Sula Vineyards Limited (SULA)
₹136.48 -1.29% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Sula Vineyards' revenue was ₹113 Cr (-4.6% year on year, -20.8% on the previous quarter), and net profit ₹1.1 Cr (-45.4% year on year); the operating margin was 14.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹113 | -4.6% | -20.8% |
| Operating profit | ₹16.6 | -9.3% | -40.1% |
| Net profit | ₹1.1 | -45.4% | -87.7% |
| EPS (₹) | 0.13 | -43.5% | -87.3% |
| Operating margin | 14.7% | — | — |
SULA delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 53.28% of the SULA shares traded on NSE were taken to delivery, against the stock's own 20-session average of 46.92%. That is close to its usual level. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 46.8% · 60.3% · 38.9% · 27.8% · 53.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sula Vineyards Limited has announced the results of its postal ballot concluded on October 7, 2026. Shareholders approved the appointment of Mr. Chaitanya Rathi as Non-Executive Non-Independent Director with 99.75% votes in favor. Additionally, a special resolution approving the payment of commission to Mr. Rathi was passed with 99.72% support. A total of 37.57 million votes were cast, representing a turnout of 44.49% of outstanding shares.
- Resolution 1 (Director Appointment) passed with 99.75% votes in favor (37,476,706 votes)
- Resolution 2 (Payment of Commission) passed with 99.72% votes in favor (37,463,016 votes)
- Total voter turnout represented 44.49% of outstanding shares (37,570,778 votes polled)
- 100% of promoter votes (20,791,544 shares) were cast in favor of both resolutions
Sula Vineyards Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The submission is based on confirmation received from its Registrar and Transfer Agent, KFin Technologies Limited, dated October 2, 2026. The document confirms that details of securities dematerialized or rematerialized during the period were duly furnished to the exchanges. This is a standard quarterly administrative filing with no impact on business operations or financials.
- Compliance certificate submitted under Regulation 74(5) for the quarter ended September 30, 2026
- Confirmation issued by Registrar and Transfer Agent KFin Technologies Limited on October 2, 2026
- Filing submitted to NSE and BSE on October 6, 2026
Sula Vineyards Limited has issued a Postal Ballot Notice seeking shareholder approval via remote e-voting for two agenda items. The company proposes appointing Mr. Chaitanya Rathi (former Chief Operating Officer) as a Non-Executive Non-Independent Director liable to retire by rotation. Additionally, it seeks approval to pay him an annual commission of ₹4,00,000 for FY 26-27 (pro-rata), FY 27-28, and FY 28-29. The remote e-voting period runs from September 8, 2026, to October 7, 2026, with the cut-off date set as September 4, 2026.
- Shareholder approval sought to appoint former COO Mr. Chaitanya Rathi as Non-Executive Non-Independent Director
- Proposed remuneration includes an annual commission of ₹4,00,000 for FY 26-27 (pro-rata) through FY 28-29 plus sitting fees
- Appointee holds 50,000 equity shares of face value ₹2 each in the company
- Remote e-voting window open from September 8, 2026 (9:00 AM) to October 7, 2026 (5:00 PM)
Sula Vineyards has scheduled a series of group and one-to-one meetings with over 20 institutional investors and mutual funds on August 20, 2026. The interactions will take place at the DAM Capital Alcoholic Beverages Conference in Mumbai. Participating entities include major names such as ICICI Prudential MF, SBI Pension Funds, and Morgan Stanley PE. This outreach occurs as the company faces a challenging period, with a 12-month price return of -39.8% and a decline in annual PAT from Rs 93.3 Cr in FY24 to Rs 25.65 Cr in FY26.
- Scheduled meetings with 20+ institutional investors and funds on August 20, 2026
- Five distinct interaction slots scheduled between 11:00 and 16:50 IST
- Participation from high-profile firms including Morgan Stanley PE, ICICI Prudential MF, and SBI Pension Funds
- Physical meetings to be held at Trident BKC, Mumbai
- Company maintains a dominant market share of over 50% in the Indian wine industry
Sula Vineyards reported a modest 3% YoY revenue growth to ₹121 crore in Q1 FY27, supported by a 6% growth in its Elite & Premium segment. Wine Tourism revenue grew 12% YoY to ₹15.5 crore, now contributing 13% to total revenue. Gross margins were impacted by 150 bps due to a strategic shift to 100% wine grape procurement to manage inventory. The company completed the ₹20 crore acquisition of the former Chandon estate (Domain RASA), with winery operations expected to start in Q4 FY27.
