Sula Vineyards Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sula Vineyards Ltd filed with BSE on 13 May 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 Q4 FY26 revenue growth of 7% year-on-year to Rs 142 crore, driven by a recovery in Own Brands and continued strength in Wine Tourism, which crossed Rs 100 crore in annual revenue for the first time. Full year FY26 revenue declined 2% year-on-year excluding a one-time gain in the prior year, with Own Brands contracting 5% due to disruptions in Karnataka and Telangana during the first nine months. Management said EBITDA in Q4 was slightly lower year-on-year due to higher blended grape costs and a prior-year one-off gain, while cost reduction measures helped keep absolute EBITDA largely intact.
Numbers mentioned
Revenue: Rs 142 crores (Q4 FY26)
p. 8
“Q4 marked a meaningful improvement in our business momentum with revenue growing 7% Y-o-Y to INR 142 crores compared to INR 133 crores in Q4 last year.”
Abhishek Kapoor, page 8 of the filed PDF · View the filing
Revenue: Rs 596 crores (FY26)
p. 8
“For the full year FY '26, though, revenue declined 2% Y-o-Y to INR 596 crores, excluding a INR 10 crore one-time WIPS unwinding gain recorded in last financial year.”
Abhishek Kapoor, page 8 of the filed PDF · View the filing
Wine Tourism revenue growth: 20% (FY26)
p. 8
“In contrast, Wine Tourism delivered another strong year with revenue growing 20% Y-o-Y.”
Abhishek Kapoor, page 8 of the filed PDF · View the filing
The Source sales growth: over 35% (Q4 FY26)
p. 4
“The Source sales grew by over 35% in Q4 and over 20% for the full year FY '26”
Rajeev Samant, page 4 of the filed PDF · View the filing
CSD sales growth: 21% (FY26)
p. 4
“In FY '26, CSD sales have grown 21%.”
Rajeev Samant, page 4 of the filed PDF · View the filing
UP growth: more than 50% for FY26, nearly 100% for Q4 (FY26 and Q4 FY26)
p. 5
“the standout market this year in terms of growth was UP, delivering more than 50% growth in FY '26 and nearly 100% growth in Q4.”
Rajeev Samant, page 5 of the filed PDF · View the filing
Wine Tourism revenue growth: 17% (Q4 FY26)
p. 5
“We delivered a robust 17% Y-o-Y revenue growth in Wine Tourism in Q4, driven by 11% increase in footfalls”
Rajeev Samant, page 5 of the filed PDF · View the filing
Room capacity: 154 keys
p. 5
“our room capacity has now expanded by 50% to 154 keys”
Rajeev Samant, page 5 of the filed PDF · View the filing
Occupancy: over 70% (Q4 FY26)
p. 5
“our occupancy levels continue to remain very healthy at over 70% in Q4.”
Rajeev Samant, page 5 of the filed PDF · View the filing
Renewable energy share: 75% (FY26)
p. 7
“the share of renewable energy in our total energy mix has gone up to 75% in FY '26”
Rajeev Samant, page 7 of the filed PDF · View the filing
Capex: approximately INR 25 crores (FY26)
p. 9
“capex for FY '26 stood at approximately INR 25 crores.”
Abhishek Kapoor, page 9 of the filed PDF · View the filing
Net debt: close to INR 280 crores (FY26 end)
p. 9
“Net debt at the end of FY '26 stood at close to INR 280 crores, slightly lower versus last year, which was at INR 285 crores.”
Abhishek Kapoor, page 9 of the filed PDF · View the filing
Net cash from operations: INR 99 crores (FY26)
p. 9
“Net cash generated from operations increased 70% Y-o-Y to INR 99 crores as compared to INR 58 crores in FY '25”
Abhishek Kapoor, page 9 of the filed PDF · View the filing
WIPS outstanding receivables: INR 86 crores (March 2026)
p. 9
“Our WIPS outstanding receivables stood at INR 86 crores as of March 2026 compared to INR 72 crores last year.”
