Sula Vineyards Reports FY26 Financials: Revenue Down, PAT Plummets

Sula Vineyards saw consolidated revenue of ₹596.19 crore and consolidated profit after tax of ₹25.65 crore for the fiscal year 2025-26.

Reader Takeaway: Revenue and profit declined year-on-year, but Q4 showed recovery signs with wine tourism growing strongly.

What just happened

Sula Vineyards announced its financial results for the fiscal year ending March 2026. Consolidated revenue from operations stood at ₹596.19 crore, a decrease of 3.7% from ₹619.38 crore in the previous fiscal year (FY25). Consolidated profit after tax (PAT) saw a significant drop of 63.5%, falling to ₹25.65 crore from ₹70.20 crore in FY25.

The company attributed the revenue decline to weakness in its 'Own Brands' segment, citing demand softness and transient regional disruptions. Operating EBITDA also fell by 29.6% to ₹107.77 crore from ₹153.00 crore.

However, the company noted a positive trend in the fourth quarter (Q4 FY26), where sales for 'Own Brands' grew by 7% year-on-year, indicating a potential recovery.

Why this matters

The results indicate a challenging year for Sula Vineyards, impacted by macroeconomic factors affecting consumer demand. The sharp fall in profitability, more pronounced than the revenue decline, points to operating deleverage. However, the noted recovery in Q4 and strong performance in the wine tourism segment offer some positive signals for future performance.

The backstory

FY26 represented a transitional year for Sula Vineyards. The company faced headwinds common to the broader wine industry, including softened demand and localized challenges. Despite these pressures, Sula continued to invest in its wine tourism business, a segment that has consistently shown robust growth.

What changes now

Sula Vineyards has recommended a final dividend of ₹2 per equity share for FY26, subject to shareholder approval. The company's focus for FY27 will be on sustaining the recovery witnessed in Q4 and implementing cost rationalization measures to improve margins. Investors will be watching the company's ability to regain momentum in its core 'Own Brands' segment and expand its hospitality offerings.

Risks to watch

Key concerns include the ongoing demand softness in premium wine segments and the impact of regional disruptions. The company must navigate these challenges to reverse the declining revenue and profitability trends. Margin contraction due to operating deleverage is another area requiring close monitoring.

Peer comparison

(No peer comparison data provided in the filing.)

Context metrics (time-bound)

• Consolidated Revenue: ₹596.19 crore (FY26) vs ₹619.38 crore (FY25)
• Consolidated PAT: ₹25.65 crore (FY26) vs ₹70.20 crore (FY25)
• Consolidated Operating EBITDA: ₹107.77 crore (FY26) vs ₹153.00 crore (FY25)
• Wine Tourism Revenue: ₹72.8 crore (FY26), a 20.7% YoY growth
• Net Debt: ₹280 crore (as of March 2026)
• Dividend: ₹2 per equity share recommended for FY26

What to track next

Investors should track the sequential improvement in 'Own Brands' sales, the continued growth of the wine tourism segment, and management's success in controlling costs and improving operating margins in FY27.