Sula Vineyards Ltd
NSE:SULA
Sula Vineyards Ltd
Sula Vineyards Ltd. engages in the production and marketing of winery products to local India and international. The company is headquartered in Nashik, Maharashtra and currently employs 729 full-time employees. The company went IPO on 2022-12-22. The Company’s business is classified under two categories: the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the Wine Business); and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the Wine Tourism Business). The company distributes wines under a bouquet of brands. In addition to the flagship brand Sula, its brands include RASA, Dindori, The Source, Satori, Madera & Dia, with its flagship brand Sula, being the category creator of wine in India. The firm produces two types of wine: Still wine, and Sparkling wine. The firm produces over 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. Its direct to consumer (D2C) selling channel primarily operates through its Wine Tourism Business facilities in Nashik and Bengaluru.
Sula Vineyards Ltd. engages in the production and marketing of winery products to local India and international. The company is headquartered in Nashik, Maharashtra and currently employs 729 full-time employees. The company went IPO on 2022-12-22. The Company’s business is classified under two categories: the production of wine, the import of wines and spirits, and the distribution of wines and spirits (the Wine Business); and the sale of services from ownership and operation of wine tourism venues, including vineyard resorts and tasting rooms (the Wine Tourism Business). The company distributes wines under a bouquet of brands. In addition to the flagship brand Sula, its brands include RASA, Dindori, The Source, Satori, Madera & Dia, with its flagship brand Sula, being the category creator of wine in India. The firm produces two types of wine: Still wine, and Sparkling wine. The firm produces over 56 different labels of wine at four owned and two leased production facilities located in the Indian states of Maharashtra and Karnataka. Its direct to consumer (D2C) selling channel primarily operates through its Wine Tourism Business facilities in Nashik and Bengaluru.
Revenue: Q2 revenue was flat at INR 140 crores, showing resilience despite a challenging market.
Wine Tourism Growth: Wine Tourism posted record results, growing 8% in Q2 and 15% in H1, supported by higher occupancy and a new resort launch.
Premium Brands: The Source brand delivered strong double-digit growth, now making up 10% of own brand revenue.
Margins Pressured: Gross margin contracted 900 bps YoY and EBITDA margin declined 530 bps, mainly from adverse mix, sourcing model changes, and higher input costs.
Telangana Disruption: Sales in Telangana, a key premium market, declined due to trade disruptions, but recovery is expected from December as licenses are renewed.
CSD & New Markets: CSD channel revenues more than doubled YoY; eight states outside Telangana grew double digits.
Debt & CapEx: Net debt rose to INR 350 crores; CapEx is expected to drop to INR 30-35 crores annually going forward.
Improved H2 Outlook: Management expects operating margin to improve by 250 bps YoY in H2 driven by higher VAT refunds, wine tourism, and lower inventory costs.
