Sula Vineyards Q1 FY 2026-27 Results: Net Revenue Rises 3% To ₹112.9 Crore

Sula Vineyards Q1 FY 2026-27 results were supported by steady demand for premium wines and growth in its tourism business. Net revenue from operations increased by 3% year-on-year (YoY) to ₹112.9 crore, while total revenue from operations stood at ₹120.8 crore, up 2.1% from the year-ago quarter.

Profitability, however, came under pressure as higher grape costs weighed on margins. Net profit fell by 45% YoY to ₹1.06 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 9.4% to ₹16.6 crore, while the EBITDA margin narrowed to 14.7% from 16.7% a year earlier.

The company said higher blended grape costs had an impact of around 150 basis points, although lower operating expenses helped reduce the pressure on earnings.

Sula Q1 FY 2026-27 Results Summary

Growth during the quarter was led by the company's premium portfolio. Elite and Premium wine sales increased by 6% YoY, with brands such as The Source, Rāsā and Sula Merlot recording strong double-digit growth. As a result, the Elite and Premium portfolio’s share of sales increased by 310 basis points to 78%, highlighting continued consumer preference for higher-value products.

The Wine Tourism business also maintained its growth momentum, with revenue rising 12% to ₹15.5 crore. Higher room revenue following the launch of The Haven and increased spending per guest supported the improvement. Meanwhile, Own Brands revenue rose 2% to ₹104.3 crore, while revenue from other businesses declined during the quarter.

Sula also expanded its wine tourism footprint during the quarter. It completed the acquisition of the Chandon estate, now renamed Domaine Rāsā, where the tasting room, bottle shop and banquet facilities have started operations. The amphitheatre expansion at its Nashik campus has been completed, while a new wine shop at Domaine Dindori and an events pavilion are expected to open later this year.

Management Commentary And Stock Price

Managing Director and Chief Executive Officer Rajeev Samant said the positive sales momentum seen in the previous quarter continued into Q1 FY27, supported by premium products and wine tourism.

Telangana reported more than 50% year-on-year growth, while Haryana, Chandigarh, defence canteen stores (CSD) and exports also posted strong double-digit growth. Karnataka remained weak, although the company expects performance there to improve in the second half of FY27.

He also said the higher blended grape cost is expected to be temporary and should begin easing from Q4 FY27, before normalising fully from Q1 FY28 as the mix between wine and table grapes rebalances. He added that this is expected to support better profitability in the second half of the financial year.

After the announcement on 6 August 2026, Sula Vineyards’ share price ended the day almost 2% down at ₹167.54 on the National Stock Exchange.

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