Wine producer Sula Vineyards Ltd on Thursday (November 5) reported a 35% year-on-year increase in net profit to ₹8 crore for the second quarter of FY27, compared with ₹6 crore in the corresponding period last year.
Revenue rose 3.5% to ₹135.5 crore from ₹130.9 crore. The earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 8.1% to ₹27.5 crore from ₹25.5 crore, supported by improved traction in Elite and Premium sales and cost optimisation measures. These measures helped the company reduce operating expenses by 4% during the quarter.
The EBITDA margin expanded to 20.3% in Q2 FY27 from 19.5% a year earlier.
The company’s board has approved diversification into the development, manufacture, marketing and sale of de-alcoholised wine derived from wine produced by Sula Vineyards.
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The proposed business will use the company’s existing infrastructure, operational expertise, distribution network and brand presence to expand its product portfolio and explore new business opportunities. The diversification is subject to applicable laws and regulatory approvals, wherever required.
The board has also approved capacity addition through the construction of a hotel at York Winery in Gangavarhe village, Nashik, Maharashtra. The project will be undertaken by Artisan Spirits Private Limited (ASPL), a wholly owned subsidiary of Sula Vineyards, subject to necessary approvals from the concerned authorities.
Sula Vineyards’ net revenue from operations grew 4% year-on-year in Q2 FY27, supported by better traction in its own brands and double-digit growth in wine tourism. Wine tourism revenue rose 24% to ₹16.3 crore during the quarter, led by higher room revenue following the launch of The Haven and an increase in spending per guest.
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Sales of Elite and Premium wines grew 9% year-on-year, driven by strong double-digit growth in The Source, Sula Sparkling Wines and Sula Merlot. The Elite and Premium category’s share increased by 420 basis points year-on-year to 82%.
Rajeev Samant, Chief Executive Officer (CEO) and founder of Sula Vineyards, said, “I am pleased to report a solid all-round performance in Q2 FY27, with Net Revenue growing 4% YoY and Net Profit rising 34% YoY. We also strengthened our balance sheet by reducing Net Debt significantly by ₹ 49 crore YoY to ₹ 306 Cr as of September 26.
Own Brands performance was supported by healthy momentum in the Elite & Premium portfolio, which grew 9% YoY and reached a record 82% share of Own Brands sales in Q2 FY27. Regionally, Telangana was a standout market, delivering 45% YoY growth, while Goa, Rajasthan, West Bengal and Exports, among other markets, also recorded robust gains.
Wine Tourism continues to be a bright spot, delivering strong double-digit growth in Q2, supported by higher room revenue following the launch of our third resort, The Haven. I am delighted to share that our new Event Pavilion – The Vintage Room at our flagship Nashik Estate is now open and has already hosted its first event. This addition further enhances our destination offerings and will contribute to further wine tourism revenue growth.
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In another exciting development, we will shortly commence construction of our fourth hotel, a 35-Key property, strategically located alongside The Haven and a stone’s throw from our flagship Nashik campus. This project is enabled by the relocation of operations from our existing York winery to Domaine Rasa (erstwhile Chandon estate). The new hotel will expand our room capacity by ~20% to 185 rooms, with operations targeted to commence by Q4 FY28.
On the product innovation front, I am excited about our upcoming product launches. We have a strong pipeline in the wine-based ready-to-drink (RTD) segment. So, stay tuned, and we will announce more details shortly.
Looking ahead, we remain focused on sustaining growth in our premium portfolio, further expanding our wine tourism footprint and driving operational efficiencies. With a sharp focus on profitable growth, we hope to build on this momentum and close FY27 on a strong note.”
Shares of Sula Vineyards Ltd ended at ₹137.20, up by ₹2.00, or 1.48%, on the BSE.
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