disruptions.
- India-EU FTA duty cuts apply only to wines above €2.5 CIF, protecting 95% of Sula's portfolio volume.
Sula Vineyards has officially released the audio recording of its earnings conference call held on February 9, 2026. The call addressed the company's un-audited financial results and operational performance for the third quarter and nine months ended December 31, 2025. This disclosure is a routine regulatory requirement under SEBI Listing Obligations. Investors can access the recording via the company's investor relations website to understand management's perspective on recent performance.
- Earnings call conducted on February 9, 2026, regarding Q3 and 9M FY26 results.
- Audio recording made available on the company's official investor relations portal.
- Compliance filing submitted under Regulation 30 of SEBI (LODR) Regulations, 2015.
Sula Vineyards Limited has updated its list of Key Managerial Personnel (KMP) authorized to determine the materiality of events and information as per SEBI Regulation 30(5). The authorized officials include the CEO & MD Rajeev Samant, CFO Abhishek Kapoor, and Company Secretary Gayathri Iyer. This is a standard administrative update to ensure compliance with stock exchange listing obligations. The announcement does not impact the company's financial performance or business strategy.
- Designated 3 Key Managerial Personnel to determine materiality of events for stock exchange disclosures.
- Authorized officials include CEO Rajeev Samant, CFO Abhishek Kapoor, and CS Gayathri Iyer.
- Update is compliant with Regulation 30(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Contact details provided for investor relations via email and a dedicated Mumbai-based phone line.
Sula Vineyards Limited has appointed Ms. Gayathri Iyer as the Company Secretary and Compliance Officer, effective February 6, 2026. Ms. Iyer joins the company as a Key Managerial Personnel (KMP) and a member of the Senior Management team. She brings over 12 years of professional experience in corporate secretarial functions, having previously worked with major firms like Mahindra & Mahindra and Sun Pharmaceuticals. This appointment is intended to strengthen the company's governance and regulatory compliance framework.
- Ms. Gayathri Iyer appointed as Company Secretary and Compliance Officer effective February 6, 2026
- Brings over 12 years of experience in secretarial compliance across industries like Automobiles and Pharmaceuticals
- Previously associated with reputable organizations including Mahindra and Mahindra Limited and Sun Pharmaceuticals
- The appointment was recommended by the Nomination and Remuneration Committee and approved by the Board
Sula Vineyards reported a 9.7% YoY decline in Q3 FY26 revenue to INR 196 Cr, largely attributed to one-time tactical destocking in Karnataka. EBITDA saw a sharp decline of 39.8% to INR 32 Cr, with margins contracting to 16.3% from 24.5% last year. Conversely, the Wine Tourism segment achieved record revenue of INR 22 Cr, driven by a 17% increase in footfalls and the expansion of 'The Haven' resort. Management remains optimistic about a Q4 recovery, citing a rebound in the Maharashtra market and normalized operations in Telangana.
- Revenue from operations decreased 9.7% YoY to INR 196 Cr due to inventory correction in Karnataka.
- Wine Tourism revenue reached an all-time high of INR 22 Cr, growing 33.7% YoY.
- EBITDA margins compressed significantly by 816 bps to 16.3% during the quarter.
- Elite & Premium wine share remained stable at 80%, with 'The Source' range showing double-digit growth.
- Room capacity increased by 50% to 154 keys following the launch of Phase 2 of The Haven by Sula.
Sula Vineyards reported a weak set of numbers for Q3 FY26, with consolidated net profit plunging 67.6% year-on-year to ₹9.10 crore. Revenue from operations also declined by 9.7% YoY to ₹195.68 crore, compared to ₹216.64 crore in the same quarter last year. The company's profitability was further squeezed by a ₹1.70 crore exceptional impairment loss on brands and goodwill. While there was a seasonal sequential improvement from Q2, the overall nine-month performance shows a sharp decline in earnings compared to the previous fiscal year.
- Consolidated Revenue from operations fell 9.7% YoY to ₹195.68 crore in Q3 FY26.
- Net Profit declined sharply by 67.6% YoY to ₹9.10 crore from ₹28.06 crore.
- Recognized an exceptional impairment loss of ₹1.70 crore related to intangible assets and goodwill.
- Nine-month (9M FY26) net profit stands at ₹17.06 crore, down from ₹57.17 crore in 9M FY25.
- Basic EPS for the quarter dropped to ₹1.08 from ₹3.32 in the year-ago period.
