The company’s net profit came in at Rs 6 crore for Q2, sharply lower by over 58% from Rs 14.5 crore in the same quarter of the previous financial year. Sula’s revenue from operations stood at Rs 139 crore, lower by 1.1% from Rs 141 crore in the corresponding quarter of the previous financial year. Revenue from own brands also slipped over 2% at Rs 124 crore year-on-year.
EBITDA margins also slipped 557 basis points to 18.2% from over 23% reported in the corresponding quarter of the previous financial year, the company’s investor presentation showed.
The company said the fall in revenue was due to short-term route-to-market disruption in Telangana –the company’s third-largest market, where the expiry of retail licenses in November 2025 led retailers to destock ahead of new license issuances in December 2025. “That said, with the license auction process expected to conclude soon and the supply transition to new holders commencing in December 2025, a good recovery is anticipated towards the latter half of H2,” the company said in a regulatory filing.
“Decline in EBITDA margin of 557 bps YoY, much lower than gross margin contraction as tight cost control drove a sharp reduction in overheads 8% YoY, offsetting part of the gross margin decline. EBITDA margins expected to improve in H2 FY26, supported by higher WIPS income, the phasing out of high-cost inventory from last year, and sustained healthy traction in Wine Tourism,” the management added.
Wine tourism is gaining momentum, fuelled by a surge in visitor footfalls, higher resort occupancy, and greater spending per guest. Resort occupancy rose to 77% in Q2 FY26 from 74% a year ago, reflecting stronger demand as more travellers seek immersive vineyard experiences that blend leisure, luxury, and local flavours.Also read: ‘I am going quiet’: Warren Buffett says will no longer write annual letters in a poignant note filled with grace
At about 9:25 AM, shares of the company were trading at Rs 244, down 3% from the last close on the NSE. Sula Vineyards’ stock price is down over40% since the start of 2025.
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