fratelli vineyards delivered a notable operational turnaround in the first quarter of FY27, reporting an EBITDA of ₹1.1 crore compared to a loss of ₹2.3 crore in Q1FY26. The wine manufacturer’s net revenue from operations rose 22% year-on-year to ₹45.4 crore, underpinned by robust growth in its Ready-to-Drink (RTD) portfolio and steady expansion in the core bottle business. This shift to profitability marks a critical inflection point for the company, demonstrating improved cost discipline and operating leverage despite regulatory headwinds in key markets.

The financial results were submitted pursuant to Regulation 30 read with Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015. The investor presentation, dated August 12, 2026, details the unaudited financial results and operational performance for the quarter ended June 30, 2026.

Financial Performance

The company’s gross profit margins remained resilient at approximately 80%, slightly down from 81% in Q1FY26, reflecting changes in product mix rather than pricing pressure. While finance costs increased due to borrowings for working capital requirements and depreciation expenses rose owing to new asset commissioning, these were offset by higher top-line growth and better cost control.

Segmental Drivers

The RTD business emerged as the primary growth engine, with sales more than doubling compared to Q1FY26. The flagship RTD brand, Shotgun, sold approximately 50,000 cases in the quarter, capturing an estimated 6% market share in states where it is present. The bottle business also contributed to overall growth, expanding by approximately 8% year-on-year. Premiumisation efforts yielded results, with the premium segment growing 7% YoY and the luxury portfolio led by J’noon surging 36% YoY.

Operational Updates

Distribution networks expanded significantly, reaching 31,000 touchpoints overall, with Shotgun alone available at over 9,000 outlets. The company entered two new states for its RTD portfolio—Chhattisgarh and Karnataka—and plans to launch in three to four additional states, including Telangana and Jammu & Kashmir, in H2FY27. Internationally, exports now reach 17 countries, with new listings for Tilt and Shotgun brands.

What the Numbers Show

The divergence between gross margin stability and EBITDA improvement highlights the impact of fixed-cost absorption. With gross margins holding near 80% while revenue grew 22%, the company leveraged its existing infrastructure more efficiently. The transition from an EBITDA loss of ₹2.3 crore to a profit of ₹1.1 crore suggests that the breakeven threshold has been crossed, allowing incremental revenue to flow more directly to the bottom line. However, finance costs remain elevated at ₹3.8 crore, indicating that debt servicing continues to pressure net profitability despite operational gains.

Fratelli Vineyards Limited has announced that Adhiraj Amar Sarin will cease to serve as a Non-Executive Independent Director of the company with effect from the close of business hours on August 8, 2026. This cessation marks the conclusion of his second and final term in the role, as mandated by regulatory guidelines for independent directors. Consequently, Mr. Sarin will also step down from his positions as member or chairperson of various Board committees effective the same date.

The company issued the intimation pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was submitted to the Listing Compliance Department of BSE Limited on August 8, 2026. The filing confirms that the change is due to the expiry of his tenure rather than resignation, removal, or other causes.

Key Details of Cessation

The following table outlines the specific details regarding the change in key managerial personnel as disclosed in the filing:

The Board of Directors placed on record its appreciation for the valuable contribution and guidance provided by Adhiraj Amar Sarin during his tenure. The company noted that he will cease to be a member or chairperson of the Committees of the Board with effect from August 8, 2026.

Regulatory Compliance

The announcement was made in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, regarding changes in Key Managerial Personnel. Additionally, the filing addressed requirements under BSE Circular No. LIST/COMP/14/2018-19 and NSE Circular No. NSE/CML/2018/24, both dated June 20, 2018, though no additional disclosures were applicable under these specific circulars for this transaction.

Monika Gupta, Company Secretary of Fratelli Vineyards Limited (FCS 8015), signed the disclosure. The company’s registered office is located at No. 6, Sultanpur, Mandi Road, Mehrauli, New Delhi. The scrip code for the company on BSE is 541741, and the ISIN is INE401Z01019.