Sula Vineyards published its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, in Mint, Navshakti, and Free Press Journal on August 7, 2026. The publication followed approval by the Board of Directors at a meeting held on August 6, 2026. The filing confirms compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring investors have access to the latest performance metrics through both digital and print media.

The quarterly results reveal a mixed financial picture for the winemaker. Consolidated net profit declined 45% year-on-year to ₹1.06 crore from ₹1.94 crore in Q1FY25. However, revenue from operations grew modestly by 2% to ₹120.79 crore, up from ₹118.29 crore in the corresponding period last year. Standalone net profit showed a sharper turnaround, rising to ₹4.06 crore from a loss of ₹0.91 crore in Q1FY25, driven by operational efficiencies and specific income items.

Financial Performance Overview

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

Standalone 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, primarily due to the sale of an office property in Mumbai. 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.

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 pressure on operating profitability. The divergence between consolidated and standalone results highlights the impact of intercompany dynamics. 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.

Walker Chandiook & Co LLP, the statutory auditors, issued limited review reports on the financial statements. The company noted that quarterly results may vary due to business seasonality inherent in the alcoholic beverages sector. The 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.

Sula Vineyards Limited has paid a penalty of ₹11,800 (inclusive of GST) each to the National Stock Exchange of India Limited (NSE) and BSE Limited, following a finding of non-compliance with Regulation 29(2)/29(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The non-compliance related to the omission of a dividend-related agenda item from the prior intimation issued ahead of the Board Meeting held on 6th May, 2026. The penalty was paid on 26th June, 2026, within the prescribed timeline set by both exchanges.

Background of the Non-Compliance

Prior to the Board Meeting scheduled for 6th May, 2026, Sula Vineyards issued an intimation dated 29th April, 2026 under Regulation 29 of the SEBI (LODR) Regulations, 2015. The intimation included consideration and approval of the Audited Financial Results (Standalone and Consolidated) for the quarter and financial year ended 31st March, 2026, but did not include any agenda item relating to dividend recommendation. The Company stated that, at the time of issuing the prior intimation, the management had not proposed any dividend declaration, given the Company's financial performance and overall financial position for FY 2025-26, and that including such an item without any proposal before the Board was considered inappropriate as it could have created unwarranted market expectations.

During the course of the Board Meeting, the Non-Executive Directors, including Independent Directors, suo-moto proposed consideration of a modest dividend. After detailed deliberations on the Company's financial position, cash flow outlook, and future requirements, the Board approved the recommendation of a final dividend of ₹2 per equity share for FY 2025-26 under "Any Other Business." The outcome, including the dividend recommendation, was promptly intimated to the stock exchanges upon conclusion of the meeting. Both NSE and BSE subsequently treated the omission of the dividend agenda item from the prior intimation as a non-compliance with Regulation 29.

Fine Levied and Payment Details

Both NSE and BSE issued notices dated 15th June, 2026, imposing fines for the identified non-compliance. The fine structure, as levied by the exchanges, is detailed below:

The payment details submitted to BSE and NSE are as follows:

Company's Representation and Board Review

Sula Vineyards submitted detailed representations to both exchanges seeking reconsideration of the penalty, citing the bona-fide circumstances, absence of any intention to withhold material information, and the Company's consistent compliance track record. NSE advised the Company to submit a formal waiver application through the NEAPS portal, noting that the non-refundable processing fee for such an application amounted to ₹10,000 plus 18% GST — equivalent to the fine amount itself. Given this equivalence and the absence of a positive response from the exchanges on the representations, the Company opted to pay the penalty without prejudice to its rights and contentions.

The Board of Directors, at its meeting held on 6th August, 2026, reviewed the matter in detail, took note of the non-compliance, and confirmed that the penalty had been duly remitted within the prescribed timeline. The Board also confirmed that the Promoters had been informed of the identified non-compliance. Going forward, the Board advised that the Company shall, as a matter of abundant caution, include the agenda item 'Recommendation of Dividend, if any' in all prior intimations issued under Regulation 29 of the SEBI Listing Regulations, irrespective of whether the management proposes to recommend a dividend. The Board reaffirmed its commitment to maintaining the highest standards of corporate governance and regulatory compliance.