- Elite & Premium brands reached an all-time high share of 78% of Own Brands sales, up 310 bps YoY.
- Wine Tourism revenue increased 12% YoY to ₹15.5 crore, with resort occupancy at 63%.
- Completed acquisition of the former Chandon estate for ₹20 crore, representing ~3.6% of net worth.
- Gross margin faced a 150 bps headwind due to 100% wine grape procurement in the 2026 harvest.
- Telangana market showed a strong recovery with over 50% YoY growth following regulatory resolutions.
Sula Vineyards has made the audio recording of its Q1 FY27 earnings call (held on August 7, 2026) available to the public. This follows a period where the company reported a TTM revenue of ₹596 crore and a significant drop in annual PAT from ₹93.3 crore in FY24 to ₹25.65 crore in FY26. Investors should focus on management's commentary regarding the 11% expected growth rate and the impact of the Maharashtra excise duty hike. The company maintains a dominant market share of over 50% in the Indian wine industry.
- Earnings call held on August 7, 2026, covering the quarter ended June 30, 2026
- Company maintains a dominant market share of over 50% in the Indian wine industry
- Elite and Premium brands now represent 78% of the total portfolio
- Targeting tank capacity expansion to 19.2 million liters by the end of FY26
- TTM Operating Profit Margin (OPM) stands at 17.4%, down from 28.89% in FY24
Sula Vineyards has scheduled a physical meeting with institutional investors and analysts at the Emkay Confluence 2026 in Mumbai on August 13, 2026. The session is scheduled from 2:00 p.m. to 5:00 p.m. IST and will include both group and one-on-one interactions. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared. This interaction follows a period where TTM PAT has declined to Rs 26 Cr compared to Rs 70.2 Cr in FY25.
- Scheduled meeting date is August 13, 2026, in Mumbai.
- Interaction window is set for 3 hours between 2:00 p.m. and 5:00 p.m. IST.
- Participation includes both group and one-on-one meeting formats.
- Company maintains a dominant market share of over 50% in the Indian wine industry.
Sula Vineyards has submitted board comments regarding fines levied by both the NSE and BSE. The penalties were imposed due to non-compliance with specific provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While the exact quantum of the fine was not disclosed in the filing, such penalties are typically administrative. The company's TTM PAT stands at Rs 26 Cr, making small regulatory fines financially immaterial, though they warrant monitoring for governance standards.
- Fines levied by both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
- Non-compliance relates to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Board of Directors has formally reviewed and commented on the matter as of August 6, 2026.
- Company maintains a dominant market share of over 50% in the Indian wine industry despite regulatory hurdles.
Sula Vineyards has received penalties from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for non-compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors met on August 6, 2026, to review and comment on these fines. While the specific fine amount was not disclosed in this brief, such penalties typically arise from administrative or governance-related delays. This comes at a time when the company's TTM PAT has declined significantly to Rs 26 Cr from Rs 93.3 Cr in FY24.
- Fines imposed by both major exchanges (NSE and BSE) for regulatory non-compliance.
- Board of Directors formally reviewed the exchange actions on August 6, 2026.
- Company TTM PAT of Rs 26 Cr provides a thin cushion for unexpected regulatory costs.
- TTM Revenue stands at Rs 596 Cr, with the company facing a 39.8% share price decline over the last 12 months.
Sula Vineyards reported a modest 3% YoY growth in net revenue to ₹112.9 Cr for Q1 FY27, supported by a 12.3% rise in wine tourism revenue. However, PAT fell sharply by 46% to ₹1.0 Cr as gross margins contracted by 550 bps to 68.5%, primarily due to a higher mix of expensive wine grapes used to conserve working capital. The company completed the ₹20 Cr acquisition of the Chandon Estate (renamed Domaine Rāsā) and continues its premiumization strategy, with Elite & Premium brands now contributing 78% of own-brand revenue.
- Net Revenue from operations grew 3% YoY to ₹112.9 Cr, while PAT declined 46% to ₹1.0 Cr.
- Elite & Premium portfolio salience improved by 310 bps YoY to 78% of own-brand revenue.
- Wine Tourism revenue increased 12.3% YoY to ₹15.4 Cr, now contributing 13% of total revenue.
- Acquired Chandon Estate for ₹20 Cr, adding a 19-acre estate and winery renamed 'Domaine Rāsā'.
- Gross Margin dropped 550 bps to 68.5% due to a ~150 bps impact from higher blended grape costs.
