Sula Vineyards Limited announced Q3 & 9M FY25 results today.
Q3 & 9M FY25 – Key Highlights
- Highest Ever 9M Net Revenue at INR 489.2 Cr (+1.7% YoY)
- Revenue Growth Outside Maharashtra & Karnataka: 8% YoY driven by strong double-digit growth in West Bengal, Haryana, Delhi, MP, Rajasthan, Chandigarh, and more.
- Elite & Premium Portfolio Performance: Led the way with a 5.6% growth in Q3.
- Wine Tourism: Demonstrated strong momentum, benefiting from a vibrant festive & wedding season with higher spends per guest, improved occupancy (81% vs 76% LY), and increased ARR.
- Share of Elite & Premium: Reached an all-time high of 80.5% in Q3 (vs 77.0% YoY).
- Impact of WIPS Credit Decline: Lower by INR 4.7 Cr due to capping of WIPS reimbursement at INR 20 Cr per year for the Domain Dindori Unit, resulting in a 160 bps direct EBITDA impact.
Financial Summary
| Particulars (INR Cr) | Q3FY25 | Q3FY24 | YoY | 9MFY25 | 9MFY24 | YoY |
|---|---|---|---|---|---|---|
| Net Revenue | 217.5 | 218.9 | -0.6% | 489.2 | 480.8 | +1.7% |
| – Own Brands | 194.7 | 192.8 | +1.0% | 436.5 | 421.3 | +3.6% |
| – Wine Tourism | 16.4 | 14.7 | +11.6% | 39.9 | 38.4 | +4.1% |
| EBITDA | 53.9 | 73.2 | -26.3% | 123.5 | 150.3 | -17.8% |
| EBITDA Margin % | 24.8% | 33.5% | -865bps | 25.2% | 31.3% | -600bps |
| Profit After Tax (PAT) | 28.1 | 43.0 | -34.7% | 57.2 | 79.8 | -28.3% |
| PAT Margin % | 12.9% | 19.6% | -674bps | 11.7% | 16.6% | -490bps |
| Basic Earnings Per Share | 3.32 | 5.09 | -34.7% | 6.77 | 9.45 | -28.3% |
Insights from CEO
“We are pleased to report our 11th successive quarter of growth in the Own Brands business. However, our pace of growth slowed in Q3 due to three major factors: a broad-based consumption slowdown in urban India, election-related disruptions in Maharashtra, and a reduction in WIPS credit captured by INR 4.7 Cr compared to the previous year, following the capping of WIPS at INR 20 Cr per year at our Domain Dindori facility.
That said, we have kicked off production at our Nashik unit, positioning us to realize 100% of the potential WIPS starting from FY26.
Despite these challenges, we are seeing several positive long-term trends that will continue to drive our growth. Our Elite & Premium portfolio maintained strong momentum, even in a subdued market. Revenue from regions outside Maharashtra and Karnataka remained robust, with over 10 states achieving strong double-digit growth, now contributing 50% to our Own Brand sales.
Additionally, our Wine Tourism segment recorded its highest-ever Q3 revenue, growing 11.6% YoY, showcasing our unique appeal in hospitality. This segment is on track for a strong finish in FY25, with the success of SulaFest’25 and the launch of our Dindori Tasting Room & Bottle Shop in Q4.
Looking ahead, we are focused on driving profitable growth, targeting a significant expansion in earnings from FY26 as consumer demand recovers”, says Rajeev Samant, CEO, Sula Vineyards.
