Sula Vineyards Limited, India’s largest wine producer and a trailblazer in the domestic wine industry, has reported robust growth in its premium wine portfolio and wine tourism segment for the third quarter (Q3) and nine months (9M) of FY25, despite a challenging market environment. The company, known for its expansive range of wines and innovative wine tourism initiatives, announced its financial results, showcasing resilience and strategic adaptability.
In its latest performance update, Sula posted its highest-ever 9M net revenue of INR 489.2 crore, marking a 1.7% year-on-year (YoY) growth. This growth was largely driven by the company’s premium and elite wine brands, which saw a 5.6% YoY increase in Q3. The share of these higher-end labels in the company’s portfolio reached an all-time high of 80.5% in Q3, up from 77% last year, reflecting Sula’s strategic focus on catering to India’s evolving taste for luxury and quality.
Wine tourism, a key differentiator for Sula, also shone brightly, recording a remarkable 11.6% YoY growth in Q3 revenue. This was attributed to a vibrant festive and wedding season, coupled with higher guest spending, improved occupancy rates (81% compared to 76% in the previous year), and an increase in Average Room Rates (ARR). Sula’s wine tourism business is poised for further growth with the success of SulaFest 2025 and the upcoming launch of a new tasting room and bottle shop at its Dindori facility in Q4.
Revenue from regions outside Maharashtra and Karnataka grew by an impressive 8% YoY, with states such as West Bengal, Haryana, Delhi, Madhya Pradesh, Rajasthan, and Chandigarh delivering double-digit growth. This diversification highlights Sula’s ability to penetrate new markets and reduce reliance on traditional strongholds.
However, the company faced significant headwinds in Q3. A broad-based consumption slowdown in urban India, election-related disruptions in Maharashtra, and the capping of Wine Industry Promotion Subsidy (WIPS) credits at ₹20 crore annually for the Domain Dindori unit negatively impacted profitability. The reduction in WIPS credits resulted in a direct EBITDA impact of INR 4.7 crore for the quarter, contributing to a 26.3% decline in EBITDA to INR 53.9 crore. Profit After Tax (PAT) also fell by 34.7% YoY to INR 28.1 crore, reflecting the pressures on margins.
Despite the short-term challenges, Sula’s management remains optimistic about the future. CEO Rajeev Samant noted, “While the pace of growth slowed in Q3 due to external factors, it is heartening to see the strong momentum in our Elite & Premium portfolio and robust growth in markets beyond Maharashtra and Karnataka. Our wine tourism segment continues to set new benchmarks, and we are excited about the opportunities ahead with the launch of new facilities and the recovery in consumer demand.”
Looking ahead, Sula is targeting significant expansion in earnings from FY26 as it begins to realize the full potential of WIPS credits with the operationalization of its Nashik unit. The company is also deeply committed to sustainability, with ambitious goals to achieve net-zero emissions by 2050 as part of its membership in the International Wineries for Climate Action (IWCA).
Over two decades since its inception in Nashik, Sula Vineyards has revolutionized the Indian wine industry, establishing Nashik as a premier wine region and earning accolades on the global stage. With a portfolio of nearly 70 labels and five state-of-the-art wineries, Sula remains the undisputed leader in the domestic wine market, commanding over 50% market share. The company’s dedication to quality and innovation is evident in its numerous international awards, including honors at the Decanter World Wine Awards and the International Wine Challenge.
