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This wine maker's share price dips 6% as Q1 profit nosedives 87% YoY
At 1:05 PM, Sula Vineyards share price was trading near day's low level, down 5.3 per cent at ₹263.9 per share. In comparison, BSE Sensex was trading 0.52 per cent lower at 80,127.87 levels.
What led to the fall in Sula Vineyard's share price today?
Sula Vineyards shares fell after the company posted a weak set of results in the June quarter of financial year 2026 (Q1FY26).
The company's profit tanked 86.7 per cent year-on-year (Y-o-Y) to ₹1.9 crore in Q1FY26, from ₹14.6 crore in Q1FY25.
Sula Vineyards' revenue from operations dropped 7.9 per cent Y-o-Y to ₹118.3 crore in the June quarter of FY26, from ₹128.4 crore in the June quarter of FY25.
At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) slipped 46.1 per cent Y-o-Y to ₹18.3 crore, from ₹33.9 crore in the same quarter last year.
Ebitda margin squeezed 1096 basis points (bps) to 15.5 per cent in Q1FY26, from 26.4 per cent in Q1FY25.
On the bright side, wine tourism revenue grew 22 per cent Y-o-Y to ₹13.7 crore
in Q1FY26. The growth in wine tourism was driven by increased footfalls, highest-ever resort occupancy (82 per cent in Q1FY26 versus 70 per cent in Q1FY25) and spends per guest (up 6 per cent Y-o-Y).
Rajeev Samant, CEO of Sula Vineyards said, 'We reported steady revenue from operations in Q1 FY26, excluding the one-time WIPS gain recorded in Q1FY25. Own Brands growth was muted due to continued urban demand softness, and a lower trade placement of wine in June'25 in Maharashtra - our #1 market, as announcement of excise duty hike on spirits prompted heavy pre-loading of spirits by distribution at pre-revision prices. However, that said, this is a positive development going forward for the company and wine industry in Maharashtra. Encouragingly, despite these headwinds, states such as West Bengal, Goa, UP, Rajasthan, among others recording healthy double-digit growth. In terms of portfolio mix, share of Elite & Premium increased 300+ bps Y-o-Y to 74.7 per cent with The Source and RASA continuing to see strong traction.'
'Wine Tourism remains a bright spot, growing 22 per cent Y-o-Y led by higher footfalls, record Q1 occupancy and spend per guest. Our new wine tourism offering – Dindori Tasting Room & Bottle Shop at ND wines, near the Gujarat border is now open and welcoming visitors. Upcoming projects – 'The Haven by Sula' our 30-key resort near York and the new tasting room at Domaine Sula are on-track to open in time for this festive season,' Samant added.
He further said that with ongoing expansions and the recent opening of the Samruddhi Highway – cutting Mumbai-Nashik travel time by 45 minutes – the outlook for wine tourism remains robust. In other developments, continuing our legacy as India's wine pioneers, we are proud to launch the country's first aromatic, low-alcohol still Muscat wine: Sula Muscat Blanc. Our sparkling Muscat, The Source Moscato, became the fastest Sula wine to reach 10,000 cases, and we expect Muscat Blanc to become a consumer favorite as well. While the year began on a challenging note, we remain focused on delivering strong operating profit growth through the rest of FY26.
About Sula Vineyards
Sula Vineyards Limited is India's leading wine company, commanding over 50 per cent of the domestic market. With a diverse portfolio of nearly 70 labels across multiple price points, Sula has become the go-to brand for wine lovers across the country.
Beyond winemaking, Sula has built a thriving wine tourism business, featuring a luxury vineyard resort and wine-themed restaurants in Nashik and near Bangalore – establishing itself as the preferred wine destination for discerning Indian consumers.
Operating five state-of-the-art wineries in Maharashtra and Karnataka, Sula produces and distributes over 1 million cases annually. The company has pioneered several industry firsts, including India's first Winery Tasting Room (2005) and the country's first vineyard resort (2010), which now attracts more than 330,000 visitors each year.
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