Sula Vineyards Limited has announced its earnings conference call to discuss financial results for the quarter and nine months ended December 31, 2025. The call is scheduled for Monday, February 9, 2026, at 4:00 PM IST. Top management, including MD & CEO Rajeev Samant and CFO Abhishek Kapoor, will be present to address investor queries. This call is particularly relevant as it covers the peak holiday and tourism season for the company.
- Earnings call scheduled for February 9, 2026, at 4:00 PM IST.
- Focus on financial performance for Q3 and 9M FY 2026 ending December 31, 2025.
- Management representation by MD & CEO Rajeev Samant and CFO Abhishek Kapoor.
- Primary dial-in numbers provided are +91 22 7115 8013 and +91 22 6280 1188.
Sula Vineyards has clarified that the India-EU Free Trade Agreement (FTA) will have a limited impact on the domestic wine industry due to a Minimum Import Price (MIP) of €2.5 per 750 ml bottle. This threshold ensures that over 90% of Indian wines, which retail below ₹1,500, remain protected by the existing 150% import duty. For wines above the MIP, duty reductions are expected to be phased over 7-10 years, starting from ~75% after the first year and tapering to 20-30%. The company believes its market leadership and brand loyalty will safeguard its portfolio, with only the ultra-premium RASA range facing potential competition.
- Minimum Import Price (MIP) of €2.5 per 750 ml bottle CIF protects wines retailing below ₹1,500.
- Import duties for premium wines to be reduced from 150% to 20-30% over a 7-10 year phased period.
- Sula maintains over 50% market share in the domestic premium wine segment with 60+ labels.
- Over 90% of the Indian wine market is shielded from the proposed duty reductions.
Sula Vineyards has addressed a clarification sought by the National Stock Exchange regarding its financial submissions for the quarter ended September 30, 2025. The company had inadvertently filed its XBRL data under the 'Half Yearly' reporting category instead of the 'Quarterly' category. A rectified version of both Standalone and Consolidated Financial Results has now been submitted to the NEAPS portal. This correction is purely administrative and does not alter the previously reported financial performance numbers.
- NSE sought clarification on January 12, 2026, regarding XBRL filing discrepancies for the September 2025 quarter.
- The error involved selecting the incorrect 'Reporting Type' parameter during the initial digital submission.
- Company has filed revised Standalone and Consolidated XBRL reports on January 14, 2026.
- The rectification ensures full compliance with Regulation 33 of SEBI (LODR) Regulations, 2015.
Sula Vineyards Limited has submitted its compliance certificate for the quarter ended December 31, 2025, as required under SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the company's Registrar and Transfer Agent (RTA), KFin Technologies Limited, confirms the processing of dematerialization and rematerialization requests. This filing ensures that the company is in compliance with regulatory standards regarding the maintenance of electronic share records. Such disclosures are standard procedural requirements for all listed companies in India and do not reflect changes in business operations.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Transfer Agent (RTA) KFin Technologies Limited.
- Adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
- Verification of dematerialized and rematerialized securities furnished to NSE and BSE.
Sula Vineyards Limited has responded to clarification requests from the NSE and BSE regarding a significant increase in trading volume observed on December 24 and 26, 2025. The company officially stated that it has no undisclosed price-sensitive information or impending announcements that would impact trading activity. Management clarified that the volume movement is purely market-driven and not attributable to any internal developments. This routine disclosure aims to maintain transparency and safeguard investor interests following exchange surveillance alerts.
- Responded to NSE and BSE surveillance inquiries dated December 24 and 26, 2025
- Confirmed full compliance with SEBI Regulation 30 regarding timely disclosures
- Stated no unpublished price-sensitive information (UPSI) is being withheld
- Attributed the significant volume spurt to market-driven factors beyond company control
Sula Vineyards Limited has announced the resignation of Ms. Shalaka Koparkar from the role of Company Secretary and Compliance Officer, effective December 24, 2025. The resignation was tendered on September 22, 2025, citing personal reasons, and the company has already identified a replacement. As a Key Managerial Personnel (KMP), her exit follows a standard three-month notice period to facilitate a smooth transition. This administrative change is not expected to have any material impact on the company's financial performance or strategic direction.
- Resignation of Ms. Shalaka Koparkar as CS & Compliance Officer effective December 24, 2025.
- The resignation was submitted on September 22, 2025, providing a 90-day notice period for transition.
- Management has already identified a suitable candidate to fill the KMP vacancy.
- The departure is cited as being for personal reasons with no governance concerns raised.
