Sula Vineyards , India's largest wine producer, has announced the allotment of equity shares under its Employee Stock Option Scheme and released its financial results for the second quarter of fiscal year 2026.

Equity Share Allotment

The company's Board of Directors has allotted 17,200 equity shares with a face value of Rs. 2 each following the exercise of vested stock options under the Employee Stock Option Scheme 2021 (ESOP 2021). The newly issued shares will rank equally with existing shares in all respects. Following this allotment, Sula Vineyards' total issued share capital stands at Rs. 16,88,94,450.

Q2 FY26 Financial Highlights

For the quarter ended September 30, 2025, Sula Vineyards reported the following consolidated financial results:

The company's revenue from operations decreased marginally by 1.10% year-over-year, primarily due to a temporary route-to-market disruption in Telangana, which is Sula's third-largest market. Excluding Telangana, the company reported mid-single-digit revenue growth.

Segment Performance

Own Brands

• Revenue declined by 2.50% YoY to Rs. 124.10 crore.
• The share of Elite & Premium wines remained stable at 78% in Q2 FY26.

Wine Tourism

• This segment reported a record quarter with revenue of Rs. 13.20 crore, up 7.70% YoY.
• Growth was driven by increased footfalls, higher resort occupancy (77% vs 74% in Q2 FY25), and increased spend per guest.

Operational Highlights

• Sula launched its third resort, 'The Haven by Sula,' near York Winery, Nashik, with 30 keys at the end of September 2025, expanding its room capacity by 30% to over 130 keys.
• The company plans to open a new tasting room and expanded restaurant at Domaine Sula, Karnataka, by the end of Q3 FY26.
• The opening of the Samruddhi Highway has improved accessibility, reducing the Mumbai-Nashik drive time by 45 minutes.

Management Commentary

Rajeev Samant, CEO of Sula Vineyards, commented on the results: "We reported steady revenue from operations in Q2 FY26. Our wine tourism business continued its strong growth momentum to deliver a record Q2. Own Brands performance was subdued, primarily due to a short-term route-to-market disruption in Telangana. Excluding the Telangana impact, revenue grew in mid-single digits year-on-year in Q2, supported by healthy double-digit growth in 8 states."

Outlook

The company expects EBITDA margins to improve in H2 FY26, supported by higher WIPS income, the phasing out of high-cost inventory from last year, and sustained healthy traction in Wine Tourism.

Sula Vineyards remains focused on expanding its market presence, developing new products, and enhancing its wine tourism offerings to drive future growth.

Sula Vineyards , India's largest wine producer, has released its financial results for the second quarter of fiscal year 2026, revealing a significant decline in net profit despite relatively stable revenue.

Financial Performance

For Q2 FY26, Sula Vineyards reported:

The company's revenue remained relatively stable at ₹139.66 crore, compared to ₹141.21 crore in the same quarter last year, marking a marginal decrease of 1.1%. However, the net profit saw a substantial decline of 58.4%, falling to ₹6.02 crore from ₹14.48 crore in Q2 FY25.

Operational Highlights

• Wine Tourism Revenue: Sula Vineyards achieved its highest-ever Q2 wine tourism revenue of ₹13.2 crore, representing a 7.7% year-on-year growth.
• Resort Occupancy: The company's resort occupancy improved to 77% in Q2 FY26, up from 74% in Q2 FY25.
• Elite & Premium Portfolio: The share of Elite & Premium wines remained stable at 78% of revenue.
• Popular Portfolio: The company's popular wine brands, including Samara and Port, showed good recovery with double-digit growth.

Market Challenges

Sula Vineyards faced challenges in the Telangana market, its third-largest, due to a short-term route-to-market disruption. The expiry of retail licenses in November 2025 led to destocking ahead of new issuances. However, the company expects a recovery in the latter half of H2 as the license auction process concludes and supply transitions to new holders in December 2025.

Management Commentary

Rajeev Samant, CEO of Sula Vineyards, commented on the results: "We reported steady revenue from operations in Q2 FY26. Our wine tourism business continued its strong growth momentum to deliver a record Q2. Excluding the Telangana impact, revenue grew in mid-single digits year-on-year in Q2, supported by healthy double-digit growth in 8 states - Haryana, Uttar Pradesh, Rajasthan, among others."

Future Outlook

The company remains optimistic about its performance in the second half of FY26, citing:

• Expectations of a more favorable urban demand environment
• Higher Wine Industry Promotion Subsidy (WIPS) income
• Sustained traction in the Wine Tourism segment

Recent Developments

Sula Vineyards has made several key announcements:

1. Reappointment of CEO: Mr. Rajeev Samant has been reappointed as Managing Director & CEO for a three-year term from April 1, 2026, to March 31, 2029, subject to shareholder approval.

2. New Senior Management Appointment: Mr. Sahil Misra has been appointed as Global Brand Ambassador & Head of Exports, effective November 10, 2025.

3. New Resort Launch: The company launched its third resort, 'The Haven by Sula,' in October 2025, featuring 30 keys and a state-of-the-art convention center.

4. Employee Stock Options: The company allotted 17,200 equity shares under its Employee Stock Option Scheme 2021 at an exercise price of ₹170 per share.

As Sula Vineyards navigates through market challenges and continues to invest in its wine tourism segment, investors and industry observers will be watching closely to see how these strategies impact the company's performance in the coming quarters.