Abhishek Kapoor, page 9 of the filed PDF · View the filing
Final dividend: INR 2 per share (FY26)
p. 10
“The Board has recommended a final dividend of INR 2 per share, supported by improved operating cash flows and a strong retained earnings position.”
Abhishek Kapoor, page 10 of the filed PDF · View the filing
Elite and premium share of own brands: 79% (Q4 FY26)
p. 12
“the share of elite and premium has again grown in this quarter, even though I had said some time back that's probably as good as it could get, but it has gone up to 79% in Q4 as opposed to 75% in the previous quarter”
Rajeev Samant, page 12 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.
Price hikes in free pricing states — 2% to 3% a year · FY27
stated firmly by Rajeev Samant
p. 10
“In general, we would take something like 2% to 3% a year in the free pricing states.”
Rajeev Samant, page 10 of the filed PDF · View the filing
Renewable energy share — 80% plus
stated as an aspiration by Rajeev Samant
p. 7
“With these new systems, we are targeting to go 80% plus renewable energy”
Rajeev Samant, page 7 of the filed PDF · View the filing
Regular capex — FY27
stated firmly by Abhishek Kapoor
p. 9
“We expect regular capex in FY '27 to remain lower than the FY '26 levels as well, excluding the proposed asset purchase agreement with Chandon”
Abhishek Kapoor, page 9 of the filed PDF · View the filing
EBITDA margin
stated as an aspiration by Rajeev Samant
p. 13
“I think I'm quietly optimistic that we will start to see now improvement in margins going forward.”
Rajeev Samant, page 13 of the filed PDF · View the filing
Operating margin recovery to 30% — 30%
stated conditionally by Rajeev Samant
p. 13
“In terms of margins, I would not guide that we are going to return to 30% anytime soon.”
Rajeev Samant, page 13 of the filed PDF · View the filing
Wine Tourism revenue mix — another 200 or 300 basis points · FY27 over FY26
stated as an aspiration by Rajeev Samant
p. 15
“I would not be surprised if we close this year up another 200 or 300 basis points that is in FY '27 over FY '26.”
Rajeev Samant, page 15 of the filed PDF · View the filing
Wine Tourism capex vs winery capex — 3x · FY27
stated firmly by Rajeev Samant
p. 15
“our capex in terms of Wine Tourism in FY '27 is going to be something like 3x our capex on the winery front”
Rajeev Samant, page 15 of the filed PDF · View the filing
Room key expansion — significantly more than 200 keys · within the next 1.5 years
stated conditionally by Rajeev Samant
p. 15
“where we need to be looking at is, again, crossing significantly more than 200 keys with our next project, which we should hope to deliver within the next 1.5 years if all goes well”
Rajeev Samant, page 15 of the filed PDF · View the filing
CSD listings expansion — 14 listings from 9 · before the end of this year
stated conditionally by Rajeev Samant
p. 4
“We hope to complete the listing process before the end of this year and introduce the new wines in CSD by Q4, which should support the continued CSD sales momentum in the second half of the year.”
Rajeev Samant, page 4 of the filed PDF · View the filing
Production scale-up of four launches — approximately 40% · FY27
stated firmly by Rajeev Samant
p. 4
“we plan to scale up the production of our previous four launches which includes The Source Moscato, Source Pinot Noir those two in The Source and the Sula Muscat Blanc and Sula Merlot being the two Sula Classics launches by approximately 40% in FY '27.”
Rajeev Samant, page 4 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.
Management said inventory levels have come down following a Q3 destocking move, that Sula continues to run lower discounts than competitors, and that price hikes of 2-3% a year will continue in free pricing states.
Answered by Rajeev Samant
Asked by Siddhant Dand: What are channel inventory levels compared to previous years, and what about discounting and price hikes in the market?
p. 10
“at the end of Q4, inventory levels throughout the channels have come down a bit compared to quarters gone by.”
