Sula Vineyards Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sula Vineyards Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sula Vineyards reported 3% year-on-year revenue growth in Q1 FY27 to Rs 121 crores, driven by a recovery in the Elite & Premium portfolio and continued double-digit growth in Wine Tourism, while the Economy & Popular segment remained under pressure from competitor discounting. Gross profit declined 5% due to a shift in grape procurement mix toward wine grapes and an adverse geographic sales mix, though management said operating cost reductions partly offset the impact on EBITDA. The company completed the acquisition of the former Chandon estate, renamed Domaine RASA, and outlined plans for CSD brand listing expansion and continued Wine Tourism capacity growth.
Numbers mentioned
Net revenue from operations: INR121 crores (Q1 FY27)
p. 6
“net revenue from operations increasing by 3% year-on-year to INR121 crores compared to INR 118 crores in Q1 last year”
Rinku More, page 6 of the filed PDF · View the filing
Wine Tourism revenue: INR15.5 crores (Q1 FY27)
p. 5
“This business continues to be a solid performer with revenue growing 12% Y-o-Y to INR15.5 crores in Q1.”
Rajeev Samant, page 5 of the filed PDF · View the filing
Elite & Premium portfolio growth: 6% (Q1 FY27)
p. 3
“The Elite & Premium portfolio, which is our focus, led the way, growing by 6% in Q1 with its share in Own Brands expanding by 310 basis points to an all-time high of 78%.”
Rajeev Samant, page 3 of the filed PDF · View the filing
Resort occupancy: around 63% (Q1 FY27)
p. 5
“Resort occupancy for the quarter stood at around 63%.”
Rajeev Samant, page 5 of the filed PDF · View the filing
Net debt: INR 319 crores (as of June 2026)
p. 7
“Our net debt at the end of June '26 stood at INR 319 crores against the INR 345 crores as on June '25.”
Rinku More, page 7 of the filed PDF · View the filing
WIPS outstanding receivable: INR 88 crores (as of June 2026)
p. 8
“Our WIPS outstanding receivable stood at INR 88 crores as on June 26 compared to INR 86 crores at the end of March.”
Rinku More, page 8 of the filed PDF · View the filing
Employee benefit expenses change: -6% (Q1 FY27 year-on-year)
p. 7
“Employee benefit expenses reduced by 6% year-on-year, supported by organizational optimization initiatives and a lower ESOP cost.”
Rinku More, page 7 of the filed PDF · View the filing
Operating expenses change: -3% (Q1 FY27 year-on-year)
p. 7
“The actions resulted into 3% year-on-year reduction in the operating expenses, helping to partially offset the impact on EBITDA.”
Rinku More, page 7 of the filed PDF · View the filing
Depreciation change: +12% (Q1 FY27 year-on-year)
p. 7
“Depreciation for Q1 increased by 12% year-on-year, primarily reflecting depreciation associated with our new resort, The Haven”
Rinku More, page 7 of the filed PDF · View the filing
Interest cost change: -4% (Q1 FY27 year-on-year)
p. 7
“Interest cost for the quarter declined 4%, driven by lower average debt levels and a lower cost of borrowings.”
Rinku More, page 7 of the filed PDF · View the filing
B2C wine sales from bottle shops: INR 10 crores (Q1 FY27)
p. 6
“For our B2C wine sales from bottle shops at our own Wine Tourism facility grew by 7% to INR 10 crores in Q1.”
Rinku More, page 6 of the filed PDF · View the filing
The Haven occupancy: 43% (Q1 FY27)
p. 7
“as occupancy at our third resort, The Haven scales up from the 43% level seen in Q1, we expect to see improved profitability throughput from this business”
Rinku More, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Higher blended grape cost impact — Q4 FY27, fully normalizing Q1 FY28
stated firmly by Rajeev Samant
p. 6
“the higher blended grape cost is expected to subside in Q4 FY27 and fully normalize from Q1 FY28 onwards, so the full impact will be felt in FY28 as the grape mix rebalances following harvest '27”
Rajeev Samant, page 6 of the filed PDF · View the filing
EBITDA margin recovery — last year's EBITDA margin levels · before end of FY27
stated firmly by Rajeev Samant
p. 6
“We remain confident of achieving this before the end of FY27.”
