Sula Vineyards Cost-Cutting Efforts Bear Fruit, Positioning Company for Strong FY27

Sula Vineyards Limited, India's largest wine producer, reported a 7.1% year-on-year revenue growth in Q4FY26, marking a return to growth after a few challenging quarters. The company's Board met on 6 May 2026 to approve audited financial results for the year ended 31 March 2026. Revenue from operations for Q4FY26 stood at INR 142.6 crore, up from INR 133.1 crore in Q4FY25, driven by improved traction in Own Brands and strong double-digit growth in Wine Tourism. Disciplined cost management during the year enabled the company to maintain absolute EBITDA, and excluding the one-off gain in the prior year base, both EBITDA and profit before tax showed YoY growth — signalling a stronger operational foundation heading into FY27. For the full year FY26, consolidated revenue from operations was INR 596.2 crore, compared to INR 619.4 crore in FY25.

Consolidated Financial Performance

For the full year FY26, the company reported a consolidated net profit of INR 25.65 crore, a significant decline from INR 70.20 crore in FY25. Total income stood at INR 600.52 crore, down from INR 623.31 crore in the prior year, while total expenses increased to INR 563.31 crore from INR 534.97 crore. The financial results include an exceptional item of INR 1.82 crore for the year, representing an impairment loss on intangible assets. The basic and diluted earnings per share (EPS) for the year were INR 3.04, compared to INR 8.32 in FY25. On a standalone basis, the company reported a net profit of INR 3.10 crore for FY26, down from INR 33.40 crore in the previous year.

The following table summarises the consolidated annual financial performance:

Particulars: FY26 (INR Cr) FY25 (INR Cr) Total Income: 600.52 623.31 Total Expenses: 563.31 534.97 Profit Before Tax: 35.39 88.34 Net Profit: 25.65 70.20 Basic EPS (INR): 3.04 8.32

Quarterly and Segment Performance

The company's quarterly and full-year segment performance reflects the divergent trends across its business verticals. Own Brands revenue grew 5.2% YoY in Q4FY26 to INR 115.3 crore, though it declined 6.4% for the full year to INR 511.1 crore. Wine Tourism delivered its highest-ever Q4 revenue of INR 23.9 crore, up 17.5% YoY, while full-year Wine Tourism revenue crossed the INR 100 crore mark for the first time, rising 20.7% YoY to INR 72.8 crore. Q4FY26 consolidated net profit stood at INR 8.6 crore, compared to INR 13.0 crore in Q4FY25. EBITDA for Q4FY26 was INR 27.5 crore, compared to INR 29.0 crore in Q4FY25, impacted by a higher blended grape cost and a one-off gain recorded in Q4FY25. The Q4FY26 EBITDA margin stood at 19.30%, compared to 21.8% in Q4FY25. Full-year EBITDA stood at INR 103.5 crore.

The table below presents the detailed quarterly and annual segment-wise performance:

Particulars (INR Cr): Q4FY26 Q4FY25 YoY FY26 FY25 YoY Own Brands: 115.3 109.6 +5.2% 511.1 546.2 -6.4% Wine Tourism: 23.9 20.4 +17.5% 72.8 60.3 +20.7% Others: 3.2 3.0 +8.8% 12.3 12.9 -4.9% Revenue from Operations: 142.6 133.1 +7.1% 596.2 619.4 -3.7% Net Profit: 8.6 13.0 -33.8% 25.65 70.20 -63.5% EBITDA: 27.5 29.0 -5.2% 103.5 149.1 -30.6% EBITDA Margin %: 19.30% 21.8% — 17.4% 24.1% -671 bps

Elite & Premium Portfolio and Wine Tourism Milestones

The Elite & Premium portfolio was a key growth driver in Q4FY26, with sales rising 11% YoY, led by strong double-digit growth in The Source and RASA brands. The Elite & Premium share of the mix improved by 400 basis points YoY to 79%. Wine Tourism achieved its highest-ever Q4 revenue, supported by an 11% YoY increase in footfalls and a 22% YoY rise in room revenue, following the launch of the company's third resort, The Haven by Sula. The Republic Day long weekend in 2026 set a new record for the highest single-day revenue and footfall, surpassing the previous record set during the Christmas weekend in Q3. Regionally, Telangana, Uttar Pradesh, and Kerala delivered robust growth, while Maharashtra and Karnataka showed a progressively improving trend.

CEO Commentary

Commenting on the results, Mr. Rajeev Samant, CEO of Sula Vineyards, stated: "I am pleased to say that after a few tough quarters, we saw a much better performance in Q4 FY26, marking a return to growth with revenue up 7% YoY. This recovery was driven by a combination of improved traction in Own Brands and another record quarter in Wine Tourism. Wine Tourism once again delivered a strong performance, growing 17% YoY, driven by an 11% increase in footfalls and robust room revenue growth following the launch of The Haven. Importantly, Wine Tourism continued to set new milestones, with revenue crossing the INR 100 crore mark for the first time, including wine sales at our resorts."

Mr. Samant also noted that the company has strategically signed an agreement to acquire Chandon's 19-acre, world-class estate in Dindori, Nashik, to expand its Wine Tourism footprint, with more details to be announced. He added that disciplined cost management enabled the company to maintain absolute EBITDA, and excluding the one-off gain in the prior year base, both EBITDA and PBT showed YoY growth.

Dividend and Corporate Announcements

The Board of Directors has recommended a final dividend of INR 2 per equity share (face value INR 2 each) for FY26, subject to shareholder approval at the upcoming Annual General Meeting. This compares to a dividend of INR 3.6 per share declared for the previous financial year. The record date for determining eligible shareholders has been fixed as Friday, 22 May 2026. The company's 23rd Annual General Meeting has been scheduled for Thursday, 25 June 2026, to be held via video conferencing. The statutory auditors, Walker Chandiok & Co LLP, have issued an unmodified opinion on the standalone and consolidated audited financial results.

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