Sula Vineyards Limited has successfully obtained Central Government approval for the re-appointment of Mr. Rajeev Samant as Managing Director and Chief Executive Officer, completing the regulatory approval process that began in November 2025.

Central Government Approval Received

The company announced on 20th March, 2026 that it has received approval from the Central Government under Section 196 read with Schedule V of the Companies Act, 2013. This approval was mandatory since Mr. Rajeev Samant qualifies as a non-resident under applicable provisions, making his re-appointment subject to Central Government clearance rather than standard company procedures.

Previous Approvals Obtained

The re-appointment process had already secured necessary internal approvals before seeking Central Government clearance. The Board of Directors approved Mr. Samant's re-appointment at their meeting held on 10th November, 2025. Subsequently, shareholders provided their approval through a Postal Ballot conducted on 12th December, 2025.

Regulatory Compliance Requirements

The company filed the necessary application and submissions with the Ministry of Corporate Affairs as required under the Companies Act, 2013. Since Mr. Samant's re-appointment was not in conformity with conditions specified under Schedule V due to his non-resident status, Central Government approval became a mandatory regulatory requirement.

Leadership Continuity Secured

With all regulatory approvals now in place, Mr. Rajeev Samant will continue leading Sula Vineyards as Managing Director and Chief Executive Officer for the next three years. The approval ensures leadership continuity for the wine company as it moves forward with its business operations and strategic initiatives.

The company has informed both NSE and BSE about this development in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically under Regulation 30(7) requirements for material disclosures.

Sula Vineyards Limited announced its consolidated financial results for Q3FY26 and nine months ended 31st December 2025, revealing mixed performance with challenges in core wine business offset by exceptional growth in wine tourism. India's largest wine producer reported revenue of INR 196 crore and EBITDA of INR 32 crore for the quarter, while wine tourism delivered record-breaking performance.

Financial Performance Overview

The company's consolidated financial performance for Q3FY26 showed significant declines in profitability despite stable revenue performance:

Business Segment Performance Analysis

The quarter witnessed contrasting performance across business segments, with wine tourism emerging as a key growth driver:

Wine Tourism Achieves Record Performance

Wine Tourism delivered exceptional results, achieving the highest ever quarterly revenue of INR 22.0 crore in Q3FY26, representing a robust 33.7% year-on-year growth. This outstanding performance was driven by a 17% increase in visitor footfalls and the successful launch of The Haven by Sula resort. The company added 30 keys in Phase 1 during October 2025, followed by an additional 20 keys in Phase 2 launched in December 2025, increasing overall room capacity by approximately 50% to 154 keys. Despite significant room additions, occupancy remained strong at 79%.

Nine-Month Performance and Market Challenges

For the nine-month period ended 31st December 2025, the company reported revenue from operations of INR 453.63 crore compared to INR 486.29 crore in the previous year, reflecting a 6.7% decline:

Operational Challenges and Strategic Initiatives

CEO Rajeev Samant attributed Q3 performance challenges primarily to one-time tactical destocking undertaken in Karnataka, the company's second-largest market, aimed at right-sizing channel inventory and optimizing working capital amid subdued demand in Bangalore. Excluding this one-time destocking impact, Q3 revenue remained flat on a year-on-year basis. The company recognized an exceptional item of INR 1.70 crore related to impairment loss on certain intangible assets including brands and related goodwill during the quarter.

Market Recovery and Future Outlook

Despite quarterly challenges, the company reported encouraging signs of recovery across key markets. Healthy double-digit growth was observed in Telangana, Uttar Pradesh, Rajasthan, Goa, and CSD markets during the quarter. Maharashtra, the company's largest market, showed clear recovery and returned to consistent growth after a difficult period. The Elite & Premium portfolio share remained stable at approximately 80%, while 'The Source' range continued delivering strong double-digit growth, increasing its contribution to Own Brands by 250 basis points year-on-year to 11% in Q3FY26.