Sula Vineyards hits record low after Q2 PAT slumps 58% YoY to Rs 6 cr

Sula Vineyards declined 1.81% to Rs 247.25 after the company's consolidated net profit tumbled 58.43% to Rs 6.02 crore on 1.1% fall in revenue from operations to Rs 139.66 crore in Q2 FY26 over Q2 FY25.

The drop in revenue was primarily due to short-term route-to-market disruption in Telangana. Excluding Telangana, revenue grew mid-single digit YoY.

Profit before tax (PBT) declined 54.3% YoY to Rs 8.27 crore in Q2 Sept 2025.

EBITDA dropped 24.3% to Rs 25.5 crore in Q2 Sept 2025 compared with Rs 33.6 crore in Q2 Sept 2024. EBITDA margin contracted to 18.2% in Q2 FY26 from 23.8% in Q2 FY25.

Revenue from wine tourism increased 7.7% YoY to Rs 13.2 crore, driven by increased footfalls, higher resort occupancy (77% in Q2 FY26 from 74% in Q2 FY25) and spend per guest. Meanwhile, revenue from own brands fell 2.5% YoY to Rs 124.1 crore in Q2 Sept 2025.

Rajeev Samant, CEO,Sula Vineyars, said, We reported steady revenue from operations in Q2 FY26. Our wine tourism business continued its strong growth momentum to deliver a record Q2. Own Brands performance was subdued, primarily due to a short-term route-to-market disruption in Telangana, our third-largest market. The expiry of retail licenses in Nov25 led to destocking ahead of new issuances. That said, with the license auction process expected to conclude soon and the supply transition to new holders commencing in Dec25, we anticipate a good recovery towards latter half of H2.

Importantly, excluding the Telangana impact, revenue grew in mid-single digits year-on-year in Q2, supported by healthy double-digit growth in 8 states - Haryana, Uttar Pradesh, Rajasthan, among others. Additionally, the CSD segment too delivered a robust performance, with sales nearly doubling YoY, reflecting the benefits of expanded label listings. The share of Elite & Premium stood stable at 78% in Q2 FY26. The Source range continued to post strong double-digit growth, even amid a subdued urban demand environment.

Wine Tourism continues to be a stand-out, growing 8% YoY in Q2 led by increased footfalls, record Q2 resort occupancy and higher spend per guest. In an exciting development, Sula launched its third resort - The Haven by Sula - in Oct25 featuring 30 keys and a state-of-the-art convention centre. We have had a good start to H2 with strong bookings & footfalls in Oct25, and the new resort will further add significant impetus to wine tourism performance in H2.

Meanwhile, the companys board has approved the re-appointment of Rajeev Samant as the managing director & CEO for three-year term, effective from 1st April 2026 to 31st March 2029.

Sula Vineyards is principally engaged in the business of the manufacture, purchase, and sale of premium wine and other alcoholic beverages.

Shares of Sula Vineyards touched a record low of Rs 242 in intraday today.

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