Sula Vineyards Ltd

Sula Vineyards Limited: Trading window closed from October 1, 2026 until 48 hours after the declaration of Unaudited Financial Results for the quarter ending September 30, 2026 (both days inclusive).

Resolutions and status

• Purpose: postal ballot to approve two governance resolutions.
• Resolution 1 (Ordinary): Appoint Chaitanya Rathi as Non-Executive Non-Independent Director, liable to retire by rotation.
• Outcome: Pending; results to be announced by 9 Oct 2026.
• Resolution 2 (Special): Pay Rs 4,00,000 annual commission to Chaitanya Rathi.
• Material impact: governance changes; no share capital or buyback implications.

Meeting Details

• Date: 20 August 2026; multiple time slots.
• Time slots: 11:00-11:50, 12:00-12:50, 14:00-14:50, 15:00-15:50, 16:00-16:50.
• Mode: Physical; group and one-to-one interactions.
• Venue: Trident BKC, C56, G Block, Bandra Kurla Complex, Mumbai.
• Organiser: DAM Capital Alcoholic Beverages Conference.

Participants

• Company representatives to participate; no specific management names disclosed.

Purpose

• Participation in analyst/institutional investor meetings for investor interaction.

Financial Performance

• Q1 net revenue from operations rose 3% YoY to INR 121 crores.
• Wine Tourism revenue grew 12% YoY to INR 15.5 crores in Q1.
• Elite & Premium portfolio grew 6% in Q1.
• The Source & RASA together account for 16% of Own Brands sales.
• Shiraz Cabernet grew high single-digit; ~45% of Own Brands revenue.
• Economy & Popular under pressure due to discounts; offset by Elite & Premium.
• Telangana growth over 50% YoY; Karnataka soft; Maharashtra resilient.
• CSD listings rise to 14 from 9; launch by Q3 FY27.
• Wine Tourism contributes ~13% of total revenue; Haven occupancy 63%.
• Excluding Haven, occupancy above 70%.

Operating Update

• Source and RASA distribution expanded beyond core markets to Haryana, Goa, CSD, Exports.
• The Source Chardonnay and The Source Grenache Red launched; positive market response.
• Haven occupancy 63%; excluding Haven, occupancy over 70%.
• Domain RASA tasting room and bottle shop operational; winery operations from harvest 2027.
• Wine Tourism contributes ~13% of total revenue.
• CSD brand listings increased to 14 from 9; completion by Q3 FY27.

Balance Sheet and Cash Flow

• Net debt at end June 2026: INR 319 crores; down from 345 crores.
• WIPS outstanding stood at INR 88 crores; reduced to ~INR 80 crores by July.

Projects and Capex

• Amphitheater expansion at Nashik campus completed in July.
• Domaine Dindori bottle shop opens next week.
• New 5,000 sq ft events pavilion at Nashik on track for Q3 completion.
• Acquisition of Chandon estate for INR 20 crores; Domain RASA renamed.
• Out of 150 keys, 70 are owned; rest managed via partnerships.
• Resorts are constructed by partners; asset-light model supports margins.

Outlook and Guidance

• Grape costs expected to subside from Q4 FY27; normalize by FY28.
• Margin to recover to last year's EBITDA levels; may surpass by FY27 end.
• Net debt to trend lower by FY27 end; finance costs to moderate.
• CSD expansion to boost revenue in FY27.

Q&A Highlights

• Raw material dynamics uncertain; competition rationalization discussed.
• Karnataka market weakness acknowledged; industry degrowth; some recovery anticipated.
• Resorts follow asset-light model; leases typically 10 years.
• 70 owned keys; remaining keys under partnerships; Haven cited as example.

Meeting Details

• Date: 7 August 2026.
• Meeting type and mode: earnings call; mode not specified.
• Event/organiser: earnings call by Sula Vineyards Limited.
• Purpose: discuss unaudited Q1 FY2026 results for quarter ended 30 June 2026.
• Recording: audio recording available on company website.