Rajeev Samant, page 6 of the filed PDF · View the filing
CSD brand listings — 14 approved wines from current 9 · Q3 FY27 listing completion, launch before end of FY27
stated conditionally by Rajeev Samant
p. 4
“we really hope to complete the listing process by Q3 FY27 and introduce the new wines in CSD before the end of this financial year”
Rajeev Samant, page 4 of the filed PDF · View the filing
CSD revenue contribution — significantly more than 4% · FY27
stated as an aspiration by Rajeev Samant
p. 5
“CSD contributed around 4% of our revenues in FY26, and we expect it to contribute significantly more in FY27.”
Rajeev Samant, page 5 of the filed PDF · View the filing
Net debt levels — by end of FY27 compared to FY26
stated conditionally by Rinku More
p. 7
“we expect the net debt levels to continue trending lower by the end of FY27 compared to FY26”
Rinku More, page 7 of the filed PDF · View the filing
Events pavilion construction — 5,000 square foot events pavilion at Nashik campus · Q3
stated firmly by Rajeev Samant
p. 5
“the construction of our new 5,000 square foot events pavilion at our Nashik campus is on track for completion in Q3, in time for the all-important festive and wedding season”
Rajeev Samant, page 5 of the filed PDF · View the filing
Domaine RASA winery operations — Q4, harvest 2027 season
stated firmly by Rajeev Samant
p. 5
“winery operations at the estate are set to commence in Q4 during the 2027 harvest season”
Rajeev Samant, page 5 of the filed PDF · View the filing
Karnataka market turnaround — second half of FY27
stated conditionally by Rajeev Samant
p. 4
“we do expect the market to turn the corner in the second half of FY27”
Rajeev Samant, page 4 of the filed PDF · View the filing
Table grape prices — less than INR 20 a kilo · this time (harvest 2027)
stated conditionally by Rajeev Samant
p. 9
“we do expect that those grape prices would moderate to less than INR 20 a kilo this time”
Rajeev Samant, page 9 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Rajeev Samant said he could not guarantee competitor behavior but noted production volumes among some players have been declining as they realized the business was unsustainable, and expects table grape prices to be much lower than the harvest '26 spike.
Answered by Rajeev Samant
Asked by Abneesh Roy: Whether competitors will behave rationally as raw material costs soften, given Sula's high market share in the mass segment.
p. 8
“it does look quite sure that the table grape prices are going to be at much lower levels than what we saw in harvest '26 when there was a huge spike, more than doubling of table grape prices compared to previous harvests”
Rajeev Samant, page 8 of the filed PDF · View the filing
Rajeev Samant said the wine industry saw low single-digit growth after a post-COVID spurt and that Sula has no current white spirit plans but is looking at other new segments.
Answered by Rajeev Samant
Asked by Abneesh Roy: Whether the wine industry has been flat for several years and if Sula has plans to diversify into other alco-bev segments like white spirits.
p. 9
“We don't have any white spirit plans right now. However, we always have some plans or the other in the pipeline, and we hope to give more color to some very interesting new segment that we're looking at in the near future.”
Rajeev Samant, page 9 of the filed PDF · View the filing
Rajeev Samant confirmed gross margin would have been better without the shift, and Mandar Kapse added it's too early to quantify future upside but the negative impact will end by Q4 FY27.
Answered by Rajeev Samant
Asked by Aditya: Whether gross margin would have been better if the grape mix had not shifted toward wine grapes.
p. 9
“We would not have had the kind of increase in raw material costs that we have seen. That's for sure. So yes, we would have seen a better gross margin.”
Rajeev Samant, page 9 of the filed PDF · View the filing
Rajeev Samant said the Maharashtra-made liquor policy is targeted at spirits and does not affect wine duty, and Karnataka's excise regime for wine is unchanged, though beer price drops hurt wine sales during a hot summer.
Answered by Rajeev Samant
Asked by Nikhil: Whether new excise policies benefiting other alco-bev players in Maharashtra and Karnataka also benefit Sula's wine business.
p. 10
“There is no change in terms of wine duty, not a single rupee. This policy in Maharashtra is very much targeted at spirits.”
