Sula Vineyards Q4 FY25 Performance: Marginal Revenue Decline, Wine Tourism Shines

Sula Vineyards, a leading Indian winery, reported a marginal decline in net revenue for Q4 FY25 (January-March 2025), posting Rs 132.6 crore compared to Rs 131.7 crore in Q4 FY24. Despite challenges in its core wine business, the company’s wine tourism segment delivered strong growth, and the full-year results for FY25 marked an all-time revenue high. Below is a detailed analysis of the company’s performance.

Q4 FY25 Financial Highlights

Net Revenue

• Q4 FY25: Rs 132.6 crore, a slight increase from Rs 131.7 crore in Q4 FY24.
• The marginal uptick reflects mixed performance across segments, with gains in wine tourism offsetting declines in own-brand sales.

Own Brands

• Revenue from own brands fell 2.9% year-on-year (YoY) to Rs 109.6 crore in Q4 FY25, down from Rs 112.9 crore in Q4 FY24.
• The Elite & Premium portfolio remained flat in the domestic market, but the Elite category alone achieved a healthy 8% YoY growth.
• The Source range was a standout performer, recording robust double-digit growth.

Wine Tourism

• The wine tourism segment saw significant growth, with revenue rising 24.6% YoY to Rs 20.4 crore in Q4 FY25, compared to Rs 16.4 crore in Q4 FY24.
• This segment continues to be a key growth driver for the company.

Full-Year FY25 Performance

For the fiscal year 2024-25, Sula Vineyards achieved record-high revenue, driven by steady growth in both its core wine business and wine tourism segment.

• Total Revenue: Rs 618.8 crore, up 1.7% from Rs 608.7 crore in FY24.
• Own Brands: Revenue grew 2.2% to Rs 546.2 crore, compared to Rs 534.2 crore in FY24.
• Wine Tourism: Revenue increased 10.2% to Rs 60.3 crore, up from Rs 54.7 crore in FY24.
• The company highlighted double-digit growth in the wine tourism segment as a key contributor to its annual performance.

Strategic Developments

• Sula Vineyards expanded its portfolio by securing listings for four new wines with the Canteen Stores Department: Dindori Reserve Shiraz, RASA Syrah, The Source Grenache Rosé, and Sula Riesling.
• This brings the total number of Sula wines listed with the department to nine, strengthening its market presence.

Q3 FY25 Recap

While Q4 results showed resilience, the company faced challenges earlier in the year:

• Consolidated Net Profit (Q3 FY25): Dropped 34.71% YoY to Rs 28.06 crore, compared to Rs 42.98 crore in Q3 FY24.
• Revenue from Operations (Q3 FY25): Declined 1.42% YoY to Rs 200.15 crore in the December 2024 quarter.

Stock Performance

• On April 11, 2025, Sula Vineyards’ shares gained 3.24%, closing at Rs 275.45.
• The stock market will remain closed on April 14, 2025, for Dr. Babasaheb Ambedkar Jayanti.

Business Overview

Sula Vineyards is primarily engaged in the manufacture, purchase, and sale of premium wines and other alcoholic beverages. Its portfolio includes a range of wines catering to diverse consumer preferences, complemented by a growing wine tourism business centered around its vineyard experiences.

Conclusion

Sula Vineyards’ Q4 FY25 performance reflects a mixed picture, with a marginal revenue decline driven by softer own-brand sales, offset by robust growth in wine tourism. The company’s full-year results demonstrate resilience, achieving record revenue despite market challenges. Strategic moves, such as expanding listings with the Canteen Stores Department, position Sula for continued growth. However, profitability pressures, as seen in Q3, highlight the need for careful cost management and sustained demand for its premium offerings.

Disclaimer

The information in this report is based on company announcements and market data. Investors are advised to consult certified financial advisors, assess their risk tolerance, and conduct thorough research before making investment decisions. Market conditions can change rapidly, and individual circumstances vary.