Sula Vineyards Q4FY25: A Toast with a Twist
- 3 min read
- 1,086
- Published 18 Dec 2025
It’s that time again—earnings season—and all eyes were on Sula Vineyards. India’s beloved winemaker popped open its numbers for Q4FY25, and let’s just say, the vintage this quarter was a bit mixed.
Let’s uncork the details
The Grape Reality: Mixed Signals This Quarter
Sula’s Q4FY25 came with a few cheers and some cautious sips.
Here’s the gist:
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Revenue growth was weak, but cost control helped cushion profits.
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Margins took a hit, but not unexpectedly.
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Urban demand was soft, and some markets were clearing excess inventory.
“We cut FY26-27E EPS by 11-13%, roll over and revise FV to ₹325 (from ₹400). We are valuing Sula at 32x June 2027E PE (35x earlier). Retain ADD.” — Kotak Research Team
What Went Well: Hospitality is Pouring Strong
If there’s a reason to raise a glass, it’s Sula’s hospitality segment.
Hospitality Revenue | 24.4% ↑ |
Occupancy Trends | Recovering |
The good vibes were backed by better occupancy across their properties—a refreshing comeback for the segment.
The Sour Notes: Revenue Misses the Mark
Despite the warm buzz around hospitality, Sula’s core wine business had a slightly flat finish.
Gross Revenue | 1% ↑ |
Own Brands | 3% ↓ |
Elite & Premium Segments | 2.5% ↓ |
What went wrong?
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Urban slowdown — Demand just didn’t pick up as expected.
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Channel destocking — Distributors in some markets were reducing their inventory.
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Core market softness — Sula’s bread-and-butter markets weren’t as bubbly.
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Lower WIPS credits — Less support from the Wine Industrial Promotion Scheme.
Margins: A Little Give, A Little Take
Even though topline growth was muted, margin management offered a silver lining.
EBITDA Margin | 22.6% | -140 bps |
Gross Margin | 82.8% | +275 bps |
So while profits felt a squeeze, gross margins showed Sula still knows how to keep the operation lean and luxe.
Valuation Talk: Sip or Skip?
Here’s where things stand on the stock front:
Current Price | ₹285 |
Target Price | ₹325 |
Valuation Basis | 32x FY27E PE |
Rating | ADD |
Final Sip: What Does This Mean for Investors?
Q4 wasn’t a blockbuster, but it wasn’t a washout either. Hospitality is bubbling nicely, and while own-brand sales took a dip, some of that may be temporary noise due to destocking and short-term slowdowns.
Bottom line? If you believe in India’s growing wine culture and Sula’s long-term story, the "ADD" rating suggests now might be a good time to pour it into your portfolio—just don’t expect fireworks right away.
But First, a Note of Caution
Before you go all-in on that stock order...
“This is a synopsis of the Research report issued by Kotak Neo. This is not a comprehensive report. Before making investment decisions, please read the full version including disclaimers.”
Access the detailed report: Click here to view full PDF
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