Sula Vineyards reported a modest 3% YoY growth in net revenue to ₹112.9 cr for Q1 FY27, driven by a 12% rise in Wine Tourism (₹15.5 cr). While the Elite & Premium portfolio grew 6% and now constitutes 78% of sales, overall EBITDA fell 9% to ₹16.6 cr. This margin contraction, down 197 bps to 14.7%, was primarily due to a 150 bps impact from higher blended grape costs. Management expects these cost pressures to subside starting Q4 FY27 and normalize by Q1 FY28.
- Net Revenue from operations grew 3% YoY to ₹112.9 cr in Q1 FY27.
- Wine Tourism revenue increased 12% YoY to ₹15.5 cr, supported by the launch of 'The Haven' resort.
- Elite & Premium segment share increased by 310 bps YoY to reach 78% of the total portfolio.
- EBITDA declined 9% YoY to ₹16.6 cr due to higher wine grape vs. table grape mix costs.
- Operating expenses were reduced by 3% YoY to help limit the impact on profitability.
Sula Vineyards has approved the grant of 42,000 stock options to eligible employees under its ESOP 2021 scheme. The exercise price is set at Rs 170 per share, representing a slight premium to the current market price of Rs 167.5. The options will vest in three equal annual tranches starting one year from the grant date. The potential dilution from this specific grant is negligible, representing approximately 0.05% of the total share capital.
- Grant of 42,000 stock options to eligible employees under the ESOP 2021 scheme
- Exercise price fixed at Rs 170 per share, slightly above the current market price of Rs 167.5
- Vesting occurs in three equal annual tranches starting one year from the grant date
- Exercise period is limited to 6 months from the date of each vesting
- Total shares arising from exercise will be 42,000 equity shares of face value Rs 2 each
Sula Vineyards has formalized the appointment of Ms. Rinku More as Chief Financial Officer (CFO) effective August 6, 2026, following her tenure as CFO Designate since July 15, 2026. Ms. More, a Chartered Accountant with 8 years of experience within Sula, succeeds Abhishek Kapoor. Additionally, the board appointed former COO Chaitanya Rathi as an Additional Non-Executive Non-Independent Director. These leadership changes occur as the company manages a TTM revenue of ₹596 Cr and a debt-to-equity ratio of 0.48.
- Ms. Rinku More appointed as CFO and Key Managerial Personnel effective August 6, 2026
- Ms. More has 8 years of internal experience at Sula and 11 years total in finance and audit
- Mr. Chaitanya Rathi, former COO (2019-2023), joins the board as a Non-Executive Director
- Shareholder approval for Mr. Rathi's appointment and commission to be sought via postal ballot within 3 months
- Company maintains a production capacity of 18.2 million liters with plans to reach 19.2 million by end of FY26
Sula Vineyards reported a weak start to FY27, with consolidated net profit declining 45.4% YoY to ₹1.06 Cr. While revenue from operations saw a marginal increase of 2.1% to ₹120.79 Cr, the bottom line was pressured by higher material costs and inventory adjustments. A notable non-operational highlight was the sale of a Mumbai office property for ₹27.00 Cr, contributing a ₹1.79 Cr gain to other income. The company continues to face margin pressure, with quarterly EPS dropping to ₹0.13 from ₹0.23 YoY.
- Consolidated Net Profit fell 45.4% YoY to ₹1.06 Cr in Q1 FY27 from ₹1.94 Cr in Q1 FY26.
- Revenue from operations grew marginally by 2.1% YoY to ₹120.79 Cr.
- Sold Mumbai office property for ₹27.00 Cr, resulting in a profit of ₹1.79 Cr recognized in other income.
- Consolidated EPS declined to ₹0.13 for the quarter, down from ₹0.23 in the previous year's corresponding quarter.
- Standalone profit stood at ₹4.06 Cr, significantly aided by the property sale gain, compared to a loss of ₹0.91 Cr YoY.
Sula Vineyards has scheduled its Q1 FY27 earnings conference call for August 7, 2026, at 3:00 PM IST. The management team, including MD & CEO Rajeev Samant and CFO Designate Rinku More, will discuss the financial performance for the quarter ended June 30, 2026. This call follows a fiscal year (FY26) where the company saw a significant decline in PAT to Rs 25.65 Cr from Rs 70.2 Cr in FY25. Investors will be looking for updates on the 11% expected growth rate and the impact of recent excise duty changes in Maharashtra.
- Earnings conference call scheduled for August 7, 2026, at 3:00 PM IST
- Management representation includes MD & CEO Rajeev Samant and CFO Designate Rinku More
- Discussion will focus on financial results for the quarter ended June 30, 2026
- Company maintains a dominant market share of over 50% in the Indian wine industry
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.
