Key Financial Figures & Performance

Q4 FY26 Performance:

  • Net revenue from operations increased to INR36 crore in Q4 FY26 from INR32 crore in Q4 FY25, representing 13% year-on-year growth.
  • Gross profit stood at INR29 crore compared to INR23 crore in Q4 FY25.
  • Gross margins improved to 79% versus 73% in the same period last year.
  • EBITDA loss reduced significantly to INR3.7 crore, compared to a loss of INR7 crore in Q4 FY25.
  • The company achieved breakeven at the operating profit level for the quarter, reporting a positive EBITDA of INR1.06 crore.

Full Year FY26 Performance:

  • Net revenue from operations stood at INR184 crore in FY26 compared to INR181 crore in FY25, representing growth of approximately 1% year-on-year.
  • Gross margins remained healthy at 79% despite changes in product mix.
  • EBITDA improved marginally to INR1 crore in FY26.
  • Depreciation and finance costs were higher during FY26 due to the commissioning of new assets and borrowings undertaken for capacity expansion and working capital requirements.

Operational Highlights and Business Updates

Portfolio Performance:

  • Premium & Above portfolio continued to contribute more than 70% of overall revenue during FY26.
  • Luxury portfolio (wines greater than INR2,000 MRP) grew 15% year-on-year in FY26.
  • Flagship brand J'NOON grew at 44% during the year.
  • Sette strengthened its position as a luxury wine brand with a 15th anniversary limited edition bottle collaboration with fashion designer Manish Malhotra.
  • Premium portfolio revenue declined 16% year-on-year primarily due to regulatory disruptions across Maharashtra, Telangana, Uttarakhand and Delhi.

New Product Launches:

  • Launched Fratelli Brut during FY26, strengthening position in the super premium sparkling wine category. Available across 4 states since November 2025, with plans to expand to 14 more states in FY27.
  • Launched RTD brand Shotgun in H1 FY26, selling approximately 100,000 cases in its first year across 18 states.
  • Planning to launch 3 new RTD variants in Q1 FY27.

Distribution and Market Expansion:

  • Distribution footprint for RTD category expanded to approximately 9,000 outlets across the country, including 2,000 new outlets added during the year.
  • Continued strengthening presence across Tier 2 and Tier 3 cities.
  • Targeting to launch Shotgun in Chhattisgarh, Karnataka, Telangana during H1 FY27.
  • International footprint expanded to 15 countries across bottled wine, canned wine and RTD portfolios.
  • Export revenue doubled during FY26, with expectation of 5% of total revenue coming from exports from FY27 onwards.

CSD Channel Development:

  • Merlot Wine and Noi Sparkling received CSD approvals with sales expected to commence from H1 FY27.
  • Shotgun expected to commence sales through CSD from H2 FY27 onwards.
  • TiLT Red, TiLT Bubbly Rose, and Shiraz Rose already commenced sales through CSD channel in Q4 FY26.
  • Current CSD contribution is 8% of overall revenues.

Capital Expenditure and Investments

  • Completed approximately INR10 crore of capex across Vineyard infrastructure, plant and machinery and other operational infrastructure during FY26.
  • Major capex cycle is largely behind us, with no significant capex commitments anticipated in the near-term.
  • For FY27, earmarked approximately INR9 crore towards routine and strategic capex requirements.
  • Hospitality project remains in planning stage with estimated investment of INR70-80 crore, deferred for review in H2 FY27.

Guidance and Outlook

FY27 Targets:

  • Targeting 30% revenue growth over FY26.
  • Expect to achieve PAT breakeven at approximately INR240 crore revenue.
  • Plan to double RTD business sales.
  • Expand Sette 15th anniversary edition to 7 more states including Delhi, Haryana, Uttar Pradesh, West Bengal, Tamil Nadu, Karnataka and Maharashtra.
  • Expand Fratelli Brut to 14 more states.

Market Position:

  • 30% market share in premium wine segment.
  • More than 50% market share in domestic luxury wine market.
  • More than 90% market share in Wine-in-a-Can segment in India.
  • 40% market share in HoReCa business.

Management Commentary

Management emphasized that Fratelli is transitioning from being a single-focused wine company to having two growth drivers: the wine business and the RTD business. They believe the company has reached an inflection point and is well-positioned for steady growth year-on-year with the building blocks for growth firmly in place, including rapid expansion of RTD business, continued strength in luxury portfolio, wider distribution, increased CSD presence, and upcoming product launches.