Sula Vineyards shares drop 2% after firm's Q1 revenue falls 8%; wine tourism surges 22%

The shares of Sula Vineyards dropped 2 percent in early trade on July 14 after the company's provisional Q1 business update failed to meet expectations. The shares of the company were trading at Rs 293 apiece.

Sula Vineyards reported revenue from operations at Rs 118.3 crore for the April-June quarter of ongoing financial year 2026. This marked a fall of 7.9 percent on-year from the Rs 128.4 crore revenue from operations reported in the corresponding quarter of the previous financial year. Notably, the higher revenue in Q1 FY25 was fuelled by a one-time WIPS unwinding benefit of Rs 10.4 crore. Without the one-time gain, the firm's revenue would have marked a marginal rise of 0.2 percent on-year.

Revenue from own brands falls 11%

The revenue generated from its own brands dipped nearly 11 percent on-year to Rs 102.3 crore in Q1 FY26 from Rs 114.6 crore in Q1 FY25. "Own Brands revenue remained subdued due to the continued slowdown in urban consumption. Additionally, the increase in excise duties on spirits in Maharashtra, effective 25th June, prompted heavy pre-loading of spirits by the trade aiming to capitalize on pre-revision prices, thereby temporarily blocking the trade placement for wine. Notably, the excise duties on wine remain unchanged, which bodes well for the industry going forward. The share of Elite & Premium improved in Q1 FY26 led by strong double-digit growth in The Source and RĀSĀ," the firm said.

Wine tourism revenue jumps 22%

While the overall revenue from operations dropped, the firm's revenue from wine tourism significantly surge. Sula Vineyards reported a 21.8 percent rise in revenue generated from wine tourism to Rs 13.7 crore in Q1 FY26. It had earlier reported a revenue of Rs 11.3 crore for the segment in Q1 FY25.

"Wine Tourism continued to demonstrate strong momentum, reporting its highest ever Q1 revenue, propelled by an increase in footfalls, record Q1 resort occupancy and spends per guest. In a further boost, Sula just got closer with the operationalization of the Samruddhi Highway in June ’25, reducing travel time from Mumbai to Nashik by nearly an hour. Adding to the good news, The Dindori Tasting Room and Bottle Shop at ND Wines are now open and well-positioned to attract wine enthusiasts, given its proximity to the Gujarat border," the company said.

Sula Vineyards announces launch of 'Sula Muscat Blanc'

Sula Vineyards also announced the launch of 'Sula Muscat Blanc', which is said to be India's first low alcohol still Muscat wine with just 7.5 percent ABV. "Part of the bestseller Sula Vineyards range, 'Sula Muscat Blanc' will initially be available in wine shops across Maharashtra, with Karnataka to follow in the coming months," it said.

Sula Vineyards had released these provisional unaudited Q1 numbers in the post market hours of July 11. The shares of the company tumbled nearly 4 percent in the past five days, and nearly 22 percent in the past six months. The stock is down more than 29 percent so far in 2025.

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