Shares of Sula Vineyards Limited were trading marginally lower on Thursday morning, a day after the country’s largest wine producer reported its Q4 and full-year FY26 results, with sell-side pressure dominating early trade amid a mixed financial scorecard.
At 11.27 am on the NSE, SULA was quoted at ₹172.69, down ₹0.98 or 0.56 per cent from its previous close of ₹173.67. The stock opened at ₹172.00, touched a high of ₹174.39 and a low of ₹168.90 during the session. Sell orders accounted for 73.67 per cent of total order quantity against 26.33 per cent on the buy side, reflecting cautious market sentiment. Traded volume stood at 4.72 lakh shares with a traded value of ₹8.10 crore, and total market capitalisation was at ₹1,458.32 crore with a free float market cap of ₹1,102.94 crore.
A year of volatility
The stock has had a punishing run over the past year. It trades 37.63 per cent below its level a year ago and is down nearly 21 per cent year-to-date, significantly underperforming the Nifty 50, which is marginally lower over the same period. The 52-week high of ₹335.90 was recorded in June 2025, while the 52-week low of ₹138.60 was hit as recently as late March 2026. Annualised volatility stands at 41.46 per cent, and the applicable margin rate is 17.39 per cent, reflecting the elevated risk profile the market currently assigns the stock. The symbol P/E of 57.18 suggests investors are pricing in a meaningful earnings recovery, though that remains some distance away.
The results released Wednesday evening showed Q4 FY26 revenue from operations rising 7.1 per cent year-on-year to ₹142.6 crore, marking what the company described as a return to growth after several difficult quarters. This was driven by own brand revenue growing 5.2 per cent to ₹115.3 crore and wine tourism revenue climbing 17.5 per cent to a record ₹23.9 crore for the quarter. The others segment contributed ₹3.2 crore, up 8.8 per cent.
However, the cost picture tells a more sobering story. Cost of goods sold surged 57 per cent year-on-year to ₹34.1 crore in Q4 FY26 from ₹21.7 crore a year earlier, driven by a higher mix of wine grapes versus table grapes and a one-off inventory pricing gain of ₹3 crore that had boosted the Q4 FY25 base. As a result, gross profit fell 3.1 per cent to ₹100.8 crore with gross margins contracting sharply by 745 basis points to 70.7 per cent. Operating EBITDA slipped 2.5 per cent to ₹27.8 crore and EBITDA margins narrowed 192 basis points to 19.5 per cent. Profit after tax for the quarter came in at ₹8.6 crore, down 34 per cent from ₹13 crore in Q4 FY25, with PAT margins at 6 per cent versus 9.7 per cent a year ago. PBT declined 11 per cent to ₹12 crore. Depreciation and amortisation rose 16 per cent to ₹10.1 crore, reflecting the capital invested in expanding the resort portfolio.
For the full year FY26, the numbers reflect a more challenging picture. Revenue from operations declined 3.7 per cent to ₹596.2 crore from ₹619.4 crore in FY25. Own brand revenue fell 6.4 per cent to ₹511.1 crore, while wine tourism revenue was a bright spot, growing 20.7 per cent to ₹72.8 crore — crossing the ₹100 crore mark for the first time when including wine sales at the resorts. Full-year EBITDA fell 30.6 per cent to ₹103.5 crore with margins at 17.4 per cent versus 24.1 per cent in FY25. PAT for FY26 stood at ₹25.7 crore, down sharply from ₹70.2 crore, with PAT margins at 4.3 per cent. It is worth noting that FY25 figures included a one-time WIPS unwinding benefit of ₹10.4 crore; excluding this, the comparable revenue decline for FY26 was 2.1 per cent and EBITDA decline was 25.6 per cent.
Mixed performance
Within own brands, the Elite and Premium portfolio was the standout performer in Q4, growing 10.6 per cent year-on-year to ₹91.6 crore, led by strong double-digit growth in The Source and RASA labels. Its share of the overall own brand mix improved 400 basis points year-on-year to 79 per cent in Q4 FY26 from 75 per cent a year ago. The Economy and Popular segment, however, contracted 11.7 per cent. For the full year, Elite and Premium revenue was ₹400.7 crore, accounting for 78 per cent of the mix, up from 77 per cent in FY25.
On wine tourism, Q4 visitor footfall crossed 1,12,300, up 12 per cent year-on-year, aided by strong festive and wedding demand and improved road connectivity from Mumbai. Average room occupancy was 72 per cent, down 1,500 basis points year-on-year, largely due to the 50 per cent expansion in room capacity following the launch of The Haven, Sula’s third resort in Nashik with 50 keys, in December 2025. Adjusting for The Haven, occupancy was only marginally lower than the prior year. Average room revenue stood at ₹10,554, down 1 per cent year-on-year, while room revenue overall grew 22 per cent year-on-year.
Over a five-year period from FY21 to FY26, the company has delivered revenue, operating EBITDA and PAT CAGRs of 6 per cent, 11 per cent and 52 per cent respectively. Wine tourism revenue has grown at a 32 per cent CAGR over the same period. The company has also signed an agreement to acquire Chandon’s 19-acre wine estate in Dindori, Nashik, to further expand its tourism footprint, with details to be disclosed upon transaction completion. The balance sheet shows a debt-to-EBITDA ratio of under 3x and a return on capital employed of 11 per cent for FY26.
Published on May 7, 2026