Sula Vineyards, one of India’s leading wine producers, reported its financial results for Q4 FY25, showing a revenue of Rs 132.6 crore. While this marks a slight dip from the previous year, the company’s performance reveals a mix of growth and challenges.
Decline in Own Brands Revenue
In Q4 FY25, Sula Vineyards’ revenue from its own brands fell by 2.9%, amounting to Rs 109.6 crore compared to Rs 112.9 crore in Q4 FY24. This slight dip reflects the overall market conditions, but the company’s ability to maintain a solid revenue base speaks to the strength of its brand.
Wine Tourism Shines
On a brighter note, Sula Vineyards’ wine tourism segment demonstrated impressive growth in the same period. The segment recorded a significant increase of 24.6%, bringing in Rs 20.4 crore in Q4 FY25. This was a remarkable performance compared to Rs 13.7 crore during the same period last year. With the rise in domestic tourism and a growing interest in wine tourism, Sula seems to be capitalizing on this trend effectively.
Elite Portfolio and Growth in the Domestic Market
Despite a flat overall performance in its Elite & Premium portfolio in the domestic market, Sula Vineyards saw a healthy 8% year-on-year (YoY) growth in its Elite category alone. The standout performer in Q4 was the Source range, which achieved robust double-digit growth. This suggests that premium offerings are beginning to gain momentum and resonate with consumers.
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Fiscal Year 2024-25: A Strong Overall Performance
Looking beyond the quarterly results, Sula Vineyards’ overall performance for the entire fiscal year was positive. For FY25, the company reported total revenue of Rs 618.8 crore, reflecting a 1.7% growth from Rs 608.7 crore in FY24. While the quarterly results showed a small decline, the annual revenue increase indicates that Sula has managed to build on its existing market share.
Growth in Wine Tourism Segment
Sula’s wine tourism business continued to impress, growing by 10.2% to reach Rs 60.3 crore for FY25, up from Rs 54.7 crore in FY24. This consistent growth underlines the importance of this segment to the company’s overall strategy, especially as it diversifies revenue sources beyond wine sales.
Steady Performance from Own Brands
Revenue from Sula’s own brands reached Rs 546.2 crore in FY25, marking a 2.2% growth compared to the previous fiscal year’s Rs 534.2 crore. Despite some challenges in the last quarter, this steady increase shows that the company’s brand portfolio continues to be a key driver of revenue.
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Expansion in Canteen Stores Department
In a strategic move, Sula Vineyards secured the listing of four new wines with the Canteen Stores Department, further expanding its reach. The new wines, including Dindori Reserve Shiraz, RASA Syrah, The Source Grenache Ros, and Sula Riesling, bring the total number of wines available through this channel to nine. This expansion highlights Sula’s efforts to tap into new markets and grow its consumer base.
Challenges and Profit Decline in Q3 FY25
While Q4 showed positive growth in some areas, Sula Vineyards faced challenges in the previous quarter. The company’s net profit in Q3 FY25 fell by 34.71% to Rs 28.06 crore, compared to Rs 42.98 crore in Q3 FY24. Additionally, revenue from operations, excluding excise duty, declined by 1.42% YoY. These factors underline the difficulties the company has faced in certain segments.
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Stock Performance
On the stock market front, Sula Vineyards’ shares showed resilience. On April 11, 2025, the stock rose by 3.24%, closing at Rs 275.45. This suggests that despite some revenue fluctuations, investors remain confident in the company’s long-term prospects.
A Mixed but Positive Outlook
Sula Vineyards’ Q4 FY25 results highlight a mixed performance, with a slight decline in overall revenue from its own brands, but impressive growth in the wine tourism segment and the premium product lines. The company’s ability to secure new listings and continue growing in niche areas like wine tourism shows its adaptability and forward-thinking approach. Looking ahead, Sula Vineyards seems poised to continue expanding both its market share and brand presence, despite the challenges it faced in the last quarter.
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