Sula Vineyards , India's leading wine producer, has reported a stable revenue of INR 140.00 crores for Q2 FY26, maintaining its market position despite facing temporary disruptions in the Telangana market. The company's performance highlights its resilience in a challenging environment and showcases strong growth in its Wine Tourism segment.

Revenue and Market Performance

Sula Vineyards maintained its revenue at INR 140.00 crores in Q2 FY26, demonstrating stability in a complex market scenario. The company's Own Brands segment saw a 1.5% increase in volume, although value declined by 2.5% due to an unfavorable sales mix. The Elite & Premium brands, which constitute 78% of the portfolio, experienced a 3% decline.

Notably, The Source range continued its robust performance, achieving double-digit growth for multiple consecutive quarters. This premium offering now accounts for 10% of Sula's Own Brands revenue, marking significant progress from the previous year.

Wine Tourism: A Bright Spot

The Wine Tourism business emerged as a standout performer, delivering record 8% growth in Q2 and an impressive 15% growth in H1 FY26. This segment's success was driven by improvements across key metrics:

• Resort occupancy improved by 350 basis points year-over-year to 77%
• Average room revenue increased by 1%
• Visitor footfall rose by 2%, reaching approximately 78,000 guests

Sula Vineyards has expanded its hospitality offerings with the launch of its third resort, 'The Haven by Sula', near York Winery in Nashik. This new 30-key property follows an asset-light model and is expected to contribute significantly to Wine Tourism revenue in H2 FY26.

Market Challenges and Opportunities

While facing temporary disruptions in the Telangana market due to retail license expirations, Sula Vineyards saw strong performance in other regions:

• Eight markets, including Haryana, Uttar Pradesh, and Rajasthan, delivered strong double-digit growth
• The CSD (Canteen Stores Department) segment more than doubled its revenue year-on-year

The company expects improved performance in H2 FY26, driven by the recovery of the Telangana market, higher WIPS (Wine Industry Promotion Subsidy) accruals, and sustained momentum in Wine Tourism.

Financial Outlook

Despite challenges, Sula Vineyards maintains a positive outlook:

• Operating margins are projected to improve by 250 basis points year-on-year in H2 FY26
• Capital expenditure for FY26 and FY27 is expected to be in the range of INR 30.00-35.00 crores annually

Strategic Initiatives

Sula Vineyards is actively pursuing several strategic initiatives to drive growth:

1. Expanding The Source range nationally, with recent entries into key markets like Haryana and Delhi
2. Launching new products, including India's first premium low-alcohol wine, Sula Muscat Blanc
3. Exploring opportunities in the imported wine distribution business in anticipation of reduced import duties
4. Continuing to invest in sustainability, with recent installations of battery energy storage systems

Market Position and Future Outlook

Rajeev Samant, Founder and CEO of Sula Vineyards, expressed confidence in the company's market position, stating, "We believe that Sula has continued to gain market share in the overall wine market in H1 despite having lower S&D spend than our key competitors." The company is well-positioned to benefit from the growing appeal of experiential travel and its differentiated offerings in the Wine Tourism segment.

With its strategic focus on premium brands, expansion into new markets, and continued innovation in product offerings, Sula Vineyards is poised for growth in the coming quarters, reaffirming its status as a leader in the Indian wine industry.

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.