as attached
SULA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Sula Vineyards reported Q4 FY26 revenue of INR 142.6 Cr, up 7.1% YoY, marking a return to growth driven by improved own brands traction and strong wine tourism. However, profitability declined significantly: PAT fell 34% YoY to INR 8.6 Cr, while FY26 PAT dropped 63% to INR 25.7 Cr. Gross margins contracted sharply by 745 bps in Q4 (to 70.7%) and 597 bps for FY26 (to 65.3%) due to higher blended grape costs and a one-off gain in Q4 FY25 base. Elite & Premium portfolio now comprises 79% of own brands revenue, up 400 bps YoY, led by The Source and RASA. Wine Tourism delivered strong 17.5% YoY growth with INR 23.9 Cr Q4 revenue, crossing INR 100 Cr for the full year. Management noted strategic cost actions are underway to improve positioning for FY27.
The mixed Q4 results show revenue recovery but significant margin erosion due to input cost pressures. While the premiumization strategy is working and wine tourism remains a growth driver, the sharp PAT decline (-34% in Q4, -63% in FY26) may concern near-term investors. However, improving market conditions and management's cost optimization focus suggest potential for margin recovery.