Fratelli Vineyards Limited reported a consolidated net loss of ₹2,491.19 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹1,706.26 lakh in the previous year. The company’s Board of Directors approved the audited standalone and consolidated financial results during a meeting held on May 30, 2026. The statutory auditors, S S Kothari Mehta & Co. LLP, issued an unmodified opinion on the results.

Financial Performance

For the quarter ended March 31, 2026, the company reported a consolidated net loss of ₹705.45 lakh. Total income for the quarter stood at ₹3,626.30 lakh, while total expenses were ₹4,574.99 lakh. On a standalone basis, the company reported a net loss of ₹7.79 lakh for the quarter, with total income of ₹90.02 lakh and total expenses of ₹97.81 lakh.

The standalone financial results for the full year showed a net loss of ₹907.64 lakh, a significant increase from the net loss of ₹422.45 lakh in the previous year. Revenue from operations for the standalone entity dropped to ₹67.83 lakh in FY26 from ₹12,471.59 lakh in FY25. The decline was attributed to the non-undertaking of major revenue-generating activities during the year under review.

Segment and Operational Details

The company operates through three reportable segments: Trading in Agro Commodities, Trading in Steel Abrasives, and Wine manufacturing and sales. The Wine manufacturing and sales segment contributed the majority of the consolidated revenue, reporting ₹18,120.04 lakh for the year ended March 31, 2026. The Trading in Agro Commodities segment reported revenue of ₹67.83 lakh for the year.

Key Governance Decisions

During the Board meeting, the company approved the re-appointment of Mr. Sourabh Gupta as the Internal Auditor for the financial year 2026-27. Additionally, the Board approved a Postal Ballot Notice to seek shareholder approval for the sponsorship of higher education for Mr. Keshav Sekhri as a Related Party Transaction. Mr. Ajay Baroota was appointed as the Scrutinizer for the e-voting process.

Investor Call Update

Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, Fratelli Vineyards Limited has informed the exchanges that the audio recording of its earnings call is available. The call was held on June 02, 2026, at 04:00 PM to discuss the audited financial results and operational performance for the fourth quarter and financial year ended March 31, 2026.

Management stated that the company closed FY26 with a 13% year-on-year growth in Q4, achieving breakeven at the operating profit level with a positive EBITDA of ₹1.06 crore. For the full year FY26, net revenue from operations stood at ₹184 crore compared to ₹181 crore in FY25. The company achieved gross margins of 79% for the quarter and the full year.

Strategic Outlook and Guidance

Management provided guidance for FY27, targeting approximately 30% revenue growth to reach around ₹240 crore, which is expected to result in a PAT breakeven. This growth will be driven by the Ready-to-Drink (RTD) segment, specifically the Shotgun brand, which sold approximately 100,000 cases in its first year and is expected to double sales in FY27. The company also plans to launch three new RTD variants in Q1 FY27.

The luxury portfolio, defined as wines greater than ₹2,000 MRP, grew 15% year-on-year in FY26, led by the J'NOON brand which grew 44%. The company holds a market share of more than 50% in the domestic luxury wine segment. Exports doubled during FY26, and the company expects 5% of total revenue to come from exports from FY27 onwards.

On capital expenditure, the company completed approximately ₹10 crore of capex in FY26 and anticipates capex between ₹6 crore and ₹10 crore in FY27. The hospitality project, estimated at ₹70 crore to ₹80 crore, remains in the planning stage and has been deferred by a year.

Fratelli Vineyards Limited has completed the dispatch of postal ballot notices on June 03, 2026, to seek shareholder approval for a related party transaction involving a sponsorship of ₹5 crore. The expenditure, capped at INR 5,00,00,000 over four years, will be incurred by its wholly owned subsidiary, Fratelli Wines Private Limited, to fund the 'Viticulture and Enology Programme (Fall 2026)' at Cornell University, New York. The transaction is intended to align with the company's core wine business objectives.

The beneficiary, Mr. Keshav Sekhri, is an employee of Fratelli Wines Private Limited and the son of Ms. Puja Sekhri, a Director of the company and its subsidiary. Consequently, the transaction qualifies as a related party transaction under Section 2(76) of the Companies Act, 2013, and Regulation 2(1)(zb) of the SEBI LODR Regulations. The Audit Committee has approved the proposal, which requires shareholder consent as an Ordinary Resolution in compliance with Section 188 of the Companies Act, 2013, and Regulation 23 of the SEBI LODR Regulations.

To mitigate risks, the company has stipulated several safeguards, including the execution of a Retention or Service Bond Agreement mandating a minimum service period of five years post-completion of the course. The agreement provides for pro-rata recovery of the sponsorship amount in case of early exit or breach, along with applicable interest. Disbursements will be made directly to the educational institution or against verified documentary evidence, with periodic monitoring of academic progress.

Postal Ballot Schedule

The company has established the following schedule for the postal ballot process, utilizing a remote e-voting facility provided by National Securities Depository Limited (NSDL):

The voting period will commence on June 05, 2026, at 9.00 A.M. (IST) and conclude on July 04, 2026, at 5.00 P.M. (IST). The Board has appointed Shri Ajay Baroota, a Practising Company Secretary, as the Scrutiniser to ensure the process is conducted fairly and transparently. The results will be announced on or before July 06, 2026, and displayed on the company's website and the NSDL e-voting portal.

Sponsorship Details

The resolution seeks authorization for the subsidiary to incur the following expenses: