Sula Vineyards Limited has informed the Exchange about Transcript
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Sula Vineyards filed the transcript of its Q1 FY26 earnings call held on August 8, 2025. Q1 revenue stood at INR 118 crores, broadly flat YoY after adjusting for a INR 10.4 crore one-time WIPS unwinding gain in the base quarter. Own-brand sales faced headwinds from soft urban demand and a temporary disruption in Maharashtra caused by an excise duty hike on spirits, which led distributors to front-load spirit purchases. Wine tourism was a bright spot, growing over 20% YoY with resort occupancy rising to 82% (from 70%), spend per guest up 6%, and D2C bottle shop sales up 11% to INR 9 crores. The Elite and premium portfolio mix improved to 75% of own-brand revenue (from 71%), with 'The Source' delivering double-digit growth and contributing nearly 10% of own-brand revenue. Gross margin compressed ~450 bps due to a change in wine sourcing model for the tourism vertical; adjusted gross margin remains around 80%, expected to normalize from Q3. The CFO guided for an improvement of a couple of hundred basis points in operating margins in H2 FY26, driven by full WIPS accrual benefit, new tourism openings, and manufacturing cost efficiencies.
Near-term sales were soft due to external and one-off factors, but the company's margin recovery guidance for H2 FY26 and continued strength in wine tourism could support an earnings rebound. The CEO declined to provide specific guidance on return to double-digit revenue growth, which may keep near-term visibility limited for investors.