Has Sula Vineyards' Revenue Declined by 7.9% in Q1?
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Synopsis
Sula Vineyards Limited has experienced a notable 7.9% decline in its consolidated revenue for Q1 FY26, with earnings falling to Rs 118.3 crore. The decrease is attributed to a drop in urban consumption and changes in excise duties, but the company's wine tourism segment shows promise with a 21.8% revenue increase.
Key Takeaways
- Sula Vineyards reported a 7.9% revenue decline in Q1 FY26.
- Revenue from own-brand wines dropped by 10.8%.
- Wine tourism revenue increased by 21.8%, indicating resilience.
- Changes in excise duties impacted earnings negatively.
- Sula continues to innovate with the launch of Sula Muscat Blanc.
Mumbai, July 13 (NationPress) Sula Vineyards Limited has disclosed a 7.9% decrease in its consolidated net revenue for the quarter ending June 2025 (Q1 FY26), with earnings dropping to Rs 118.3 crore from Rs 128.4 crore during the same period last year (Q1 FY25).
The company has identified a 10.8% decline in revenue from its own-brand wines as the primary factor behind this downturn, with revenues recorded at Rs 102.3 crore.
This downturn is mainly attributed to a persistent slowdown in urban consumption and the ongoing impact of trade pre-loading in Maharashtra, resulting from modifications in excise duties.
Additionally, the previous year's figures included a one-time gain of Rs 10.4 crore from the unwinding of the WIPS (Wine Inventory Purchase Scheme). Without this, this year's revenue remains nearly constant on a year-on-year (YoY) basis.
Despite the overall revenue dip, Sula’s wine tourism division provided some positive news, achieving a 21.8% revenue increase to Rs 13.7 crore.
The company attributes this growth to increased visitor numbers, record occupancy rates at its resorts, and heightened guest spending.
The newly opened Samruddhi Highway, which has reduced travel time between Mumbai and Nashik, has also played a role in boosting tourism.
Sula's premium wine brands, such as The Source and RASA, continue to thrive. The company launched 'Sula Muscat Blanc' during the quarter, marking India’s first low-alcohol Muscat wine with an ABV of 7.5%.
Sula Vineyards' shares concluded Friday’s trading session at Rs 299.40, reflecting a decrease of Rs 1.95 or 0.65% on the National Stock Exchange (NSE).
In the past five days, the shares have declined by Rs 6.50 or 2.12%. Over the course of a month, shares recorded a negative return of Rs 6.55 or 2.14%.
However, the decline in share prices has been more pronounced over extended periods. In the last six months, the stock has decreased by Rs 77.25 or 20.51%.
Year-to-date (YTD), shares have fallen by Rs 115.50 or 27.84%. In the past year, the stock has plummeted by Rs 199.30 or 39.96%.
Point of View
I observe that Sula Vineyards' recent revenue drop reflects broader market trends affecting urban consumption. However, the growth in their wine tourism sector suggests resilience and an ability to adapt. This dual narrative highlights the importance of diversifying revenue streams in challenging times.
NationPress
13/07/2025
Frequently Asked Questions
What caused Sula Vineyards' revenue decline?
The 7.9% revenue decline was primarily due to a 10.8% drop in revenue from their own-brand wines, attributed to a slowdown in urban consumption and changes in excise duties.
How did Sula's wine tourism segment perform?
Sula's wine tourism segment saw a remarkable 21.8% increase in revenue to Rs 13.7 crore, driven by higher visitor numbers and increased guest spending.
What are the recent stock trends for Sula Vineyards?
Sula's stock has seen a significant drop, down by 39.96% over the past year, with a notable decrease of 20.51% in the last six months.
What is the significance of the Samruddhi Highway for Sula?
The recently opened Samruddhi Highway has reduced travel time between Mumbai and Nashik, contributing positively to Sula's wine tourism growth.
What new products did Sula launch recently?
Sula launched 'Sula Muscat Blanc', India's first low-alcohol Muscat wine with an ABV of 7.5% during the quarter.