Sula Vineyards Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the announcement of the company's unaudited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and directors until 48 hours after the results are made public. This is a standard procedural filing and does not indicate any fundamental change in the company's operations.
- Trading window closure begins on Thursday, January 1, 2026.
- Closure is for the purpose of declaring Unaudited Financial Results for the quarter ending December 31, 2025.
- The window will reopen 48 hours after the official declaration of the financial results.
- Applies to all Directors, Designated Persons, and Connected Persons as per SEBI regulations.
Sula Vineyards announced the successful re-appointment of Mr. Rajeev Samant as Managing Director and CEO via postal ballot. The resolution was passed with the requisite majority, as per Regulation 44 of SEBI Listing Regulations. Total votes polled were 43,224,604, with 40,147,054 votes in favor and 3,077,550 against. This indicates strong shareholder confidence in the current leadership.
- 40,147,054 votes were cast in favor of Mr. Rajeev Samant's re-appointment.
- 3,077,550 votes were cast against the resolution.
- Total of 43,224,604 votes polled.
- Promoter and Promoter Group E-Voting: 20,562,731 votes polled, 100% in favor.
Financial Performance
Revenue Growth by Segment
In H1 FY26, Own Brands revenue was INR 226.4 Cr (down 6.4% YoY), Wine Tourism grew to INR 26.9 Cr (up 14.5% YoY), and Other segments including imported brands reached INR 4.6 Cr (up 10.1% YoY). Total revenue from operations for H1 FY26 was INR 258.0 Cr, a decline of 4.3% YoY from INR 269.7 Cr.
Geographic Revenue Split
Maharashtra, Karnataka, Telangana, New Delhi, and Goa collectively contribute over 75% of total revenue. Maharashtra is the largest market, while Telangana is the third largest. Sula is expanding in non-core markets like Haryana, Uttar Pradesh, Rajasthan, and West Bengal to reduce concentration risk.
Profitability Margins
Operating margins moderated significantly to 18.2% in H1 FY26 from 26.7% in H1 FY25. Gross margins fell to 66.4% in H1 FY26 from 74.9% YoY, impacted by a 150 bps hit from high-cost liquid inventory carryover and a 400-500 bps increase in COGS due to third-party sourcing for wine tourism.
EBITDA Margin
Operating EBITDA margin was 17.0% in H1 FY26, down 809 bps from 25.1% in H1 FY25. Operating EBITDA absolute value fell 35.2% YoY to INR 43.8 Cr. The decline was driven by higher selling and distribution expenses and a shift in product mix, partially offset by an 8% reduction in operating costs through disciplined management.
Capital Expenditure
Sula incurred INR 78 Cr in capex during FY25 for capacity expansion and renewable energy. Planned annual capex for FY26-FY28 is INR 30-35 Cr, primarily for maintenance, sustainability, and expanding wine tourism facilities like the Haven by Sula resort.
Credit Rating & Borrowing
ICRA and CRISIL maintain ratings with a stable outlook. Interest coverage ratio moderated to 5.1 times in FY25 from 6.7 times in FY24. Total debt/OPBDITA rose to 2.6 times as of March 31, 2025, from 2.1 times the previous year due to margin contraction.
Operational Drivers
Raw Materials
Grapes are the primary raw material, accounting for the bulk of wine production costs. High-cost grape inventory from the 2024 harvest season impacted gross margins by approximately 150 basis points as it was phased out through H1 FY26.
Import Sources
Grapes are sourced domestically from over 2,800 acres of vineyards located in Maharashtra (Nashik) and Karnataka. The company also imports international wine brands for its trading business, which accounts for approximately 2% of revenue.
Key Suppliers
Sula sources grapes through a network of contract farmers across 2,800 acres. It also recently transitioned to third-party sourcing for its wine tourism food and beverage operations to focus on core wine production.
Capacity Expansion
Current production capacity is 18.2 million liters (16.5m in Nashik, 1.7m in Karnataka). Sula is expanding its tank capacity to 19.2 million liters by the end of FY26 to support long-term volume growth.
Raw Material Costs
Cost of Goods Sold (COGS) rose 34.7% YoY in H1 FY26 to INR 69.2 Cr. This increase was driven by the transition to third-party sourcing for hospitality and the utilization of expensive grape stock from the previous harvest.
Manufacturing Efficiency
The company operates six manufacturing units (four in Nashik, two in Karnataka). Efficiency is being targeted through a 15.9 million liter production base that is currently being scaled to 19.2 million liters to improve operating leverage.
