Fratelli Vineyards Limited reported a standalone net profit of ₹13.17 lakh for the first quarter ended June 30, 2026, marking a turnaround from a net loss of ₹5.37 lakh in Q1FY25. Despite this improvement at the parent company level, the group recorded a consolidated net loss of ₹366.51 lakh for the quarter, compared to a loss of ₹582.14 lakh in the corresponding period of the previous year. The divergence highlights the financial strain on the core wine manufacturing segment, which continues to operate at a loss while management explores new business opportunities to revive operations.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 11, 2026, in compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, SS Kothari Mehta & Co. LLP. The company also scheduled its 18th Annual General Meeting for September 29, 2025, to be held via video conferencing.

Financial Performance Overview

The standalone revenue from operations stood at ₹7.28 lakh in Q1FY26, down from ₹59.22 lakh in Q4FY25 and ₹8.61 lakh in Q1FY25. Other income contributed significantly to the standalone bottom line, totaling ₹29.18 lakh against total expenses of ₹23.29 lakh. This resulted in a profit before tax of ₹13.17 lakh and a basic earnings per share (EPS) of ₹0.03.

In contrast, the consolidated figures reflect the heavy operational costs associated with the wine business. Total consolidated income was ₹4,537.17 lakh, comprising ₹4,471.51 lakh from operations and ₹65.66 lakh from other sources. Total expenses amounted to ₹5,033.15 lakh, leading to a loss before tax of ₹495.98 lakh. After accounting for deferred tax credits of ₹129.47 lakh, the net loss for the quarter was ₹366.51 lakh, with a diluted EPS of (₹0.84).

Segment Analysis and Operational Challenges

The wine manufacturing and sales segment, which constitutes the bulk of the group's activity, reported revenue of ₹4,471.51 lakh but incurred a segment result of (₹193.78) lakh. This compares to a segment loss of (₹673.23) lakh in Q4FY25 and (₹520.45) lakh in Q1FY25. The "All other reportable segments" contributed negligible revenue of ₹7.28 lakh and a marginal profit of ₹0.26 lakh.

Statutory auditors noted the absence of significant revenue from operations at the holding company level. Management stated it is exploring new business opportunities for the revival of operations and augmentation of revenue. The company affirmed it has adequate surplus funds to meet operational and financial obligations, allowing the financial results to be prepared on a going concern basis. Deferred tax assets were not recognized due to uncertainty regarding future taxable profits.

What the Numbers Show

The primary driver of the group's consolidated loss remains the structural deficit in the wine manufacturing segment, where expenses consistently outpace revenue. While the standalone entity achieved profitability through other income, this does not offset the operational drag from the subsidiary, Fratelli Wines Private Limited, which reported a net loss of ₹379.51 lakh before consolidation adjustments. The reliance on other income for standalone profitability suggests that core trading or operational activities at the parent level are minimal, shifting the strategic focus entirely to turning around the wine business or diversifying into new ventures.

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.