Sula Vineyards Ltd. convened a board meeting on August 6, 2026, to approve its Q1 FY27 unaudited financial results ahead of its scheduled analyst conference call on August 7, 2026. The company reported a sharp decline in first-quarter profit as margin pressure offset modest revenue growth during the April-June quarter. According to reports from CNBC TV18, the company's consolidated net profit fell 45.4% year-on-year to ₹1.06 crore from ₹1.94 crore a year earlier, highlighting significant operational challenges during the quarter. The profit decline was primarily attributed to higher blended grape costs, which had a 150 basis point impact as the company saw a higher mix of wine grapes compared with table grapes.
Despite the profit decline, Sula Vineyards managed to achieve revenue growth of 3% to ₹112.88 crore from operations compared to the previous year, as reported by CNBC TV18. This revenue increase was driven by improved traction in its own brands and double-digit growth in wine tourism. The company's wine tourism revenue stood at ₹15.5 crore in Q1 FY27, up 12% year-on-year, led by higher room revenue following the launch of The Haven and increased spending per guest. The company's wine tourism revenue stood at ₹15.5 crore in Q1 FY27, up 12% year-on-year, led by higher room revenue following the launch of The Haven and increased spending per guest.
The company faced significant margin pressure during the quarter, with EBITDA declining 9.3% to ₹16.60 crore from ₹18.30 crore in the prior year, according to CNBC TV18. The EBITDA margin narrowed to 14.7% from 16.7% in the corresponding quarter last year, indicating operational efficiency challenges that impacted profitability despite revenue growth. However, cost actions reduced operating expenses by 3% year-on-year, helping limit the overall impact on EBITDA. The company is currently undergoing structural optimization, having approved the sale of its Mumbai registered office in June 2026 for a sum of not less than ₹27 crore to optimize its capital structure.
The company demonstrated strong performance in its premium segments, with sales from the Elite & Premium portfolio growing 6% year-on-year during the quarter, as reported by CNBC TV18. This growth was supported by strong double-digit growth in The Source, RASA and Sula Merlot. The Elite & Premium portfolio's share increased by 310 basis points year-on-year to 78%, indicating successful strategic focus on higher-margin products. The company's dominant market share of over 60% in India's expanding wine market continues to support its long-term strategic viability, despite ongoing challenges from regulatory headwinds and grape procurement cost volatility.
A significant corporate restructuring took place in July 2026, with Chief Financial Officer Abhishek Kapoor resigning effective July 14, 2026, and Rinku More appointed as CFO Designate effective July 15, 2026. The company also approved the sale of its Mumbai registered office premises in June 2026 for a consideration of not less than ₹27 crore to optimize its capital structure. The corporate registered office transition from owned premises in Mumbai to a new facility starting July 1, 2026, marks a crucial juncture for the company. While the reported decline in net profit to ₹1.1 crore for Q1 FY27 remains subject to independent verification, the company's strong brand equity and dominant market position continue to support its long-term strategic viability.