Logistics & Distribution
Sula utilizes an extensive network of 50 distributors and has the largest wine distribution network in India. Selling and distribution expenses increased in H1 FY26 as the company invested in expanding its footprint in non-core states like Telangana and Madhya Pradesh.
Strategic Growth
Expected Growth Rate
11%
Growth Strategy
Growth will be driven by premiumization (Elite & Premium brands share at 78%), expanding the CSD segment (sales doubled YoY in Q2 FY26), and increasing wine tourism capacity by adding 20 rooms at Haven by Sula. The company is also re-entering the imported wine distribution business to leverage its existing network.
Products & Services
Sula sells 60+ labels of wine across Elite, Premium, and Economy segments. It also provides hospitality services through wine resorts (The Source, Beyond by Sula, Haven by Sula) and wine tasting sessions.
Brand Portfolio
Sula, The Source, Dindori, Beyond Sula, Haven by Sula, and Rasa.
New Products/Services
Expansion of the CSD (Canteen Stores Department) portfolio from 5 to 9 labels contributed to a 100% YoY growth in that segment during Q2 FY26. New hospitality capacity at Haven by Sula is expected to commence in Q4 FY26.
Market Expansion
Targeting double-digit growth in states like Haryana, Uttar Pradesh, and Rajasthan. Sula is also focusing on increasing its presence in Madhya Pradesh and Telangana to capture emerging wine consumption trends.
Market Share & Ranking
Sula is the market leader in the Indian wine industry with a dominant market share of over 50%.
Strategic Alliances
Sula acquired a 100% shareholding in N D Wines Private Limited in Q1 FY25 to strengthen its manufacturing footprint in the Nashik region.
External Factors
Industry Trends
The industry is shifting toward premiumization and wine tourism. While the overall market faces regulatory hurdles, Sula is positioning itself as a lifestyle brand rather than just a liquor producer to capitalize on evolving societal attitudes.
Competitive Landscape
Sula competes with other domestic wineries and international imports. Despite lower S&D spend than some competitors, Sula continues to gain market share in key corporation markets.
Competitive Moat
Sula's moat is built on its 50%+ market share, a vast distribution network of 50+ distributors, and high entry barriers created by complex state-specific regulations and advertising bans that favor established incumbents.
Macro Economic Sensitivity
Demand is sensitive to urban discretionary spending and inflationary pressures, which caused a moderation in revenue growth to 5% in early FY25.
Consumer Behavior
There is an increasing trend toward wine tourism and premium wine consumption in urban centers, which Sula captures through its resorts and 'The Source' brand line.
Geopolitical Risks
Trade barriers and import duties on international wines favor Sula's domestic production, but changes in state-level policies act as internal 'geopolitical' risks within India.
Regulatory & Governance
Industry Regulations
The industry is highly regulated with extensive government controls on advertising, pricing, and distribution. State-specific retail license auctions (e.g., Telangana) can cause temporary total cessation of sales in those regions.
Environmental Compliance
Sula is investing in sustainability capex and renewable energy, though specific ESG compliance costs in INR are not detailed.
Taxation Policy Impact
Sula is subject to state-specific excise duties and VAT. The Wine Industrial Promotion Scheme (WIPS) provides a VAT refund in Maharashtra, with INR 20 Cr accrued in H1 FY26 and INR 70 Cr currently outstanding.
Legal Contingencies
Sula received a tax assessment order under the Central Sales Tax Act, 1956 for the period 2020-2021 from the Assistant Commissioner of State Tax, Nashik, in April 2025.
Risk Analysis
Key Uncertainties
The primary uncertainty is the continuation of the WIPS subsidy beyond FY28 and the risk of unfavorable excise policy changes in Maharashtra and Karnataka, which could impact margins by over 500 bps.
Geographic Concentration Risk
High concentration risk with over 75% of revenue coming from just five states/regions: Maharashtra, Karnataka, Telangana, New Delhi, and Goa.
Third Party Dependencies
Increased dependency on third-party sourcing for wine tourism operations (COGS impact of 400-500 bps) and reliance on contract farmers for grape supply.
Technology Obsolescence Risk
Low risk of obsolescence in wine production, but the company is digitizing its distribution and direct-to-consumer sales channels to maintain its competitive edge.
Credit & Counterparty Risk
Receivables from the Telangana Government were overdue but partially recovered in October 2025; timely receipt of WIPS accruals from the Maharashtra government remains a key monitorable for cash flow health.