Latest news with #RajeevSamant
Time of India
07-08-2025
- Business
- Time of India
Indian winemaker Sula's profit slumps as urban consumers cut back
Indian winemaker Sula Vineyards reported a nearly 87% tumble in its quarterly profit on Wednesday due to softening demand from budget-conscious urban consumers for its more affordable wines . City dwellers, stretched thin by slow wage growth, have been tightening their belts for several quarters, pressuring sales at consumer-facing corporations, from Dove soapmaker Hindustan Unilever to Yippee noodles manufacturer ITC . Consolidated net profit at Sula, which draws the bulk of its revenue from urban areas, sank to 19.4 million rupees ($221,272) in the first quarter ended June 30, from 146.3 million rupees a year earlier. Sula's own brands business -- including Dindori, The Source and eponymous wines and makes up nearly 90% of revenue -- clocked an 11% decline in revenue in the quarter. "Own brands growth was muted due to continued urban demand softness," CEO Rajeev Samant said in a statement. Sula's wine tourism division posted a 22% growth and record occupancy, benefiting from affluent consumers splurging at its resorts and tasting rooms as they seek new experiences. Still, that was not enough to cancel out the decline in the company's mainstay wine business. Total revenue fell 8% to 1.18 billion rupees. Expenses, on the other hand, increased 6%. But Sula may be looking at better quarters ahead as consumer goods makers, including ITC and Hindustan Unilever, say they expect easing inflation, lower interest rates, and income tax cuts to reverse a monthslong slowdown.
&w=3840&q=100)
Business Standard
07-08-2025
- Business
- Business Standard
This wine maker's share price dips 6% as Q1 profit nosedives 87% YoY
Sula Vineyards share price: Wine maker Sula Vineyards share price was under pressure on Thursday, August 7, 2025, with the scrip plunging up to 5.90 per cent to an intraday low of ₹262.25 per share. 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.
Reuters
06-08-2025
- Business
- Reuters
Indian winemaker Sula's profit slumps as urban consumers cut back
Aug 6 (Reuters) - Indian winemaker Sula Vineyards ( opens new tab reported a nearly 87% tumble in its quarterly profit on Wednesday due to softening demand from budget-conscious urban consumers for its more affordable wines. City dwellers, stretched thin by slow wage growth, have been tightening their belts for several quarters, pressuring sales at consumer-facing corporations, from Dove soapmaker Hindustan Unilever ( opens new tab to Yippee noodles manufacturer ITC ( opens new tab. Consolidated net profit at Sula, which draws the bulk of its revenue from urban areas, sank to 19.4 million rupees ($221,272) in the first quarter ended June 30, from 146.3 million rupees a year earlier. Sula's own brands business -- including Dindori, The Source and eponymous wines and makes up nearly 90% of revenue -- clocked an 11% decline in revenue in the quarter. "Own brands growth was muted due to continued urban demand softness," CEO Rajeev Samant said in a statement. Sula's wine tourism division posted a 22% growth and record occupancy, benefiting from affluent consumers splurging at its resorts and tasting rooms as they seek new experiences. Still, that was not enough to cancel out the decline in the company's mainstay wine business. Total revenue fell 8% to 1.18 billion rupees. Expenses, on the other hand, increased 6%. But Sula may be looking at better quarters ahead as consumer goods makers, including ITC and Hindustan Unilever, say they expect easing inflation, lower interest rates, and income tax cuts to reverse a monthslong slowdown. ($1 = 87.6750 Indian rupees)
Time of India
22-06-2025
- Business
- Time of India
Wine industry expects a boost in FY26 after last year's consumption slowdown
The wine industry projects a normalised domestic macro environment to boost growth in FY26 after having suffered a setback in 2024-25. The previous financial year saw slowdown in urban consumption growth taking a "temporary pause", according to the annual report of Sula Vineyards Ltd. The impact on urban consumption slowdown was more evident on the wine segment when compared with other AlcoBev categories, as it is a predominantly urban drink, according to the report. Demand for wine was also impacted because of multiple temporary regulatory and other market disruptions, including general elections and state elections in key markets such as Maharashtra, Sula Vineyards Founder and CEO Rajeev Samant said in the report. "After 3 years of strong growth, FY25 was more a year of demand reset for the Indian wine industry," he said, adding, "But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26." Despite the challenges, Sula reported its highest ever revenue from operations at Rs 619.4 crore in FY25. "We continued to consolidate our leadership position, being by far and ahead the largest wine brand in the country," said Samant while addressing his shareholders. According to Samant, the worst has passed and there is "optimism of seeing better traction and growth in FY26 with positive triggers and expansion plans in our Own Brands and Wine Tourism businesses further supported by the normalisation of the macro environment expected soon." The company aims for accelerating earnings Growth over the next 3 years (FY25-FY28) with improved EBITDA margins and capital efficiency. This will be achieved through initiatives such as product development, expansion of its capacity, market Penetration, Wine Tourism and D2C Business. Sula is on track to expand Cellar capacity by 1 million litres to total capacity of 19.2 million litres per annum by the end of FY26. Samant also pointed out that the wine culture is evolving and spreading across the nation, outside its top two markets, which is encouraging. "Our domestic Own Brand sales, excluding Maharashtra and Karnataka, grew by 8 per cent YoY, powered by a total of 11 states registering healthy double-digit growth. This fits in well with our endeavour of creating a truly pan-India penetration," said Samant. India's wine market is valued at approximately $150-200 million (including both domestic and imported wines), with more than 3 million cases being sold annually. "Wine is still in a nascent stage in India, accounting for "Going forward, the Indian wine market is expected to grow at 15 per cent CAGR over CY 2023-2028 led by the increasing prosperity and disposable income, rapid urbanisation, evolving consumer preferences and increase in the number of working women and women drinkers," the company said. Moreover, Sula is also witnessing double-digit growth from its wine tourism business. It has two luxury resorts in Nashik - 'The Source at Sula' and 'Beyond by Sula', with a total of 104 keys. It has a new 30-key resort coming up near its York Winery, near Nashik and is expanding Wine Tourism Facility at Domaine Sula, Karnataka. "In FY25, our wine tourism revenue grew by 10.2 per cent YoY to Rs 60.3 crore, driven by a very successful SulaFest'25, coupled with the strong performance of our resorts. Our resort occupancy improved by 400 bps from 74 per cent in FY24 to 78 per cent in FY25 on the back of a strong festive and wedding season," he said.
