Q2 2026 Sula Vineyards Ltd Earnings Call Transcript
Key Points
- Sula Vineyards Ltd (BOM:543711) reported record growth in its Wine Tourism business, with an 8% increase in Q2 and 15% in H1.
- The company launched a new resort, The Haven by Sula, which is expected to significantly contribute to future Wine Tourism revenue.
- The Source range of wines continues to perform strongly, achieving double-digit growth and forming 10% of own brands revenue.
- Maharashtra, a key market for Sula Vineyards Ltd (BOM:543711), showed signs of recovery, returning to growth in Q2.
- The CSD segment saw robust growth, with sales more than doubling year-on-year in Q2, benefiting from expanded label listings.
- Overall revenue remained flat at INR140 crores, indicating challenges in the market environment.
- Own Brands experienced a marginal decline in Q2 due to route-to-market disruptions in Telangana, a significant market for the company.
- Gross margin contracted by around 900 basis points year-over-year, impacted by adverse market and product mix.
- The company faced higher interest costs due to increased average debt levels and slow collections from Telangana.
- Net debt increased to INR350 crores, primarily due to lower profitability and higher receivables.
Ladies and gentlemen, good day, and welcome to Sula Vineyard Limited Q2 and H1 FY26 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Mandar Kapse, Head, Investor Relations. Thank you, and over to you, Mr. Kapse.
Yes. Thank you. Good afternoon. On behalf of the management team at Sula, I would like to welcome you all to the Q2 and H1 FY26 Earnings Call of Sula Vineyards. 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 Q2 performance and answer your questions. As always, we'll kick off today's call with Rajeev sharing his thoughts on the operating environment and business performance. This will be followed by Abhishek taking us through the financial highlights of 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 harbor statement regarding forward
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