Sula Vineyards Ltd

- Bulk of planned investments are now behind Sula Vineyards. - Capex for FY '26 and FY '27 is expected to moderate to INR 20-25 crores annually, less than half of around INR 60 crores incurred in the last financial year. - Significant investment focus on Wine Tourism, seen as a meaningful growth engine. - Over the next 2 years, a lion's share of total capex will be allocated to Wine Tourism. - Plans to add close to 50% more rooms in the next couple of years for Wine Tourism expansion. - The Haven resort expansion added 50 keys (rooms), increasing total room capacity by nearly 50% to 154 keys. - Improved operating leverage expected as new resorts ramp up occupancy.

- Sula Vineyards expects Own Brands to return to growth over the next couple of quarters, driven by improving demand conditions across key markets. - Wine Tourism is poised for strong growth, supported by sustained footfall and new resort expansions like The Haven. - The Source range shows strong momentum with 23% 9-month growth, contributing increasingly to revenues and profitability. - Market share in the domestic elite and premium wine segment is rising, particularly in Karnataka and Telangana. - Expansion plans include adding 50% more hotel rooms for Wine Tourism over the next two years, doubling down on this high-growth segment. - Despite challenges like domestic pricing competition and strategic destocking, Sula remains confident in a healthy recovery and improved performance from Q4 FY '26 onwards. - The company is actively enhancing quality and distribution to remain competitive amid upcoming tariff reductions from EU wine imports.

- Demand conditions are improving markedly across key markets, signaling a positive outlook from Q4 FY '26 onwards. - Own Brands are expected to return to growth over the next couple of quarters. - Wine Tourism business is sustaining strong momentum, contributing significantly to overall performance and expected to grow further with new resort expansions. - Margins are anticipated to improve and gradually revert to normalized levels going forward. - Capex is expected to moderate to INR 20-25 crores annually in FY '26 and FY '27, supporting improved cash flows. - Debt reduction is planned by end of March 2026, improving financial health. - Market share gains in elite and premium segments indicate potential for higher profitability. - Management is cautiously optimistic about a healthy recovery and stronger earnings growth in the near future.

The transcript does not provide specific details on Sula Vineyards Limited's current or expected order book or pending orders. Key points related to operations and outlook include: - The company undertook a tactical destocking exercise in Karnataka to recalibrate channel inventory and improve working capital. - Excluding this destocking, Q3 revenues were broadly in line with the previous year. - Demand conditions are improving across key markets, with growth expected from Own Brands and Wine Tourism. - Sula is focusing on quality improvement and marketplace availability to handle competitive pressures, especially with upcoming duty reductions on imports. - No mention or disclosure of order book size, pending orders, or specific upcoming sales commitments was made during the call. Therefore, no explicit information on current or expected orderbook/pending orders is available in the document.

- There is no mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company indicates a comfortable debt-to-EBITDA ratio of approximately 3x and plans to further reduce debt by March, supported by improved inventory levels and moderation in capex. - Capex going forward is expected to moderate to INR20-25 crores annually, less than half of last year's INR60 crores. - The company is focused on strengthening working capital and managing costs but has not indicated any intention of raising funds via debt or equity in the near term.