&w=3840&q=100)
Business Standard
22-06-2025
- Business
- Business Standard
Wine industry expects rebound in FY26 after consumption slowdown last year
The impact of urban consumption slowdown was more 'stark' on the wine segment versus other AlcoBev categories, as it is a predominantly urban drink, according to the report Press Trust of India New Delhi The wine industry expects a normalised domestic macro environment to come as a boost in the current fiscal after suffering setbacks in 2024-25, which saw urban consumption slowdown and growth taking a "temporary pause", according to the annual report of Sula Vineyards Ltd. The impact of urban consumption slowdown was more 'stark' on the wine segment versus other AlcoBev categories, as it is a predominantly urban drink, according to the report. The wine demand was also impacted by multiple temporary regulatory and other market disruptions, including general elections and state elections in key markets such as Maharashtra, Sula Vineyards Founder and CEO Rajeev Samant said in the report. "After 3 years of strong growth, FY25 was more a year of demand reset for the Indian wine industry," he said, adding, "But the good news is that these setbacks are now behind us as we look forward to a more normalised domestic macro environment going into FY26." However, despite challenging market conditions for the wine industry, Sula reported its highest ever revenue from operations at Rs 619.4 crore in FY25. "We continued to consolidate our leadership position, being by far and ahead the largest wine brand in the country," said Samant while addressing his shareholders. According to Samant, "now the worst is behind us" and "optimistic of seeing better traction and growth in FY26 with positive triggers and expansion plans in our Own Brands and Wine Tourism businesses further supported by the normalisation of the macro environment expected soon." The company aims for "accelerating earnings Growth over the next 3 years (FY25-FY28) with improved Ebitda margins and capital efficiency". This will be helped through initiatives such as product development, expansion of its capacity, market Penetration, Wine Tourism and D2C Business. It is "on-track to expand Cellar capacity by 1 Mn Litres to total capacity of 19.2 Mn Litres per annum by the end of FY26". Samant also pointed out that the wine culture is evolving and spreading across India outside its top two markets, which is encouraging. "Our domestic Own Brand sales, excluding Maharashtra and Karnataka, grew by 8 per cent YoY, powered by a total of 11 states registering healthy double-digit growth. This fits in well with our endeavour of creating a truly pan-India penetration," said Samant. India's wine market is valued at approximately $150-200 million (including both domestic and imported wines), with more than 3 million cases being sold annually. "Wine is still in a nascent stage in India, accounting for <1% of the Indian AlcoBev market and the per capita consumption of wine in India too is less than 50 ml as compared to the world average of 5.5 litres," the report said. Therefore, there is a vast scope for the wine sector to grow and expand in India. "Going forward, the Indian wine market is expected to grow at 15 per cent CAGR over CY 2023-2028 led by the increasing prosperity and disposable income, rapid urbanisation, evolving consumer preferences and increase in the number of working women and women drinkers," the company said. Besides the wine business, Sula is also witnessing double-digit growth from its wine tourism business. It has two luxury resorts in Nashik - The Source at Sula' and Beyond by Sula', with a total of 104 keys. It has a new 30-key resort coming up near its York Winery, near Nashik and is expanding Wine Tourism Facility at Domaine Sula, Karnataka. "In FY25, our wine tourism revenue grew by 10.2 per cent YoY to Rs 60.3 crore, driven by a very successful SulaFest'25, coupled with the strong performance of our resorts. Our resort occupancy improved by 400 bps from 74 per cent in FY24 to 78 per cent in FY25 on the back of a strong festive and wedding season," he said.
