EBITDA dropped 46.1% to Rs 18.3 crore in Q1 June 2025 from 33.9crore in Q1 June 2024. EBITDA margin contracted 1,096 bps to 15.5% in Q1 FY26 as against 26.4% in Q1 FY24.

Revenue from own brands declined 10.8% YoY to Rs 102.3 crore, while revenue from wine tourism jumped 22% YoY to Rs 13.7 crore in Q1 FY26 over Q1 FY25.

Share of Elite & Premium brands increased to 74.7% in Q1 FY26 as against 71.0% in Q1 FY25, led by strong double-digit growth in ‘The Source’ range.

Growth in Wine Tourism was driven by increased footfalls, resort occupancy rose 82% in Q1 FY26 compared with 70% in Q1 FY25 and a 6% year-on-year increase in spends per guest.

Sula Vineyards, CEO, Rajeev Sawant, said, “We reported steady revenue from operations in Q1 FY26, excluding the one-time WIPS gain recorded in Q1 FY25. Own Brands growth was muted due to continued urban demand softness, and a lower trade placement of wine in June’25 in Maharashtra - our #1 market, as announcement of excise duty hike on spirits prompted heavy pre-loading of spirits by distribution at pre-revision prices. However, that said, this is a positive development going forward for the company and wine industry in Maharashtra.

Encouragingly, despite these headwinds, states such as West Bengal, Goa, UP, Rajasthan, among others recording healthy double-digit growth. In terms of portfolio mix, share of Elite & Premium increased over 300 bps YoY to 74.7% with The Source and RASA continuing to see strong traction.

Wine Tourism remains a bright spot, growing 22% YoY led by higher footfalls, record Q1 occupancy and spend per guest. Our new wine tourism offering – Dindori Tasting Room & Bottle Shop at ND wines, near the Gujarat border is now open and welcoming visitors. Upcoming projects – ‘The Haven by Sula’ our 30-key resort near York and the new tasting room at Domaine Sula are on-track to open in time for this festive season. With these expansions and recent opening of Samruddhi Highway reducing the Mumbai-Nashik drive time by 45 minutes, the outlook for wine tourism remains strong.

In other exciting news, furthering our legacy as India’s wine pioneers, we are pleased to launch India’s first aromatic low-alcohol still Muscat wine - Sula Muscat Blanc. The Source Moscato, our first sparkling Muscat is the fastest wine from the Sula stable to hit 10K cases and we expect Muscat Blanc to emerge as a consumer favorite too. Looking ahead, while the year began on a challenging note, we remain firmly focused to deliver healthy operating profit growth for the rest of FY26.”

Sula Vineyards is principally engaged in the business of the manufacture, purchase, and sale of premium wine and other alcoholic beverages.