Sula Vineyards Promoter Raises Stake to 24.5% in First Buy Since IPO

Sula Vineyards’ promoter and Managing Director Rajeev Samant has increased his shareholding in the company through open-market purchases, marking the first promoter stake increase since the winemaker’s public listing in December 2022.

The move comes at a time when the stock has come under pressure and the company has reported its fifth consecutive quarterly decline in profit, driven largely by a one-time tactical destocking exercise in Karnataka.

Against a backdrop of near-term earnings pressure and weak demand in parts of its key markets, the promoter’s purchase has drawn investor attention as a signal of long-term confidence in the business.

What Did the Promoter Buy?

• Rajeev Samant acquired 1.15 lakh shares through open-market transactions on 12th and 13th February 2026.

• Promoter holding rose to 24.5%, from 24.3% at the end of December 2025.

Why Is the Timing Significant?

Promoter buying is often viewed with suspicion during periods of earnings or stock price declines. The stock of Sula Vineyards has fallen by nearly 20% within just under two months in early 2026 as investors become cautious with the deceleration in growth and in the demand environment in certain markets.

The time when the purchase has been made indicates that the promoter might have considered the recent correction as an opportunity to have a greater degree of exposure at reduced valuations. Moreover, management describes the recent weaknesses in earnings as being in part due to temporary operating factors and not due to structural demand erosion.

What Drove the Weak Q3 Performance?

Sula Vineyards said that its profits fell sharply for the fifth consecutive quarter in a row, ending on 31st December 2025.

• Net profit fell 67.6% year on year (YoY) to ₹9.1 crore, while revenue declined 9.7% YoY to ₹195.7 crore.

• Operating performance weakened materially, with earnings before interest taxes, depreciation and amortisation (EBITDA) dropping 40.2% YoY to ₹31.8 crore, leading to a contraction in EBITDA margin to 16.3% from 24.6% a year earlier.

Management said revenue was broadly in line with last year if the impact of destocking is excluded.

Is There Any Business Momentum?

Although the core operating metrics were not strong, the wine tourism business was a relatively bright spot in the quarter. The segment has registered a 34% increase over the past year, after at least five quarters of subdued competencies, a sign that experiential demand may recover through winery visits and consumption driven by tourism.

This trend indicates that, although immediate retail demand in certain markets has become softer, ancillary revenue initiatives connected to the tourism sector and experiences could provide a buffer to topline growth.

Also Read - SEBI-Approved 5 IPOs From Diverse Segments

Key Investor Takeaway

For investors, the promoter’s first stake increase since the initial public offering (IPO) could signal confidence at a time when earnings and the share price are under pressure. Sula Vineyards stock is currently trading at ₹179.75 as of the morning of 19th February 2026.

But destocking, margin pressure, and a poor demand environment in key regions have hurt core profitability. The main concern is whether a return to regular operations and an increase in wine tourism in the near future can lead to a long-term rebound in profitability for the company.

Sources:

EconomicTimes

Chittorgarh