Financial Performance Highlights - Q2 FY27

Revenue Performance:

  • Revenue from Operations: ₹145.4 Cr (4% YoY growth from ₹139.7 Cr in Q2FY26)
  • Net Revenue from Operations: ₹135.5 Cr (4% YoY growth from ₹130.9 Cr in Q2FY26)
  • Excise Duty: ₹9.9 Cr (13% YoY increase from ₹8.8 Cr)

Breakdown of Revenue:

  • Own Brands Revenue: ₹128.3 Cr (3.4% YoY growth from ₹124.1 Cr)
  • Wine Tourism Revenue: ₹16.3 Cr (23.7% YoY growth from ₹13.2 Cr)
  • Others (incl. BIO): ₹0.8 Cr (-66% YoY from ₹2.4 Cr)

Profitability Metrics:

  • Gross Profit: ₹89.7 Cr (-0.6% YoY from ₹90.3 Cr)
  • Gross Margin: 66.2% (declined 278 bps YoY from 69.0%)
  • Operating EBITDA: ₹27.5 Cr (8.1% YoY growth from ₹25.5 Cr)
  • Operating EBITDA Margin: 20.3% (improved 85 bps YoY from 19.4%)
  • Profit Before Tax (PBT): ₹10.9 Cr (32% YoY growth from ₹8.3 Cr)
  • Profit After Tax (PAT): ₹8.1 Cr (34% YoY growth from ₹6.0 Cr)
  • PAT Margin: 5.9% (improved 136 bps YoY from 4.6%)

Expense Items:

  • Cost of Goods Sold: ₹45.8 Cr (13% YoY increase from ₹40.6 Cr)
  • Employee Cost: ₹21.8 Cr (-6% YoY from ₹23.2 Cr)
  • Other Expenses: ₹40.5 Cr (-3% YoY from ₹41.7 Cr)
  • Depreciation & Amortization: ₹10.4 Cr (10% YoY increase from ₹9.5 Cr)
  • Finance Costs: ₹7.2 Cr (-16% YoY from ₹8.6 Cr)
  • Tax: ₹2.8 Cr (26% YoY increase from ₹2.3 Cr)
  • Other Income: ₹1.0 Cr (19% YoY growth from ₹0.8 Cr)

Operational Highlights

Product Portfolio Performance:

  • Elite & Premium portfolio grew 9.0% YoY with salience improving by 420 bps YoY to 82% in Q2 FY27
  • Strong double-digit growth in The Source, Sula's sparkling wines, and Sula Merlot
  • Regional performance: Telangana, Goa, West Bengal, and Exports delivered strong double-digit growth

Wine Tourism Business:

  • Wine Tourism contribution (including wine sales) to Total Revenue increased 220 bps YoY to 19.1% in Q2 FY27
  • Robust room revenue growth (+32% YoY) and higher spend per guest
  • Resort Occupancy at 73% in Q2FY27 (excluding The Haven which launched in October 2026)

Facilities Expansion:

  • Events Pavilion - The Vintage Room: 5,000 sq. ft. indoor banquet facility capable of hosting 300 PAX now open at Sula Nashik campus and already held its first event
  • Fourth hotel announcement: 35-key property alongside The Haven, close to flagship Nashik campus, expected to open in Q4 FY28
  • This will expand room capacity by 20% to 185 Keys

D2C Business:

  • D2C Wine sales up 7% YoY in Q2 & H1 FY27

Strategic Initiatives and Future Plans

New Product Launches:

  • Launching wine-based RTD's in Q3FY27

Capacity and Expansion:

  • Cellar capacity increased by 1 Mn Liters to total capacity of 19.2 Mn Liters
  • Company can expand volumes by 80-85% without further winery capex
  • Focus on expanding 'The Source' and 'Rāsā' national availability
  • Expand sales to Defense with expanded new listings

Growth Targets:

  • Targeting accelerated earnings growth over next 3 years (FY26-FY29) with improved EBITDA margins and capital efficiency
  • Higher blended grape cost impacted gross margins in H1 FY27, but expected to be temporary impact that will subside from Q4 FY27 and normalize from Q1 FY28

Sustainability Initiatives:

  • ~5MW installed solar PV capacity providing 80% of annual energy needs in H1 FY27
  • Generates around 4 million kWH from solar energy at owned and leased facilities
  • Installed 2 MW of Battery Energy Storage systems
  • 54% of company's vehicle fleet comprises EVs
  • Reduced water usage per case produced by over 20% in last five fiscal years

Company Overview Metrics

Market Position:

  • Market leader with >50% share in domestic premium wines
  • Winery capacity: 19.2 Mn liters, amongst top 5 in Asia
  • Sula's Shiraz Cabernet - India's highest selling wine

Distribution Network:

  • Domestic presence in 23 States & 7 UTs
  • 51 Distributors, 12 Corporations, 14 Licensed resellers, 6 Company depots, 3 Defence units
  • Points of sale: ~25,000
  • Exports to 29 countries

Vineyard Supply:

  • ~2,600 acres of vineyards accessible to Sula covering >90% annual supply
  • 2,000+ acres under long term supply contract with built-in price hike
  • Up to 12 years contract life with option to renew

Wine Tourism Facilities:

  • Three Luxury Vineyard Resorts in Nashik with 154 Keys
  • Four Wine Tourism Centers (Tasting & Tours, Gourmet Dining) at Nashik and Karnataka
  • Among world's most visited vineyards with 400K+ visitors in FY26
  • Wine Tourism business grew at 32% CAGR (FY21-26)

Product Portfolio:

  • Wide portfolio of 60+ labels across 14 brands
  • Category split: Elite (23 labels), Premium (15 labels), Economy (10 labels), Popular (6 labels), and Import (10 labels)
  • Sula has won 50+ Awards over the last decade

Historical Performance:

  • Delivered Revenue, Operating EBITDA and PAT CAGR of 6%, 11% and 52% over FY21-26
  • Healthy Balance Sheet with Debt-to-EBITDA at <3x (FY26)