Participants

• Key company participants not specified in filing.

Meeting Details

• Date and time: 13 August 2026, 2:00 PM to 5:00 PM IST.
• Type/Mode: Group and one-on-one, physical Mumbai.
• Event/Organizer: Emkay Confluence 2026 – India: Full Throttle Ahead.
• Nature: Investor conference participation.

Participants

• Key company participants: company representatives (roles not disclosed).

Purpose

• Purpose: Analyst/institutional investor conference participation.

Business overview

• Leading Indian wine company with 19.2 million liter winery capacity.
• Diverse portfolio of 60+ labels across price points.
• Wine tourism operates three luxury resorts and multiple centers.
• D2C expansion supported by wine tourism platform.
• Chandon acquisition completed; renamed Domaine Rāsā.

Operational highlights

• Chandon estate acquired; renamed Domaine Rāsā with TR and shop active.
• Amphitheatre expansion at Sula campus completed July 2026.
• Domaine Dindori wine shop to open August 2026.
• Events Pavilion (5,000 sq ft) at Sula campus under construction.
• Domaine Rasā wine tourism facilities operational; winery to commence Q4 FY28.
• Wine tourism revenue growth; ARR up 5% YoY.

Financial performance

• Net Revenue from Operations: 112.9 Cr; up 3% YoY.
• Gross Profit: 77.3 Cr; Gross Margin 68.5%.
• Operating EBITDA: 16.6 Cr; EBITDA Margin 14.7%.
• Own Brand Revenue: 104.3 Cr; Elite & Premium share 78%.
• Wine Tourism Revenue: 15.4 Cr; YoY +12%.
• PAT: 1.0 Cr; PAT Margin 0.9%.
• Debt-to-EBITDA below 3x; FY26 balance sheet healthy.
• Wine Tourism contributing 13% to total revenue.

Capital structure & liquidity

• Debt-to-EBITDA remains below 3x; FY26 balance sheet healthy.
• 5 MW solar; 2 MW storage improving energy costs.
• Liquidity supported by cash flows; no near-term financing announced.
• D2C expansion and tourism revenue underpin liquidity.

Strategic priorities & outlook

• Accelerating earnings growth FY26-FY29; margin expansion and capital efficiency.
• Expand The Source and Domaine Rāsā footprint; broader national availability.
• Pursue strategic investments and acquisitions in Wine Tourism and Indian AlcoBev.
• Continue expanding pan-India tastings and promotional events.
• Chandon acquisition completed; Domaine Rāsā destination development in Nashik.
• The Haven resort expansion; 50-key expansion completed by Q4 FY26.

Risks & mitigation

• Temporary margin pressure from higher blended grape costs; mitigated by opex savings.
• Market mix shift away from core markets; normalization expected in H2 FY27.
• Grape supply costs volatility; remediation via long-term sourcing and price hedges.

Governance & leadership

• Chandon acquisition completed; Domaine Rāsā renamed; governance unaffected.

Q1 FY27 Highlights

• Net Revenue from Operations up 3% YoY to INR 112.9 Cr.
• Revenue from Operations: INR 120.8 Cr; EBITDA 16.6 Cr; margin 14.7%.
• Opex reduced 3% YoY; higher grape costs temporarily impact EBITDA.
• Own Brands revenue 104.3 Cr; Elite & Premium sales up 6% YoY; share 78%.
• Wine Tourism revenue 15.4 Cr; The Haven launch supported room revenue; 12.3% YoY growth.
• Chandon estate acquired and renamed to Domaine Rasā; tasting room and banquet facilities commenced.
• Amphitheatre expansion at Nashik campus completed; Domaine Dindori wine shop to open later this month.
• Events pavilion construction progressing; launch expected ahead of the festive season.
• Grape-cost headwinds are temporary; expected to subside from Q4 FY27 and normalize from Q1 FY28.