Urban Palate Pauses: Sula Vineyards Feels the Chill in Q1 FY26

Unknown Apr 02, 2026 2 Views

Sula Vineyards Ltd posted a 7.9% yearonyear drop in revenue from operations for Q1 FY26, totalling Rs. 90.9 crore — down from

Rs. 98.7 crore in Q1 FY25. This marks a challenging start to the fiscal amid weak urban demand.

Key Highlights:

Own brands contributed Rs. 78 crore, down 10% y/y, hurt by tepid urban discretionary spends and intensified competition in midrange offerings.
Wine tourism revenue grew by 13%, reaching Rs. 12.9 crore, driven by improved conversion and sustained visitor interest.
EBITDA declined 10% to Rs. 33.2 crore, with margin contraction to 36.5% from 37.3% last year.
Gross margins remained stable at 62%, aided by operational efficiencies and premium positioning.

Business Outlook:

Sula aims to balance its portfolio by accelerating premiumization, deepening rural retail reach, and enhancing winery experiences.

Sources: Economic Times, Business Standard, Finology Ticker, Way2Wealth