Sula Vineyards Limited — Updates, 05-02-2025: Press Release

**Financial Highlights:** Sula Vineyards reported a record 9M net revenue of INR 489.2 Cr, reflecting a 1.7% increase year-over-year. Q3 net revenue slightly decreased by 0.6% to INR 217.5 Cr. The EBITDA margin fell to 24.8%, down 865 bps YoY, as EBITDA dropped 26.3% to INR 53.9 Cr. Profit after tax also saw a significant reduction of 34.7% to INR 28.1 Cr.

**Strategic Initiatives and Growth Drivers:** The company continues to expand its Elite & Premium segment, achieving a historic high share of 80.5%. Wine tourism revenue surged by 11.6% YoY, attributed to higher guest spending and increased occupancy.

**Business Developments:** Despite challenges, including consumption slowdowns and regulatory impacts on WIPS credits, Sula is optimistic about future growth, particularly as it ramps up production at the Nashik unit.

**Market Position and Competitive Advantage:** With over 50% market share in the domestic wine sector, Sula maintains a strong position through diverse offerings and innovative wine tourism experiences.

**Investor Implications:** While facing short-term challenges, the company's long-term growth prospects appear solid, particularly with the performance of the Elite & Premium segment and the successful wine tourism initiatives. Potential recovery in consumer demand bodes well for future earnings expansion.