Sula Vineyards Limited has informed the Exchange about Transcript

Sula reported its toughest quarter since listing, with Q3 revenue and profit hit by a tactical one-time destocking in Karnataka worth roughly INR 21 crores. Excluding this, Q3 revenue was largely flat year-on-year, while Wine Tourism surged 34% on a 17% jump in footfalls and the early ramp-up of its new 50-key resort 'The Haven.' Premium wines held an 80% portfolio share, with The Source range up 23% in 9M FY26 to INR 40 crores and now 11% of Own Brands. Management framed the India-EU FTA as broadly favourable, since over 95% of Sula's portfolio sits below the expected INR 1,700 MRP of duty-cut European wines, and said the revenue and margin impact has 'bottomed out' in Q3 with improvement expected from Q4 onwards. Q3 EBITDA fell 40% YoY to INR 32 crores on an 800 bps margin contraction, 9M EBITDA was down 30% to INR 76 crores, but net debt declined INR 36 crores sequentially to INR 319 crores and capex is guided lower to INR 20-25 crores annually.