Sula Vineyards (SULA) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue grew 7% year-on-year, driven by improved own brands, strong wine tourism, and double-digit growth in elite and premium portfolios.

• Wine tourism revenue increased 17–17.5% YoY in Q4, with record footfalls, new resort launches, and overall wine tourism revenue crossing INR 100 crore for the first time.

• Regional growth was robust in Telangana, UP, and Kerala, with Maharashtra and Karnataka showing improved demand.

• Signed agreement to acquire a 19-acre wine estate in Dindori, Nashik, to expand wine tourism, pending regulatory approvals.

• Audited standalone and consolidated financial results for FY26 were approved, with an unmodified audit opinion issued by the statutory auditors.

Financial highlights

• Q4 FY26 revenue was INR 142.6 crore (+7% YoY); full-year FY26 consolidated revenue was INR 596.19 crore, down from INR 619.38 crore in FY25.

• Gross profit in Q4 FY26 was INR 100.8 crore (+3.1% YoY); gross margin declined to 70.7% in Q4 and 65.3% for FY26 due to higher grape costs.

• FY26 consolidated net profit was INR 25.65 crore, a significant decrease from INR 70.20 crore in FY25.

• EBITDA for FY26 declined 25% YoY (excluding one-time gain), with operating EBITDA margin at 17.4%, down from 24.1% in FY25.

• Net cash from operations increased 70% YoY to INR 99 crore; consolidated net cash generated from operating activities was INR 100.75 crore for FY26.

Outlook and guidance

• Q4 momentum is expected to continue into FY27, with optimism for further growth in own brands and wine tourism.

• Strategic actions to reduce costs and improve capital efficiency are expected to position the business well for FY27.

• Grape mix impact will weigh on margins for the next couple of quarters, but cost reduction and lower inventory costs should help.

• No guidance for a return to 30% operating margins soon, but management is optimistic about gradual margin improvement.

• Dividend payout is subject to shareholder approval at the AGM and will be paid within 30 days of approval.