Sula Vineyards Sula Vineyards has appointed Chaitanya Rathi as an Additional Non-Executive Non-Independent Director and Ms. Rinku More as Chief Financial Officer (CFO) and Key Managerial Personnel (KMP). The Board of Directors approved both appointments during a meeting held on August 6, 2026, effective immediately for both roles. Mr. Rathi’s appointment is liable to retire by rotation and requires regularisation by shareholders within three months via a postal ballot, ensuring continuity in the company’s leadership structure amidst strategic growth phases.

The appointments were made pursuant to Regulation 30 read with Schedule III, Part A, Para A (7) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board acted on recommendations from the Nomination and Remuneration Committee and the Audit Committee. The company confirmed that Mr. Rathi is not debarred from holding the office of Director by any order passed by the Securities and Exchange Board of India or any other competent authority.

Key Appointments

The Board formalised two critical leadership changes to strengthen governance and financial oversight:

Ms. More had previously been appointed as CFO Designate and Senior Management Personnel effective July 15, 2026, following the resignation of Mr. Abhishek Kapoor as CFO and KMP on July 14, 2026. Her appointment as full CFO and KMP was pending formal Board approval, which was granted in the August meeting.

Leadership Profiles

Mr. Rathi brings over 20 years of experience across Consumer, Alcobev, Fintech, Hospitality, and Private Equity sectors. He spent over a decade with Sula Vineyards across two tenures, most recently serving as Chief Operating Officer from 2019 to 2023, where he led the company through its Initial Public Offering (IPO). His earlier tenure between 2006 and 2013 included scaling the company’s hospitality business into a leading wine tourism destination. Currently, he is the Founder of Searchlight ETA, India’s first Entrepreneurship Through Acquisition platform.

Ms. More is a qualified Chartered Accountant with over 11 years of experience in finance, audit, taxation, and risk assurance. She has been with Sula Vineyards for eight years, holding progressive roles in financial reporting, taxation, and winery finance. She played a key role in strengthening financial processes, automating MIS reporting, and managing IPO-related finance processes.

Shareholder Approval Process

The Board approved seeking shareholder approval for the regularisation of Mr. Rathi’s appointment and the payment of commission to him as a Non-Executive Non-Independent Director. This will be done via a Postal Ballot in accordance with Regulation 17(1C) of the SEBI Listing Regulations and the Companies Act, 2013. The Notice of Postal Ballot and relevant documents will be circulated to shareholders and submitted to the stock exchanges in due course.

What the Numbers Show

The appointment of an internal candidate like Ms. More to the CFO role signals a focus on institutional knowledge and continuity in financial governance, particularly after her involvement in IPO-related finance processes. Meanwhile, bringing back Mr. Rathi, a former COO who led the IPO, to the Board suggests a strategic emphasis on leveraging deep operational history and investor relations expertise during the company’s post-listing growth phase.

Sula Vineyards reported a consolidated net profit of ₹1.06 crore for the quarter ended June 30, 2026, marking a 45% decline from ₹1.94 crore in Q1FY25. Despite the drop in profitability, revenue from operations rose 2% year-on-year to ₹120.79 crore from ₹118.29 crore in the corresponding period last year. The company's standalone net profit stood at ₹4.06 crore, a significant improvement from the standalone loss of ₹0.91 crore recorded in Q1FY25.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 6, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiook & Co LLP, the statutory auditors, issued limited review reports on the financial statements. The results reflect the seasonality inherent in the alcoholic beverages business, where revenue and profits do not accrue evenly throughout the year.

A key contributor to the current quarter's other income was the sale of the company's office property in Mumbai. Sula Vineyards sold the asset for a consideration of ₹27.00 crore, recognizing a profit of ₹1.79 crore in other income during the quarter. This non-operational gain helped offset operational pressures, as total expenses remained relatively stable at ₹121.65 crore compared to ₹116.71 crore in Q1FY25.

Financial Performance Overview

The table below summarises key consolidated financial metrics for the quarter:

On a standalone basis, revenue from operations increased 7.4% to ₹106.65 crore from ₹99.31 crore in Q1FY25. Standalone other income rose significantly to ₹2.64 crore from ₹1.79 crore, driven by the aforementioned property sale. Consequently, standalone profit before tax improved to ₹5.37 crore from a loss of ₹1.10 crore in the prior year period.

Operational Profitability Under Pressure

The decline in EBITDA to ₹164M from ₹183M, alongside a contraction in EBITDA margin to 13.59% from 15.47% in Q1FY25, reflects the pressure on operating profitability during the quarter. The divergence between consolidated and standalone results further highlights the impact of intercompany dynamics and specific group-level adjustments. While the standalone entity posted a robust ₹4.06 crore net profit, the consolidated net profit was lower at ₹1.06 crore, partly attributable to the consolidation of subsidiaries including Artisan Spirits Private Limited and N D Wines Private Limited, and the treatment of exceptional items. Notably, the group recognized an impairment loss of ₹1.82 crore on intangible assets (brands) and related goodwill in FY26, classified as an exceptional item, which weighed on full-year consolidated performance but did not recur in Q1FY26.

The company's paid-up equity share capital remained unchanged at ₹16.89 crore. Basic and diluted earnings per share (EPS) for the consolidated results were ₹0.13, down from ₹0.23 in Q1FY25. In contrast, standalone basic EPS rose to ₹0.48 from a loss of ₹0.11 in the previous year. The management noted that quarterly results may vary due to business seasonality and are not strictly comparable across periods.