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.

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.