SULABSESula Vineyards LtdLowNeutral
Announced Wed, 13 May · 15:14 IST

as attached

Promoter Disclosed Acquisition PlansMgmt Guided Margin ImprovementInvestor Communications View source PDF

SULA · price

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Price reaction · full curve 14 horizons · vs prior close
-1.8%1-day move
₹166.05
prior close
₹164.71
base price
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AI summary

Sula Vineyards returned to growth in Q4 FY26 with revenue up 7% YoY to ₹142 crore, driven by 5% growth in Own Brands and 17% growth in Wine Tourism. The elite and premium portfolio led with double-digit growth, with The Source brand growing 35% in Q4. Wine Tourism crossed the ₹100 crore revenue milestone for the first time, now comprising ~19% of total revenue. The company signed a binding agreement to acquire Chandon's 19-acre estate in Dindori, Nashik for Wine Tourism expansion. EBITDA remained largely flat due to higher wine grape costs (grape mix shift to ~100% wine grapes vs ~80% last year) and absence of the ₹3 crore one-time gain from Q4 FY25. Net debt reduced marginally to ₹280 crore from ₹285 crore. Management guided that grape cost pressure will persist for 1-2 more quarters but expressed quiet optimism on margin improvement going forward, helped by cost reduction measures and growing Wine Tourism contribution.

Likely market impact

Q4 marked a positive turnaround with 4 straight months of growth, easing concerns about demand recovery. Wine Tourism emerging as a strong growth engine (~20% of revenue) and the upcoming Chandon acquisition signal strategic focus on higher-margin hospitality. Margin pressure from grape costs is temporary but limits near-term profitability gains.