Sula Vineyards drops after Q4 PAT slumps 34% YoY to Rs 9 cr
EBITDA dropped 2.5% to Rs 27.8 crore in Q4 FY26 from Rs 28.5 crore in Q4 FY25. EBITDA margin contracted 192 bps to 19.5% in Q4 FY26 as against 21.4% in Q4 FY25.
Revenue from its own brands rose 5.2% year-on-year to Rs 115.3 crore in Q4 FY26, while wine tourism revenue increased 17% year-on-year to a record Rs 23.9 crore. The growth was supported by an 11% rise in footfalls and a 22% increase in room revenue following the launch of its third resort, The Haven by Sula.
EBITDA was marginally lower year-on-year, impacted by higher blended grape costs due to a higher mix of wine grapes compared with table grapes. The base quarter also included a one-time gain of Rs 3 crore related to the catch-up impact of pricing on closing inventory in Karnataka.
Sales in the Elite and Premium portfolio rose 11% year-on-year during the quarter, led by double-digit growth in The Source and RASA. The Elite and Premium portfolio contributed 79% of sales in Q4FY26, up 400 basis points from a year earlier.
Sula Vineyards CEO, Rajeev Sawant, said, ?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. Within Own Brands, our Elite & Premium portfolio continued to lead the mix, anchored by strong double-digit growth in The Source and RASA. Regionally, Telangana, Uttar Pradesh, and Kerala delivered robust growth, while our two largest markets?Maharashtra and Karnataka?are seeing a progressively improving trend.
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. Notably, the Republic Day long weekend in 2026 set a new record for highest single-day revenue and footfall, surpassing the previous record set during the Christmas weekend in Q3. Importantly, wine tourism continued to set new milestones, with revenue crossing the Rs 100 crore mark for the first time, including wine sales at our resorts. This sustained momentum reinforces our confidence in wine tourism as a powerful and scalable growth engine.
On the profitability front, while EBITDA was impacted by a higher mix of wine grapes and a one-off gain of Rs 3 crore in the prior-year base, the underlying comparable performance improved. Disciplined cost management enabled us to maintain absolute EBITDA, and excluding the one-off gain in the prior year base, both EBITDA and PBT showed a YoY growth.
We have strategically signed an agreement to acquire Chandon?s 19-acre, world-class estate in Dindori, Nashik, to expand our wine tourism footprint. More details will be announced shortly. Encouragingly, demand conditions have improved meaningfully across our key markets, and we are seeing a steady recovery in own brands alongside the sustained strong momentum in wine tourism. Overall, the strategic actions we have taken to strengthen profitability are beginning to show results, positioning us well heading into FY27.?
Meanwhile, the company?s board recommended a final dividend of Rs 2 per equity share of face value Rs 2 each for the financial year ended March 31, 2026, equivalent to 100%. This compares with a dividend of Rs 3.6 per equity share, or 180%, declared for the previous financial year ended March 31, 2025.
Sula Vineyards is principally engaged in the business of the manufacture, purchase, and sale of premium wine and other alcoholic beverages.
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