Sula vineyards reported a sharp 86.7% year-on-year (YoY) decline in consolidated net profit for Q1FY26, coming in at ₹1.94 crore compared to ₹14.6 crore in year-ago quarter.
Revenue fell 7.8% YoY to ₹118 crore from ₹128 crore, while EBITDA dropped 44.6% to ₹18.5 crore. The operating margin narrowed significantly to 16.9% from 27.8% a year earlier.
The company attributed the muted performance to continued urban demand softness and a temporary disruption in wine placements in Maharashtra. The disruption was caused by a significant pre-stocking of spirits by trade ahead of an excise duty hike, which impacted Sula’s shelf space in June.
Despite the weak start, the company sees a silver lining. The excise hike is expected to benefit the wine industry in Maharashtra in the long term by creating a more favourable pricing environment.
Rajeev Samant, CEO of Sula Vineyards, said, “Looking ahead, while the year began on a challenging note, we remain firmly focused to deliver healthy operating profit growth for the rest of FY26.”
Shares of Sula vineyards ended lower on Wednesday (August 6) by 0.94% to ₹278.20 on NSE.
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