Pursuant to the regulation 30 of SEBI (LODR) regulation 2015 , Please find attached the transcript of Investor and earning concall, held on Friday, May 30, 2025
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Fratelli Vineyards reported FY25 revenue of INR182 crores, down from INR215 crores in FY24, with volume falling 13% YoY (Q4 volume down ~10%) due to policy changes in Karnataka, Andhra Pradesh and Delhi, election-related dry days, and supply chain disruptions during a transition to a new facility. Gross margins improved 200 bps YoY to ~79%, but EBITDA was under pressure from elevated brand-building and infrastructure investments (brand spend rose to 8% of revenue from 6%). Management guided FY26 revenue of INR250 crores, implying 20-25% growth, and indicated that EBITDA margins should recover meaningfully via operating leverage and lower brand spend as a percentage of sales. The company launched a new RTD wine-based product called Shotgun, expanded capacity by one-third to 5.4 million liters, and reiterated a long-term EBITDA margin target of 20%. Total borrowings stand at ~INR100 crore (10% average cost), and capex for FY26 is expected at ~INR15 crore, with a hospitality/tourism project still in the planning stage for a 2027 opening.
For shareholders, the FY25 print is weak with declining volumes and pressured EBITDA, but management's clear FY26 revenue guidance of INR250 crores and roadmap to 20% EBITDA margin offer a credible recovery story. Key catalysts to watch are the ramp-up of Shotgun across 10+ states, capacity utilization at the new facility, and any capital raise to reduce the INR100 crore debt pile.