Sula Vineyards

Sula Vineyards reported Q1 FY26 revenue of INR 118 crores, remaining flat year-on-year after adjusting for a one-time WIPS gain of INR 10.4 crores from the previous year. The company's performance was impacted by continued softness in urban demand and temporary disruption in wine placement in Maharashtra during June following an excise duty hike announcement on spirits. Elite and premium wines grew modestly by 1% and now constitute 75% of own brand revenue, up from 71% in Q1 last year. The Source brand delivered strong double-digit growth and contributes nearly 10% to own brand revenue. Wine tourism business grew over 20% with resort occupancy rising to 82% from 70% in the previous year. Operating performance was affected by a 20% increase in cost of goods sold due to a change in wine sourcing model for the tourism business. The company expects operating margin improvement of a couple of hundred basis points in the second half of the financial year. Sula launched a new wine, Muscat Blanc, priced at INR 875 per bottle in Maharashtra and expanded CST portfolio to 9 labels. A new 30-room resort, Haven by Sula, is set to open near York winery before the festive season.