Sula Vineyards Q1FY27 Revenue Up 3% YoY to ₹109.6 Cr; Wine Tourism Soars 12%
Sula Vineyards reported Q1 FY27 Net Revenue of ₹109.6 crore, up 3% YoY. Wine Tourism revenue grew 12.3% to ₹15.4 crore. Elite & Premium sales increased 6% YoY. EBITDA stood at ₹16.6 crore, down 9.4% YoY due to higher grape costs. The company expects profitability to improve in H2 FY27 as grape costs normalize.
The 3% revenue growth is moderate. While wine tourism and premium sales show strength, the decline in EBITDA due to rising costs presents a challenge that could impact investor sentiment.
The company reported revenue growth driven by its premium portfolio and wine tourism, which is positive. However, EBITDA declined due to increased grape costs, indicating a mixed financial performance.
Sula Vineyards Limited announced its Q1 FY27 results, reporting a Net Revenue from Operations of ₹109.6 crore, marking a 3% year-on-year growth. This increase was primarily driven by healthy traction in the Elite & Premium portfolio and a significant double-digit growth in Wine Tourism revenue, which rose by 12.3% to ₹15.4 crore. The Elite & Premium sales saw a 6% YoY increase, with key brands like The Source, RASA, and Sula Merlot showing strong double-digit growth, increasing their share to 78% of total sales.
Despite a decline in the Economy & Popular portfolio, the company saw positive regional performance, with Telangana showing over 50% YoY growth, and strong double-digit growth in markets such as Haryana, Chandigarh, CSD, and Exports. Karnataka, however, remained soft, with expectations of improvement in H2 FY27.
EBITDA for the quarter was ₹16.6 crore, a 9.4% YoY decrease, impacted by a higher blended grape cost (150 bps impact) due to an increased mix of wine grapes over table grapes. However, cost-saving measures led to a 3% YoY reduction in operating expenses, mitigating the EBITDA impact. Management anticipates that the higher grape cost is a temporary factor, expected to subside from Q4 FY27 and normalize by Q1 FY28, supporting improved profitability in the latter half of FY27.
In terms of wine tourism expansion, the company reported revenue growth driven by higher room revenue following the launch of its third resort, 'The Haven'. Sula also completed the acquisition of the Chandon estate, now renamed 'Domaine Rāsā', with its tasting room and other facilities operational. Further developments include the completion of an amphitheatre expansion at the Nashik campus and the upcoming wine shop launch at Domaine Dindori. Construction of an events pavilion is also progressing well, targeted for launch before the festive season.
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