Rajeev Samant, page 10 of the filed PDF · View the filing
Rajeev Samant said the entire wine category in Karnataka has degrown, though Sula has maintained or improved market share in Elite & Premium while losing share in Popular & Economy.
Answered by Rajeev Samant
Asked by Nikhil: Why Karnataka continues to be weak despite prior destocking efforts.
p. 10
“the entire wine industry having seen degrowth in Q1 in Karnataka as well as in second half of FY26, we have seen degrowth”
Rajeev Samant, page 10 of the filed PDF · View the filing
Mandar Kapse said Wine Tourism is not tracked as a separate segment but has better EBITDA margin and return ratios than the standalone wine business; Rajeev Samant added the strategy has been asset-light with resorts built by partners under management contracts.
Answered by Mandar Kapse
Asked by Ayush: What capital is employed in the Wine Tourism business and typical capex per room for a new resort.
p. 11
“the Wine Tourism business has a better profitability, a better EBITDA margin versus the stand-alone Wine business”
Mandar Kapse, page 11 of the filed PDF · View the filing
Rajeev Samant explained there is strong seasonality with Q3 contributing close to 40% of revenue, Q4 second, and Q1 the lowest.
Answered by Rajeev Samant
Asked by Sujeev: Why Q4 and Q1 revenues are consistently lower than other quarters historically.
p. 12
“in our case, Q3 gets closer to 40%. So that's the way it is. So Q3 is generally our number one quarter. Q4 is normally second in terms of revenue. And then Q1 is usually quite far behind.”
Rajeev Samant, page 12 of the filed PDF · View the filing
Rinku More clarified Sula has not taken over any spirits brand and remains entirely in the wine business.
Answered by Rinku More
Asked by Sujeev: Whether Sula has taken over any spirits business.
p. 12
“we have not taken over any spirits brand in the last FY. We are completely into wine business.”
Rinku More, page 12 of the filed PDF · View the filing
Rajeev Samant said it will be both a production facility from Harvest 2027 and a wine tourism destination already welcoming visitors.
Answered by Rajeev Samant
Asked by Sujeev: Whether the newly acquired Domaine RASA facility will also serve as a Wine Tourism destination.
p. 12
“It's a beautiful production facility, and we will be, as I mentioned, starting wine production there from this upcoming harvest that is Harvest 2027. And it is also a beautiful facility for wine tourism.”
Rajeev Samant, page 12 of the filed PDF · View the filing
Risks flagged
Continued unsustainable discounting by competitors pressuring the Economy & Popular portfolio
p. 4
“This segment continued to face pressure during this quarter, owing to continued unsustainable discounts by competitors in the market.”
Rajeev Samant, page 4 of the filed PDF · View the filing
Weak performance in the Karnataka market
p. 4
“Karnataka has continued to remain soft, which is unfortunate because it is a very important market for us”
Rajeev Samant, page 4 of the filed PDF · View the filing
Higher grape procurement costs from shift toward wine grapes impacting gross margin
p. 7
“This shift in procurement mix impacted gross margin by approximately 150 basis points.”
Rinku More, page 7 of the filed PDF · View the filing
Adverse geographic sales mix reducing gross margin
p. 7
“this adverse market mix reduced our gross margin by approximately 200 basis points”
Rinku More, page 7 of the filed PDF · View the filing
Entire wine category degrowth in Karnataka
p. 10
“the entire wine category, unfortunately, has degrown in this all-important market”
Rajeev Samant, page 10 of the filed PDF · View the filing
Difficulty obtaining permissions for building a resort in Karnataka
p. 13
“We have struggled a little bit with getting the permissions for building out a resort there.”
Rajeev Samant, page 13 of the filed PDF · View the filing
Hot summer and delayed monsoon shifting consumer preference toward beer
p. 10
“a very hot June has been probably very beneficial for beer producers, not that great for other alco-bev and including wine in Karnataka as well as in Maharashtra”
Rajeev Samant, page 10 of the filed PDF · View the filing
Risk of overly strict authority conditions during Kumbh Mela deterring visitors, as happened previously
p. 13
“a lot of people just decided not to enter Nashik”
Rajeev Samant, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.