Sula Vineyards reports Q2 and H1 FY25 results

Sula Vineyards Limited, India’s largest wine producer, announced its financial results for the second quarter and first half of FY25, highlighting a 10th consecutive quarter of growth in its Own Brands segment.

H1 net revenue reached Rs 271.7 crore, reflecting a 3.7 per cent year-over-year increase, while Q2 revenue was Rs 142.0 crore, down 3.7 per cent YoY. Own Brands revenue in Q2 totalled Rs 127.2 crore, up 5.9 per cent, and wine tourism revenue was slightly lower at Rs 12.2 crore, a decrease of 0.6 per cent YoY. EBITDA for Q2 stood at Rs 34.4 crore, down 9.7 per cent YoY, with an EBITDA margin of 24.2 per cent. Profit after tax also declined to Rs 14.5 crore, representing a 20.9 per cent decrease YoY and yielding a PAT margin of 10.2 per cent.

The Elite & Premium wines segment showed resilience with a seven per cent growth in Q2, contributing to an all-time high share of 78.5 per cent in total sales. The company experienced growth in regions outside of Maharashtra and Karnataka, particularly in Telangana, Madhya Pradesh, and West Bengal.

Wine tourism also saw increased spending per guest and improved occupancy rates. The company has expanded its Bottle Shop at ND Wines and plans further expansion at Domaine Sula.

Rajeev Samant, CEO, Sula Vineyards, commented, "We are pleased to report our 10th consecutive quarter of growth in our Own Brands business. However, Q2 FY25 was a subdued quarter, due to slowdown in consumer discretionary demand, particularly in urban areas where 90 per cent of our sales are concentrated, and temporary disruptions in key markets like Karnataka and Delhi."

He further added, "During the quarter, our Elite & Premium portfolio performed well with a seven per cent YoY growth, led by strong double-digit growth in our iconic brands - The Source, RASA, and Dindori. It is encouraging to see wine culture flourishing beyond our core markets, with strong double-digit growth in states like Telangana, Himachal Pradesh, Madhya Pradesh, Uttarakhand, and West Bengal, affirming our commitment to building a truly pan-India brand."

"Looking ahead, while mindful of near-term challenges, we remain optimistic for the festive season on the back of structural tailwinds including the reopening of Andhra Pradesh after a hiatus of five years, introduction of four new labels in the CSD market and the return of SulaFest at our Nashik vineyards. We are confident the long-term Indian wine story remains intact, and we see a long runway of growth ahead of us," he concluded.