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.

Sula Vineyards Limited has announced its earnings conference call to discuss the financial results for the third quarter and nine months of FY26. The call is scheduled for Monday, February 9, 2026, at 4:00 PM IST, following the company's disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Management Participation

The earnings call will feature key members of the company's leadership team who will present and discuss the financial performance for the quarter and nine months ended December 31, 2025.

Conference Call Access Details

Sula Vineyards has provided comprehensive access options for participants to join the earnings conference call, including both domestic and international numbers.

Investor Relations Contact

For any queries related to the earnings call or investor relations matters, participants can contact Mandar Kapse, IR Head, at +91 7304563606 or via email at mandar.kapse@sulawines.com .

Regulatory Compliance

The announcement was made on January 29, 2026, in compliance with regulatory requirements and was communicated to both the National Stock Exchange of India Limited (NSE Symbol: SULA) and BSE Limited (BSE Scrip Code: 543711). The company's ISIN is INE142Q01026, and the communication was digitally signed by CFO Abhishek Kapoor.

This earnings call represents an important opportunity for investors and analysts to gain insights into Sula Vineyards' operational and financial performance during the third quarter and nine-month period of the current fiscal year.