Sula Vineyards LtdQ1 FY27
Sula Vineyards Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹147P/E: 48.9Market Cap: ₹1.3K CrSector: Beverages
Management growth scorecard
Revenue
Category 4
Margin
Category 2
Fundraise
N/A
Order
N/A
Capex
Yes
1 of 3 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 4- →Sula Vineyards expects sales growth to resume as the industry recovers from a recent period of consolidation and elevated raw material costs.
- →The Own Brands business is on a recovery path, with a 2% growth in Q1 FY27 and a focus on Elite & Premium wines, which grew 6%.
- →Growth driven by premiumization of portfolio, with The Source and RASA flagship brands showing strong double-digit growth.
- →Wine Tourism is expanding rapidly, with 12% revenue growth in Q1 FY27 and plans for new resort developments and facility expansions.
- →Anticipate improved profitability from normalized grape costs expected by Q4 FY27 and full normalization by Q1 FY28.
- →Market expansion planned with additional brand listings in CSD and wider distribution pan-India.
- →Optimistic about growth in existing and new markets, despite short-term softness in Karnataka and Economy & Popular wine segments.
- →Expectation of sustained demand with seasonality skewed toward Q3 as the strongest quarter annually.
Margin guidance
Category 2- →Sula Vineyards expects profitability to improve over the course of FY27 as grape procurement mix normalizes and resort occupancies scale up.
- →Higher grape costs impacting gross margins will subside starting Q4 FY27 and fully normalize by Q1 FY28, benefiting Popular & Economy wine margins.
- →The company aims to recover and surpass last year’s EBITDA margin levels before the end of FY27 through cost optimization initiatives.
- →Net debt levels are expected to decrease through FY27, reducing finance costs.
- →Wine Tourism business, with higher profitability and expanding portfolio, is a key growth driver.
- →Expansion projects like Domaine RASA and new event facilities are expected to support higher event-led revenues.
- →Market expansion, especially in CSD and non-core states, is expected to contribute positively.
- →Overall, steady revenue growth and improving margins are anticipated, driven by premiumization and operational efficiencies.
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Fundraise plans
- →No explicit mention of any current or planned new fundraising through debt or equity in the transcript.
- →Net debt as of June '26 stood at INR 319 crores, down from INR 345 crores a year ago, indicating a trend of reducing debt.
- →Management emphasized ongoing focus on balance sheet discipline and expects net debt levels to continue trending lower by the end of FY27.
- →Interest costs have declined, supported by lower average debt levels and lower borrowing costs.
- →There was no discussion about issuing new equity or raising funds through equity markets.
- →The company is studying potential investments in constructing new resorts but no concrete fundraising plan was disclosed related to this.
Order book
The transcript of Sula Vineyards Limited Q1 FY27 Earnings Call does not provide specific information about current or expected order book or pending orders. Key points relevant to operations include:
- Focus on wine production and wine tourism expansion, including acquisition and operation of Domain RASA (former Chandon estate).
- Continued recovery and growth in Own Brands and Wine Tourism segment.
- No mention of specific order book or pending order metrics.
- Strategy emphasizes premiumization, expanding distribution, and improving wine tourism infrastructure.
- Capex mainly focused on wine tourism projects and operational optimization rather than production order backlog.
Therefore, no explicit details on order book or pending orders are disclosed in the available transcript.
Capex plans
Yes- →Completion of amphitheater expansion at flagship Nashik campus (completed July 2026).
- →Opening of new bottle shop at Domaine Dindori (scheduled for next week from August 2026).
- →Construction of new 5,000 sq. ft events pavilion at Nashik campus on track for completion in Q3 FY27, enhancing event hosting capabilities.
- →Acquisition and development of Domaine RASA (erstwhile Chandon estate) completed at INR 20 crores; winery operations to commence in Q4 FY27 during 2027 harvest.
- →Plans to expand and enhance Wine Tourism portfolio, including at new Domaine RASA facility.
- →Potential future investments in constructing new resorts under study; currently, most resort keys are under management contracts with partners, resulting in asset-light model.
- →Continued allocation of growth capex towards expanding Wine Tourism business, which is showing double-digit revenue growth.
How does Sula Vineyards Ltd rank vs peers in Beverages?
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