Sula’s Vintage Quarter: Revenue Down 1.1% Yet Wine Tourism Hits a Record Peak

Sula Vineyards Ltd, the largest wine producer in India, announced its Q2 FY26 financial results with revenue from operations slightly down by 1.1% year-on-year to ₹139.7 crore. The modest decline was primarily attributed to market disruptions in Telangana, the company’s third-largest market, where retail license expirations led to inventory destocking ahead of new issuances. Despite these challenges, Sula’s core Own Brands revenue showed resilience with a smaller 2.5% dip to ₹124.1 crore, and excluding Telangana, the segment showed low single-digit growth.

 

The company maintained a dominant 78% share of elite and premium wines in its portfolio, supported by the successful launch of Sula Muscat Blanc, a low-alcohol premium wine that has been well received in the market. This launch is part of Sula’s ongoing premiumisation strategy aimed at capturing discerning consumers seeking quality and innovation.

 

A standout performer this quarter was Sula’s wine tourism business, which surged by 7.7% to ₹13.2 crore, marking its highest ever Q2 revenue. Improved footfall, higher occupancy rates at 77% compared to 74% last year, and increased spend per guest contributed strongly to this growth. The newly opened third resort, The Haven by Sula in Nashik, with its luxurious accommodations and scenic lake views, also played a vital role in attracting visitors and enhancing the brand experience.

 

Looking ahead, favorable rainfall across grape-growing belts in Maharashtra and Karnataka bodes well for the upcoming harvest, supporting optimism for sustained growth. The company remains confident about expanding its premium wine segment and further developing its tourism offerings to diversify revenue streams.

 

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Source: Sula Vineyards Ltd official investor relations, Scanx Trade, CNBC TV18, Market Screener.