Fratelli Vineyards

Fratelli Vineyards Limited disclosed an inter-se transfer of up to 88,89,784 equity shares among its promoter and promoter group through an off-market transaction without consideration. Bhupinder Kumar Sekhri will acquire shares from four promoters: 27,13,269 shares from Shobha Sekhri, 7,22,891 shares from Gaurav Sekhri, 38,33,477 shares from Aarti Sekhri, and 16,20,147 shares from Puja Sekhri. The transfer represents 20.54% of the company's share capital and is structured as a gift transaction. The transaction is scheduled to complete on or before September 30, 2025. This transfer falls under exemption provided by SEBI SAST Regulations 10(1)(a)(i) and (ii), meaning no open offer is required. The aggregate promoter holding will remain unchanged after the transaction. The 60-day volume weighted average market price was Rs. 136.14.

Investor Porinju V Veliyath purchased 5 lakh shares of Fratelli Vineyards at Rs 109.70 per share through bulk deals, totaling Rs 5.5 crore. The stock closed at Rs 109.70 on BSE with a 5% gain from the previous day's Rs 104.50. Fratelli Vineyards has declined 72% over the past year and 67% year-to-date, trading below its 50-day and 200-day moving averages of Rs 136 and Rs 200 respectively. The stock shows oversold conditions with RSI near 20 and MFI near 7. The company reported a consolidated net loss of Rs 5.8 crore in quarterly results, improved from Rs 11 crore loss in the previous quarter but down from Rs 2.7 crore profit in the same quarter last year. Revenue fell 80% to Rs 29 crore from Rs 144.2 crore year-over-year. Porinju's portfolio includes 11 publicly held stocks worth over Rs 222.6 crore. The investment coincides with GST rationalization that introduces a 40% tax rate on sin goods, moving from the previous 28% rate.

Fratelli Vineyards Limited reported a 16% year-over-year decline in net sales for Q1 FY26, though premium and above segments contributed over 70% of total sales. The company achieved gross margin improvements of 700 basis points, while EBITDA margins were softer due to investments in new initiatives. Finance costs increased due to borrowings for capacity expansion, and depreciation rose with commissioning of new assets. The company expanded its winery capacity to 5.4 million liters with a new 47,000 sq ft facility in Akluj. Fratelli entered 3 new international markets, bringing its presence to 12 countries, and established operations in Chhattisgarh, reaching 29 states and union territories. The company launched Shotgun, a wine-based ready-to-drink product in February 2025, targeting presence across 15 states by end of FY26. Management expects 15-20% top-line growth for FY26 and aims to improve EBITDA margins beyond 10%. The company faced temporary disruption in Maharashtra market due to excise duty changes on spirits and noted the impact of the UK-India Free Trade Agreement. Fratelli commands roughly one-third share of the Indian wine market, which is expected to grow 15-20% annually for the next 3-4 years.