This document is a regulatory filing submitted to the National Stock Exchange of India Limited (NSE) and BSE Limited. It contains the investor presentation for Sula Vineyards Limited's unaudited financial results for the quarter ended 30th June, 2026 (Q1 FY27), submitted in compliance with SEBI LODR Regulations, specifically Regulation 30(6) read with Schedule III Part A Para A.

Performance Highlights Q1 FY27

  • Net Revenue from Operations stood at ₹112.9 Crore, showing a 3.0% growth Year-on-Year (YoY).
  • Gross Profit was ₹77.3 Crore, up 4.7% YoY.
  • Operating EBITDA was ₹16.6 Crore, reflecting a 9.3% increase YoY.
  • Profit After Tax (PAT) was ₹1.0 Crore, a decrease of 46% YoY from ₹1.9 Crore in Q1 FY26.
  • PAT Margin was 0.9%, down 78 basis points YoY.

Revenue Breakdown

  • Own Brand Revenue was ₹104.3 Crore, up 2.0% YoY.
  • Wine Tourism Revenue was ₹15.4 Crore, showing strong growth of 12.3% YoY. Its contribution to total revenue increased by 120 basis points YoY to 13%.
  • Other Revenue (including BIO) was ₹1.0 Crore, a decrease of 53% YoY.
  • Total Revenue from Operations was ₹120.8 Crore, up 2% YoY.
  • Excise Duty paid was ₹7.9 Crore, down 9% YoY.

Key Operational and Strategic Updates

  • Acquisition Completed: The company completed the acquisition of the 19-acre Chandon Estate in Nashik during Q1 FY27 for a purchase price of ₹20 Crore. The estate has been renamed 'Domaine Rāsā'.
  • Domaine Rāsā Operations: The tasting room, bottle shop, and banquet facilities at the newly acquired estate commenced operations from July 2026. Winery operations are planned to commence from Q4 FY27.
  • Premiumization Trend: The Elite & Premium portfolio grew 6.2% YoY. Its salience (share) improved by 310 basis points YoY to 78% of Own Brand Revenue in Q1 FY27. This growth was led by strong double-digit growth in brands The Source, Rāsā, Sula Merlot, and Sula Muscat Blanc.
  • Market Performance: Geographies like Telangana, Haryana, Chandigarh, CSD (Canteen Stores Department), and Exports delivered strong double-digit growth. The Karnataka market remains soft, with an expectation to recover in the second half of FY27 (H2 FY27).
  • Tourism Expansion: Several planned additions to wine tourism facilities are on track:
  • Amphitheatre expansion at the flagship Sula campus was completed in July 2026.
  • A wine shop at Domaine Dindori is set to open in August 2026.
  • An Events Pavilion (5,000 sq. ft.) at the Sula campus is to open in time for the festive season.
  • These additions are expected to contribute to Wine Tourism revenue in H2 FY27.
  • D2C Business: Direct-to-Consumer wine sales through tourism channels grew 7% YoY in Q1 FY27.

Financial Metrics and Margins

  • Cost of Goods Sold was ₹35.5 Crore, an increase of 24% YoY.
  • Gross Margin was 68.5%, a contraction of 550 basis points YoY from 74.0%. The company attributes this primarily to a higher mix of wine grapes (vs. table grapes) to conserve working capital, which increased the blended grape cost (impact ~150 bps), and an adverse market mix.
  • This higher grape cost is stated to be temporary, expected to subside from Q4 FY27 and normalize from Q1 FY28.
  • Operating Expenses: Employee cost was ₹22.0 Crore (down 6% YoY) and Other Expenses were ₹38.7 Crore (down 2% YoY). Overall opex was reduced by 3% YoY.
  • Operating EBITDA Margin was 14.7% (on Net Revenue), down 197 basis points YoY.
  • Other Income was ₹2.4 Crore, a significant increase of 143% YoY.
  • Depreciation & Amortisation was ₹10.3 Crore, up 12% YoY.
  • Finance Costs were ₹7.2 Crore, down 4% YoY.
  • Profit Before Tax (PBT) was ₹1.5 Crore, down 41% YoY.
  • Tax expense was ₹0.5 Crore, down 19% YoY.

Company Overview and Strengths (from Presentation)

  • Market Position: Described as India's leading wine company with over 50% share in domestic premium wines.
  • Capacity: Winery capacity is 19.2 million liters.
  • Tourism: Among the world's most visited vineyards with over 400,000 visitors in FY26. Operates three luxury vineyard resorts in Nashik with 154 keys and four wine tourism centers.
  • Distribution: Has a presence in 23 states & 7 UTs with ~25,000 points of sale and exports to 29 countries.
  • Sourcing: Has access to ~2,600 acres of contracted vineyards.
  • Sustainability: 75% of annual energy needs are met through solar energy (5 MW installed). 54% of the company's vehicle fleet comprises EVs.

Growth Strategy

  • Expand market penetration for brands 'The Source' and 'Rāsā'.
  • Expand sales to Defense with new listings.
  • Tap new markets.
  • Focus on expanding the resort portfolio with new projects in wine tourism.
  • Pursue strategic investments and acquisitions in wine tourism and the Indian wine industry.