Shares of Sula Vineyards tumbled over 4 percent to Rs 348 apiece on February 6 after the company posted a disappointing set of Q3 FY25 results. The stock also slipped below its IPO price, which was fixed in the range of Rs 340-357 per share.
Over the past month, the stock of this winemaker has tumbled 14 percent, significantly underperforming the Nifty 50, which inched up by 0.3 percent during the same period.
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Sula’s consolidated net profit dropped 35 percent year-on-year to Rs 28.1 crore in Q3 FY25, while revenue from operations saw a modest decline of 0.4 percent YoY to Rs 200.2 crore. On the operating front, EBITDA slid 26 percent YoY to Rs 53 crore, with margins contracting sharply by 890 basis points YoY.
Over the nine-month period, the company reported net revenue of Rs 489.2 crore, reflecting a 1.7 percent YoY increase. Revenue outside Maharashtra and Karnataka rose 8 percent YoY, driven by double-digit growth in West Bengal, Haryana, Delhi, Madhya Pradesh, Rajasthan, and Chandigarh.
Elite and Premium wines continued to drive growth, expanding by 5.6 percent in Q3 and reaching an all-time high of 80.5 percent of total sales, up from 77 percent a year ago.
Wine tourism remained strong, fueled by a lively festive and wedding season. The segment benefited from higher guest spending, improved occupancy (81 percent versus 76 percent last year), and an uptick in average room rates.
Looking ahead, Sula is set to enhance its wine tourism offerings with a 3,500 sq. ft. Dindori tasting room and bottle shop at ND Wines. The company also plans to expand its tasting room, bottle shop, and restaurant capacity at Domaine Sula in the second half of fiscal 2026.
Additionally, a 30-key resort with convention facilities is expected to open at York Winery in the latter half of fiscal 2026.
In line with its sustainability goals, the Nashik-based firm is gearing up to install up to two megawatts of battery energy storage in Q3 FY26, ensuring efficient energy use during peak demand periods.
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