Rajeev Samant, page 10 of the filed PDF · View the filing
Management said RM costs spiked in Q4 due to grape mix and this will persist for a couple of quarters until the next harvest, though cost reduction initiatives will help mitigate the impact at the EBITDA level.
Answered by Abhishek Kapoor
Asked by Shubham Jain: What is the outlook on margins and cost pressures going forward?
p. 12
“This is going to have an impact over the next couple of quarters because the grape harvest, it comes only once a year.”
Abhishek Kapoor, page 12 of the filed PDF · View the filing
Management declined to give specifics on resort plans, saying more would be shared later, and noted elite and premium share had grown to 79% in Q4 but management would not guide further growth.
Answered by Rajeev Samant
Asked by Jitaksh: What are the resort/key launch plans for FY27, and the strategy for growing the elite and premium category share?
p. 12
“We have some exciting plans ahead. I'll just put it like that. And I hope that by the next earnings call we would lay out exactly what that plan is.”
Rajeev Samant, page 12 of the filed PDF · View the filing
Management said it would not guide for a return to 30% margins anytime soon but expressed cautious optimism about year-on-year improvement in margins going forward.
Answered by Rajeev Samant
Asked by Keshav Garg: What is the outlook for FY27 top line and operating margins, and when might 30% operating margins return?
p. 13
“I would not guide that we are going to return to 30% anytime soon.”
Rajeev Samant, page 13 of the filed PDF · View the filing
Management said the receivables situation had improved after Telangana's new excise policy released payments, and that the company remains focused on Wine Tourism rather than new liquor categories for now.
Answered by Abhishek Kapoor
Asked by Keshav Garg: What is the status of receivables from corporation-driven markets, plans for other liquor categories, and the Chandon resort timeline?
p. 14
“we are happy to notify that on the receivable front, we stand in a comfortable position.”
Abhishek Kapoor, page 14 of the filed PDF · View the filing
Management said Wine Tourism is now around 19% of overall revenue and expects it to grow by 200-300 basis points as a share of revenue in FY27 over FY26.
Answered by Rajeev Samant
Asked by Shreya: How does management see the revenue mix between Own Brands and Wine Tourism evolving over the next few years?
p. 15
“Wine Tourism is now close to 20% of our overall revenue if you look at FY '26, somewhere around 19%.”
Rajeev Samant, page 15 of the filed PDF · View the filing
Risks flagged
Higher blended grape costs from increased mix of wine grapes versus table grapes
p. 6
“the higher blended grape cost, and that reflects an increased mix of wine grapes versus table grapes.”
Rajeev Samant, page 6 of the filed PDF · View the filing
Grape mix impact expected to weigh on profitability for the next couple of quarters
p. 8
“the grape mix impact will weigh on profitability over the next couple of quarters, though this will be partially offset by lower inventory carrying costs, ongoing cost reduction measures and the reduced finance costs.”
Abhishek Kapoor, page 8 of the filed PDF · View the filing
Packing material cost increases due to the West Asia conflict
p. 10
“we are going to face some pressure from packing material cost increases because of the West Asia conflict primarily.”
Rajeev Samant, page 10 of the filed PDF · View the filing
Unsustainable discounting practices among industry competitors
p. 10
“the level of discounting is, I would say, unsustainably high for the industry.”
Rajeev Samant, page 10 of the filed PDF · View the filing
Lack of temperature-controlled storage infrastructure at retail level affecting wine quality
p. 15
“your mom-and-pop stores are you can say, they are often reluctant to put in air conditioning.”
Rajeev Samant, page 15 of the filed PDF · View the filing
Prior disruptions in key markets Karnataka and Telangana affecting Own Brands
p. 8
“The decline was largely attributable to a 5% contraction in own brands, reflecting disruptions in key markets, particularly Karnataka and Telangana during the first 9 months of the year.”
Abhishek Kapoor, page 8 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.