Mumbai, Aug 6 (IANS) Sula Vineyards, one of India's largest wine producers, on Thursday reported a sharp decline in profitability for the first quarter, with net profit falling 45 per cent year-on-year (YoY) amid weaker operating performance and margin contraction.
The company posted a net profit of Rs 1.06 crore for the quarter ended June, compared with Rs 1.94 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Revenue from operations rose 3 per cent year-on-year to Rs 112.88 crore from Rs 109.64 crore.
However, operating profitability weakened, with EBITDA declining to Rs 16.60 crore from Rs 18.30 crore a year ago.
As a result, EBITDA margin contracted to 14.7 per cent from 16.7 per cent in the year-ago quarter, it said in its regulatory filing.
Following the earnings announcement, shares of Sula Vineyards traded lower. The stock closed intra-day session at Rs 167, down 2.2 per cent or Rs 3.76 on Thursday.
The stock has remained under pressure across multiple timeframes, declining 1.47 per cent over the past five trading sessions and falling 8.67 per cent in the last one month.
Over the past six months, the shares have lost 11.24 per cent, while on a year-to-date basis the stock has declined nearly 23.6 per cent.
Founded in 1999 by Rajeev Samant, Sula Vineyards is India's largest and most-awarded wine producer and is widely credited with pioneering wine tourism in the country.
Headquartered in Nashik, Maharashtra, the company commands more than half of India's domestic 100 per cent grape wine market.
Sula produces a variety of wines, including Chenin Blanc, Sauvignon Blanc, Riesling and Zinfandel, and operates vineyards and production facilities in Maharashtra and Karnataka.
Apart from wine manufacturing, the company has built a significant tourism business around its vineyards, offering tasting experiences, guided tours, restaurants and luxury hospitality properties such as The Source at Sula and Beyond by Sula.
--IANS
pk
