Sula Vineyards Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Revenue stood at Rs. 133.1 Cr in Q4 FY25, up 1.1% YoY. Gross profit rose 6.1% to Rs. 104.0 Cr, boosting gross margin by 375 bps to 78.2%. Operating EBITDA edged down 3.4% to Rs. 28.5 Cr, with margin dipping 98 bps to 21.4%. PAT declined 3.8% to Rs. 13.0 Cr. Own brands revenue fell 2.9% to Rs. 109.6 Cr, impacted by export weakness and lower WIPS credit, though the elite and premium segment share inched up to 75.5%. Wine tourism surged 24.6% to Rs. 20.4 Cr. FY25 revenue grew 1.8% to Rs. 619.4 Cr, but EBITDA and PAT were softer due to margin pressures and higher brand-building expenses.

2. Strategic Initiatives & Growth Drivers:

Focus remains on premiumization with addition of four new elite labels in FY26 and deeper penetration into the Canteen Stores Department. Capacity will expand by 1 Mn liters to 19.2 Mn liters by FY26, with capex lowered by one-third. Investments in wine tourism include new tasting rooms, bottle shops, and a 30-key luxury resort to boost direct-to-consumer sales. Product pipeline includes at least one new wine launch in FY26. Brand engagement is amplified via SulaFest and pan-India tasting events.

3. Business Developments:

Wine tourism posted record quarterly revenue, supported by SulaFest’25 and resort performance. New retail facilities like Dindori bottle shop and expanded Domaine Sula offerings enhance customer experience. The luxury resort at York is operational. Strategic M&A opportunities are actively pursued to consolidate market share and scale.

4. Market Position & Competitive Advantage:

Sula leads domestically with over 50% wine market share and holds one of Asia’s top five winery capacities. It offers 68 labels across segments and has a deep pan-India network of ~25,000 outlets spanning 23 states and 7 UTs. Vineyard acreage exceeds 2,800 acres, ensuring stable grape supply. Sustainability measures cover ~66% annual energy needs via solar and focus on water conservation.

5. Investor Implications:

Short-term margin pressures and export headwinds weigh on near-term earnings, partly offset by strong wine tourism growth and premium portfolio gains. Execution of capacity expansion, brand-building, and D2C initiatives will be key growth levers. Elevated marketing and event spends imply some execution risk, but long-term margin improvement and earnings growth are anticipated from FY26 onward.