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 reported a steady performance for the second quarter of fiscal year 2026, while also announcing key leadership changes and expansion plans.

Financial Performance

For Q2 FY26, Sula Vineyards reported:

• Revenue from operations: ₹139.66 crore (1.1% year-over-year decrease)
• Gross profit: ₹90.30 crore (13.5% year-over-year decrease)
• Operating EBITDA: ₹25.50 crore (24.3% year-over-year decrease)

The company's performance was impacted by a temporary route-to-market disruption in Telangana, its third-largest market. However, excluding Telangana, Sula's Own Brands revenue grew in the mid-single digits year-over-year.

Wine Tourism Segment Performance

Despite challenges in the core business, Sula's wine tourism segment reported a record Q2 performance:

• Wine tourism revenue: ₹13.20 crore (7.7% year-over-year increase)
• Resort occupancy: 77% (up from 74% in Q2 FY25)

This growth was driven by increased footfalls, higher resort occupancy, and increased spend per guest.

Product Mix and Market Performance

• Elite & Premium wines: Maintained a stable share of 78% in Q2 FY26
• Strong double-digit growth reported in eight states, including Haryana, Uttar Pradesh, and Rajasthan
• Sales to Canteen Stores Department (CSD) nearly doubled year-over-year

Leadership Changes

• Rajeev Samant: Re-appointed as Managing Director & CEO for a three-year term (April 1, 2026, to March 31, 2029), subject to shareholder approval
• Sahil Misra: Appointed as Global Brand Ambassador & Head of Exports, effective November 10, 2025

Expansion and Future Outlook

1. New Resort Launch:

   • 'The Haven by Sula' near York Winery in Nashik
   • 30-key resort, expanding room capacity by 30% to over 130 keys
   • Second phase adding 20 more keys, planned to open by March 2026

2. Karnataka Expansion:

   • New tasting room and restaurant expansion at Domaine Sula by end of Q3 FY26

3. Infrastructure Improvement:

   • Opening of Samruddhi Highway, reducing Mumbai to Nashik travel time by 45 minutes

Rajeev Samant, CEO of Sula Vineyards, commented: "We reported steady revenue from operations in Q2 FY26. Our wine tourism business continued its strong growth momentum to deliver a record Q2. Looking ahead, Sula remains well-positioned to deliver improved operating profitability in the second half of FY26."

As India's wine market continues to evolve, Sula Vineyards' strategic focus on premium offerings and wine tourism positions it well for future growth, despite short-term market challenges.