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.

Sula Vineyards , India's largest wine producer, has announced its Q2 FY26 sales update, showcasing stability in overall revenue and impressive growth in its wine tourism segment. The company's performance reflects resilience in a challenging market environment, particularly in its core wine business.

Financial Highlights

Key Performance Insights

Wine Business

• Own Brands revenue declined by 2.5% year-on-year to INR 124.10 crores.
• The decline was primarily attributed to route-to-market disruption in Telangana, the company's third-largest market.
• Excluding Telangana, Own Brands experienced low single-digit growth.
• Elite and premium wines maintained a strong 78% share of the portfolio.

Wine Tourism

• The wine tourism segment achieved its highest-ever Q2 revenue, growing 7.7% year-on-year to INR 13.20 crores.
• Growth was driven by increased footfalls, improved occupancy rates (77% vs. 74% last year), and higher spend per guest.
• Over the Independence Day weekend, the Nashik campus recorded its highest-ever single-day footfall, with record revenues in both the tasting room and restaurant.

Strategic Developments

New Product Launch

Sula introduced Sula Muscat Blanc, a low-alcohol premium wine, which has received a strong market response.

Resort Expansion

The company launched its third resort, The Haven by Sula, near York Winery in Nashik. This 30-key property features:

• Panoramic lake views
• Wine tastings
• Gourmet cuisine
• Luxurious accommodation
• Convention facilities for corporate events and celebrations

Agricultural Outlook

Grape belts across Maharashtra and Karnataka received ample rainfall, setting the stage for Sula's sixth consecutive healthy harvest.

Market Position and Future Outlook

Sula Vineyards continues to maintain its dominant position in the Indian wine market, commanding over 50% of the domestic premium wine market. With a diverse portfolio of over 60 labels and a growing wine tourism business, the company is well-positioned to capitalize on the evolving tastes of Indian consumers.

The company's focus on innovation, quality, and sustainability, coupled with its strong market presence and expanding tourism offerings, suggests a positive outlook for future growth, despite short-term challenges in certain markets.

As the Indian wine industry continues to mature, Sula Vineyards' strategic initiatives and market leadership place it at the forefront of this evolving sector.