Wine producer Sula Vineyards Ltd 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. According to reports from CNBC TV18, revenue rose 3.5% to ₹135.5 crore from ₹130.9 crore, while the earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 8.1% to ₹27.5 crore from ₹25.5 crore. The EBITDA margin expanded to 20.3% in Q2 FY27 from 19.5% a year earlier, supported by improved traction in Elite and Premium sales and cost optimisation measures that helped reduce operating expenses by 4% during the quarter.
The company's premium wine strategy delivered strong results with sales of Elite and Premium wines growing 9% year-on-year, driven by strong double-digit growth in The Source, Sula Sparkling Wines and Sula Merlot. As reported by CNBC TV18, the Elite and Premium category's share increased by 420 basis points year-on-year to 82% of Own Brands sales in Q2 FY27. CEO and founder Rajeev Samant highlighted that "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." The company's net revenue from operations grew 4% year-on-year, supported by better traction in its own brands and double-digit growth in wine tourism. Regionally, Telangana was a standout market, delivering 45% year-on-year growth, while Goa, Rajasthan, West Bengal and Exports recorded robust gains.
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. According to CNBC TV18, the company's new Event Pavilion – The Vintage Room at its flagship Nashik Estate is now open and has already hosted its first event, further enhancing destination offerings. In another significant development, the board has approved capacity addition through construction of a 45-key hotel at York Winery in Gangavarhe village, Nashik, which will be undertaken by Artisan Spirits Private Limited (ASPL), a wholly owned subsidiary of Sula Vineyards. The new hotel will expand room capacity by approximately 20% to 185 rooms, with operations targeted to commence by Q4 FY28. Samant noted that "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."
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. As reported by CNBC TV18, 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. Samant emphasized that "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 segment." The company strengthened its balance sheet by reducing net debt significantly by ₹49 crore year-on-year to ₹306 crore as of September 26. Shares of Sula Vineyards Ltd ended at ₹137.20, up by ₹2.00, or 1.48% on the BSE.
