Q3 2026 Sula Vineyards Ltd Earnings Call Transcript
Key Points
- Sula Vineyards Ltd (BOM:543711) reported strong demand recovery in Maharashtra, its largest market, with consistent single-digit growth.
- The company experienced double-digit growth in Telangana following the conclusion of the license renewal process, with expectations for continued growth.
- Sula Vineyards Ltd saw healthy double-digit growth in other markets like UP, Rajasthan, Goa, and CSD, with CSD sales up nearly 40% year-on-year.
- The Source range of wines delivered strong double-digit growth, increasing its share within Own Brands to 11% in Q3.
- Wine Tourism business achieved a robust year-on-year growth of 34% in Q3, with increased footfalls and the opening of a new resort, The Haven by Sula.
- The company faced a challenging quarter with significant revenue and profitability impacts due to destocking in Karnataka, its second-largest market.
- Gross margins contracted by 270 basis points year-on-year, primarily due to an adverse state mix and lower contribution from high-margin markets like Karnataka.
- EBITDA for the quarter declined by 40% year-on-year, with an 800-basis-point contraction in margins.
- The company recognized a one-time exceptional charge of INR1.70 crores related to the impairment of certain York brands.
- Interest costs increased by 4% year-on-year, reflecting higher average debt levels, although net debt declined sequentially.
Ladies and gentlemen, good day, and welcome to Sula Vineyards Q3 and nine months FY26 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand over the conference to Mr. Mandar Kapse, Head, Investor Relations. Thank you, and over to you, sir.
Yes. Good afternoon, everyone. On behalf of the management team at Sula, I would like to welcome you all to the Q3 and 9M FY26 earnings call. Today on the call from the management team, we have with us Founder and CEO, Mr. Rajeev Samant; and CFO, Mr. Abhishek Kapoor. They will take us through the Q3 performance and answer your questions.
As always, we'll kick off today's call with Rajeev, sharing his thoughts on the operating environment, as well as the business performance. This will be followed by Abhishek taking us through the financial highlights for the quarter, post which, we'll open the forum for Q&A.
Before we proceed, I'd just like to draw your attention to the safe
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