Financial Performance Highlights

Q4 FY26 Performance (Standalone)

  • Net Revenue from Operations: ₹36.3 crore (13% growth YoY from ₹32.0 crore in Q4 FY25)
  • Gross Profit: ₹28.8 crore (Gross Profit Margin: 79.3% vs 73.8% in Q4 FY25)
  • EBITDA: -₹3.7 crore (improved from -₹7.1 crore in Q4 FY25; EBITDA Margin: -10.1% vs -22.1%)
  • Finance Cost: ₹3.6 crore (increased from ₹2.3 crore in Q4 FY25)
  • Depreciation: ₹2.1 crore (increased from ₹1.6 crore in Q4 FY25)
  • Profit After Tax: -₹7.0 crore (improved from -₹8.0 crore in Q4 FY25)

Full Year FY26 Performance (Standalone)

  • Net Revenue from Operations: ₹184.1 crore (1% growth YoY from ₹181.9 crore in FY25)
  • Gross Profit: ₹144.3 crore (Gross Profit Margin: 78.4% vs 79.0% in FY25)
  • EBITDA: ₹1.06 crore (improved from ₹0.23 crore in FY25; EBITDA Margin: 0.57% vs 0.13%)
  • Finance Cost: ₹13.5 crore (increased from ₹10.6 crore in FY25)
  • Depreciation: ₹8.8 crore (increased from ₹7.2 crore in FY25)
  • Profit After Tax: -₹15.80 crore (worsened from -₹12.8 crore in FY25)

Operational and Strategic Highlights

Business Performance

  • Luxury Portfolio: Grew 15% YoY in FY26, with 8% growth in H2 FY26
  • J'noon Brand: Delivered 44% YoY growth in FY26, with 27% growth in H2 FY26
  • Sette Brand: Delivered 5% YoY growth in FY26
  • Premium Segment: Declined 16% YoY in FY26, primarily impacted by regulatory disruptions in Maharashtra, Telangana, Uttarakhand, and Delhi
  • Pinot Noir: Contributed ~2% of total revenue in its first year of launch with ~1,700 WOD additions
  • Shotgun RTD: Sold ~100,000 cases in FY26 with distribution expanded to 18 states

Channel & Market Expansion

  • International Expansion: Expanded to 15 countries; export revenue doubled in FY26
  • CSD Channel: Merlot and Noi Sparkling received CSD approval with sales expected from H1 FY27; Shotgun sales scheduled from H2 FY27
  • New CSD Launches: Commenced sales of Tilt Red, Tilt Bubbly Rosé (wine-in-a-can format), and Shiraz Rosé through CSD in Q4 FY26

New Product Launches

  • Fratelli Brut: Launched in November 2025 at MRP ~₹1,500; expanded to 4 states; target of 14 states in FY27
  • Sette 15th Anniversary Limited Edition: Collaboration with Manish Malhotra at MRP ~₹3,500; available in 5 states since January 2026; target of 7 states in FY27
  • Shotgun RTD Expansion: Added 3 new flavors (Berry Blast, Mango Blast, Patiala Strong)
  • Shiraz Cabernet: To be launched in Q1 FY27
  • F7 Expansion: Targeting launch in Goa, Haryana, Karnataka, UP, and Kerala

Sustainability Initiatives

  • Solar Energy: 520 kW solar capacity installed meeting ~45% of Akluj Winery's energy requirements
  • Harvest 2026: Managed quality despite heavy rainfall challenges

Market Position and Awards

  • Market Leadership: Positioned as market leader in luxury category with J'NOON & Sette
  • Awards: Won 40+ international and national awards in FY25-26; over 220 total awards
  • Portfolio: 25 labels with >70% in premium & above category; exports to 15 countries; 60% red wine, 35% white + sparkling wine, 5% rosé

India-EU FTA Impact Analysis

The presentation discussed potential implications of India-EU Free Trade Agreement:

  • Current Duty: ~150% import duty on wines
  • Proposed Reduction: Phased reduction over 7-10 years to ~20% for premium wines and ~30% for mid-priced wines
  • Minimum Import Price: Duty benefits apply only to wines imported above EUR 2.50 CIF threshold per 750ml bottle
  • Expected Impact: Limited price overlap with EU wines expected at ~₹2,000 MRP in Maharashtra; gradual competitive impact rather than immediate disruption

Vision 2030 and Growth Targets

  • Revenue Target: ₹500+ crore with 20%+ CAGR growth
  • EBITDA Margin Target: 20%+ by FY30
  • Hospitality Project: Planning stage with estimated investment of ₹70-80 crore
  • Growth Drivers: Premiumization, Shotgun RTD expansion, increased touchpoints (currently 31,000), new market entry, hospitality venture

Board and Management

Key Directors:

  • Gaurav Sekhri (Chairman and Managing Director)
  • Aditya Brij Sekhri (Director)
  • Puja Sekhri (Director)
  • Sanjay Kumar Jain (Independent Director)
  • Nakul Nitin Zaveri (Independent Director)
  • Adhiraj Sarin (Independent Director)
  • Rahul Narang (Independent Director)

Corporate Social Responsibility

  • Employment: Over 300 rural families employed through vineyard development; 700+ individuals in Fratelli workforce
  • Community Initiatives: Adopted Zilha Parishad School in Shipaiwadi; installed 'Water ATM' in Garwad village serving 2,000+ villagers
  • Sustainable Practices: 95% of packaging materials sourced domestically

Industry Context and Market Opportunities

  • Market Size: Wine accounts for <1% of India's alcohol market
  • Growth Drivers: Urbanization (100M increase), rising affluence, rural consumption growth (4.3x vs urban 3.5x), youth demographics
  • RTD Market: Wine RTD industry grew ~25% in FY26; Shotgun captured ~6% market share as of March 31, 2026
  • Target Markets: Expanding presence in Tier 2 and Tier 3 cities

Investor Relations Contacts

  • Company Secretary: Ms. Monika Gupta (secretarial@fratelliwines.in)
  • Investor Relations: Ms. Priya Sen (priya@goindiaadvisors.com, +91 8334841047) and Ms. Riddhi Shah (riddhi@goindiaadvisors.com, +91 7303699539)