The acquisition strategy is primarily targeted at margin enhancement, with Sula expected to leverage its extensive pan-India distribution network spanning 25,000 point-of-sale touchpoints across 23 states and 7 union territories.
As of FY2025, the company reported a Net Debt/EBITDA ratio well below its internal benchmark of 2×, reflecting a healthy leverage profile. When approached by CNBC-TV18, Sula’s management declined to comment on what it termed market speculation, but said it consistently evaluates opportunities to improve revenue, profitability and shareholder value.
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Sula Vineyards Ltd reported a mixed performance for the June 2025 quarter, with consolidated net revenue declining 7.9% year-on-year to ₹118.3 crore from ₹128.4 crore in Q1 FY25.
The fall was primarily driven by a 10.8% drop in own-brand wine revenue, which slipped to ₹102.3 crore, as the company faced the twin impact of subdued urban consumption and the lingering effects of excise-driven trade pre-loading in Maharashtra.
Wine tourism, however, emerged as a growth driver, with Q1 revenue rising 21.8% YoY to ₹13.7 crore, aided by higher footfalls, record occupancy at its resorts, and increased guest spending. The newly operational Samruddhi Highway, which shortens travel time from Mumbai to Nashik, also boosted momentum.
Sula’s premium wines, including The Source and RASA, saw strong demand, while the company also launched ‘Sula Muscat Blanc’, India’s first low-alcohol Muscat wine at 7.5% ABV, it had said in July’s business update.
Shares of Sula Vineyards surged as much as 8% on August 20 after CNBC-TV18 first reported its potential diversification into spirits. The stock closed at ₹257, up 2.49%, on NSE.
(Edited by : Sheersh Kapoor)
First Published: Aug 20, 2025 3:43 PM IS
