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Earnings Call Transcript

Sula Vineyards Earnings Call Transcript: Key Takeaways

Sula reported Q1FY27 revenue growth of 3% YoY to ₹121 Cr, driven by 6% growth in Elite & Premium brands and 12% growth in Wine Tourism, despite margin pressure from grape costs.

Highlights
Revenue growth3% YoY
MarginsTemporary 150 bps contraction due to grape mix; normalization expected FY28.
Demand visibilityStrong momentum in Telangana; recovery expected in Karnataka by H2FY27.
Management confidenceHigh; six consecutive months of positive growth.

Growth

Revenue grew 3% to ₹121 Cr. Elite & Premium share hit record 78%. Wine Tourism revenue rose 12% to ₹15.5 Cr.

Outlook

EBITDA margins expected to recover by year-end. Acquisition of 'Domain RASA' completed for ₹20 Cr. Expansion in CSD planned.

Risks

Higher blended grape costs impacted margins by 150 bps. Competition discounts pressured the Economy & Popular segment.

Last quarter's promises, checked

Delivered

  • Targeted 100+ Cr Wine Tourism revenue → delivered 110 Cr (= BEAT)
  • Expand CSD listings from 9 to 14 → delivered 5 preliminary approvals (= BEAT)
  • Open Bangalore tasting room in Q4 → delivered operational facility (= BEAT)

Partly delivered

  • Targeted Karnataka recovery → delivered 'looking much better' but Q1FY27 data shows H2FY27 target (= PARTIAL)
  • Expand room capacity to 154 keys → delivered 154 keys but occupancy at 70% vs 80% core (= PARTIAL)
Source

Earnings Call Transcript filed with BSE, NSE: SULA. Summary written with AI assistance from the document.

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Sula Vineyards Ltd: key numbers

Share price
₹135.13
Market cap
₹1,141 Cr
Revenue (annual)
₹555.9 Cr
Net profit (annual)
₹25.65 Cr
P/E (TTM)
46.1×Sector 29.0×
Promoter holding
24.62%+0.07% QoQ
FII holding
0.68%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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