Fratelli Vineyards Reports Stable Q2 Revenue at INR 46.3 Crores, Turns EBITDA Positive

Fratelli Vineyards , a leading Indian winemaker, has reported stable revenue of INR 46.3 crores in Q2 FY26, compared to INR 46.4 crores in Q2 FY25. The company has achieved EBITDA positive status at INR 1.47 crores, despite facing industry headwinds and temporary disruptions in the Telangana and Karnataka markets.

Key Financial Highlights

Metric	Q2 FY26	Q1 FY26	Q2 FY25	H1 FY26	H1 FY25
Net Revenue (₹ Cr)	46.30	37.00	46.40	83.40	90.50
Gross Profit (₹ Cr)	36.70	30.00	37.40	66.70	74.30
Gross Profit Margin	79%	81%	80%	80%	82%
EBITDA (₹ Cr)	1.50	-2.30	1.30	-0.70	5.70
EBITDA Margin	3.2%	-6%	2.8%	-0.9%	6%

Operational Highlights

Fratelli Vineyards continues to dominate the luxury segment with over 50% market share, delivering an 18% year-on-year growth. The company has expanded its domestic footprint to 29 states/UTs, entering Chhattisgarh in H1 FY26.

Strategic Initiatives

The company launched its Ready-to-Drink (RTD) product 'Shotgun' in February 2025, which has shown promising results. Within six months of its launch, Shotgun has captured a 6% market share in the states where it's present, expanding its reach to over 6,000 touchpoints across 11 states.

Market Expansion and Innovation

Fratelli Vineyards has been actively expanding its international presence, entering new export markets. Exports now contribute approximately 3% of total revenue in Q2.

The company continues to innovate, having launched Pinot Noir in July 2024 as part of its single varietal range. Pinot Noir is now available in 1,450 outlets, further strengthening Fratelli Vineyards' product portfolio.

Sustainability Efforts

Fratelli Vineyards has made significant strides in sustainability, with 45% of energy requirements at the Akluj Winery now met through solar power. The company has installed a 520 kW solar capacity, which is expected to result in electricity cost savings of approximately ₹50 lakhs.

Future Outlook

Despite the stable revenue and positive EBITDA in Q2, the overall EBITDA for H1 FY26 remains negative. This suggests that Fratelli Vineyards is in an investment phase, focusing on long-term growth strategies that may impact short-term profitability. The company's focus on premiumization, increased touchpoints, and foray into new markets, coupled with the success of its RTD format, positions Fratelli Vineyards well for future growth in India's expanding wine market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.78%	+0.79%	-9.21%	-21.74%	-66.09%	-69.49%

Fratelli Vineyards Limited , a prominent player in the Indian wine industry, has recently strengthened its equity base through a strategic warrant conversion. The company has allotted 44,500 new equity shares, each with a face value of Rs. 10.00, at an issue price of Rs. 300.00 per share. This move comes as part of the company's ongoing efforts to bolster its capital structure and support future growth initiatives.

Key Details of the Allotment

The allotment stems from the conversion of warrants originally issued on August 23, 2024, on a preferential basis. Here are the crucial aspects of this corporate action:

Aspect	Details
Number of Shares Allotted	44,500
Face Value per Share	Rs. 10.00
Issue Price per Share	Rs. 300.00
Allottee	Shobha Sekhri (Promoter)
Total Amount Raised	Rs. 1,33,50,000.00

Impact on Share Capital

The warrant conversion has led to a modest increase in the company's paid-up equity share capital:

Pre-allotment: Rs. 43,42,78,940.00 (4,34,27,894 equity shares)
Post-allotment: Rs. 43,47,23,940.00 (4,34,72,394 equity shares)

Financial Implications

Fratelli Vineyards received Rs. 1,00,12,500.00 as the balance subscription amount, representing 75% of the total consideration. The allottee had previously paid 25% at the time of warrant allotment, adhering to the standard practice for such preferential issues.

Shareholding Changes

The allotment has slightly altered the promoter shareholding:

Shareholder	Pre-Issue Holding	Post-Issue Holding
Shobha Sekhri	31,76,048 (7.31%)	32,20,548 (7.41%)

This increase, though marginal, reinforces the promoter's commitment to the company's long-term prospects.

Regulatory Compliance

The allotment was made in compliance with the Securities and Exchange Board of India (SEBI) regulations, specifically under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This ensures transparency and adherence to regulatory standards in the capital markets.

Conclusion

This warrant conversion by Fratelli Vineyards represents a strategic move to enhance its equity base. While the immediate impact on the overall share capital is modest, it signals ongoing investor confidence, particularly from the promoter group. As the Indian wine industry continues to evolve, such capital actions may play a crucial role in positioning Fratelli Vineyards for future growth opportunities and market expansion.