Sula Vineyards (SULA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 4% YoY to ₹145.44 crore, operating EBITDA increased 7.9% to ₹27.5 crore, and net profit rose 34% to ₹8.09 crore; net debt fell ₹49 crore YoY to ₹306 crore.

• Premiumization and wine tourism supported growth: Elite & Premium sales share reached 82%, up 420 bps, while Wine Tourism revenue rose 24% to ₹16.3 crore.

• The board approved diversification into de-alcoholised wine and development of a York Winery hotel through wholly owned subsidiary ASPL.

Financial highlights

• Consolidated Q2 revenue from operations was ₹145.44 crore versus ₹139.66 crore; H1 revenue was ₹266.23 crore versus ₹257.95 crore, and H1 net profit was ₹9.15 crore versus ₹7.96 crore.

• Net revenue from operations was ₹135.5 crore, up 4%; operating EBITDA was ₹27.5 crore, up 7.9%, and PAT was ₹8.1 crore, up 34%.

• Gross profit was ₹89.7 crore, down 1%; gross margin declined 278 bps to 66.2%, including pressure from higher blended grape costs.

• Standalone Q2 revenue was ₹125.33 crore versus ₹120.26 crore, and net profit was ₹6.14 crore versus ₹3.15 crore; H1 revenue was ₹231.98 crore and net profit ₹10.20 crore.

• Consolidated Q2 profit before tax was ₹10.92 crore versus ₹8.27 crore; EPS was ₹0.95 versus ₹0.71.

Outlook and guidance

• Grape-cost pressure is expected to persist in Q3, ease from Q4 FY27, and normalize from Q1 FY28 as the wine/table grape mix rebalances.

• Management aims to close FY27 strongly and improve EBITDA year on year each quarter; strategy targets faster earnings growth, improved margins and capital efficiency over FY26–FY29.

• Full-year FY27 WIPS accrual is expected at ₹49–50 crore, with H2 typically accounting for the larger share.

• A 30–40-room York Winery hotel is targeted for completion by March 2028, adding ~20% to existing 155-room capacity; investment is estimated at ₹25 crore.

• Wine-based RTDs are planned for Q3 FY27; de-alcoholised wine development will use existing infrastructure and is subject to applicable laws and approvals.