Sula Vineyards is feeling the heat this quarter. India’s top wine company reported a 7.9% drop in Q1 FY26 revenue, coming in at ₹118.3 crore. Shares of Sula Vineyards slipped 1.3% after the news.
At the heart of the dip is a 10.8% fall in revenue from Sula’s own wine brands, which slid to ₹102.3 crore from ₹114.6 crore last year. The company blamed two key reasons: a slowdown in urban demand and pre-loading of trade driven by changes in Maharashtra’s excise policy.
That means wine sellers had already stocked up earlier, cutting into sales now. Also, young city drinkers are watching their wallets more closely.
But not all is gloomy.
Wine Tourism is Buzzing
Sula’s wine tourism business is booming. It grew 21.8% year-on-year to ₹13.7 crore, up from ₹11.3 crore in Q1 FY25. More people visited the vineyard, resorts stayed full, and guests spent more.
One reason? The newly opened Samruddhi Highway. It cuts down travel time between Mumbai and Nashik, making weekend getaways easier. The road may be new, but it’s already bringing fresh traffic to Sula’s gates.
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Premium Wines Still Winning
Even with the revenue dip, Sula’s premium wine lines like The Source and RASA saw strong growth. These wines cater to a richer, more loyal crowd—less affected by short-term price shifts.
Sula also launched something bold this quarter: India’s first low-alcohol still Muscat wine. Called Sula Muscat Blanc, it has just 7.5% alcohol. That’s a smart move in a world where health-conscious drinking is trending.
What’s Next for Sula Vineyards?
While Q1 numbers show some pain, Sula Vineyards is clearly playing a long game. Tourism is growing. Premium wines are doing well. And the brand is trying new things to stay ahead.
Yes, core brand sales are down. But this might be a short-term adjustment, not a long-term slump.
For investors, Sula is still a top player in India’s growing wine scene. And for weekend travelers, the vineyard isn’t just open—it’s buzzing.
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