Sula Vineyards Reports Stable Q2 FY26 Revenue; Wine Tourism Hits Record High

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

Particulars	Q2 FY26 (INR Cr)	Q2 FY25 (INR Cr)	YoY Change
Own Brands	124.10	127.30	-2.5%
Wine Tourism	13.20	12.20	7.7%
Others	2.30	1.70	35.3%
Revenue from Operations	139.70	141.20	-1.1%

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.54%	-5.36%	-11.64%	-11.43%	-43.19%	-24.53%

Sula Vineyards , India's leading wine producer, has recently encountered a significant tax assessment and reported a decline in quarterly revenue. The company is navigating these challenges while maintaining growth in its wine tourism segment.

Tax Assessment Order

Sula Vineyards received a tax assessment order from the Deputy Commissioner of State Tax, Nashik, demanding ₹6.45 crore under the Central Sales Tax Act for the financial year 2022-2023. The order, received on September 25, includes:

₹3.57 crore for non-submission of F-Forms and C-Forms
₹2.88 crore in interest

In response to this demand, Sula Vineyards has stated that it does not expect any financial implications at this stage. The company plans to file an appeal against the assessment order, demonstrating its commitment to addressing the issue through proper channels.

Quarterly Financial Performance

Alongside the tax assessment news, Sula Vineyards reported its recent quarterly results, which showed mixed performance across different segments:

Segment	Revenue (₹ Crore)	Change (%)
Consolidated Net Revenue	118.30	-7.9
Own-Brand Wine Revenue	102.30	-10.8
Wine Tourism Revenue	13.70	21.8

The company attributed the decline in own-brand wine revenue to a slowdown in urban consumption. However, the wine tourism segment showed robust growth, driven by higher footfalls and record resort occupancy.

Stock Performance

Sula Vineyards' shares closed at ₹264.80, down 1.73%, reflecting investor reaction to the mixed news.

Trading Window Closure

In a separate announcement, Sula Vineyards informed that the trading window for dealing in the company's securities will be closed from October 1 until 48 hours after the declaration of Unaudited Financial Results for the quarter ending September 30. This closure applies to all Directors, Designated Persons, and Connected Persons as defined under the company's Internal Code on Prohibition of Insider Trading.

As Sula Vineyards navigates these regulatory and market challenges, the company continues to focus on its core business while exploring growth opportunities in the wine tourism sector. The upcoming quarterly results will be closely watched by investors for signs of recovery in the wine segment and continued growth in tourism revenues.