Sula Vineyards Q2 Update: Revenue Estimated To Grow 11%

Sula Vineyards Ltd. estimated on Wednesday a revenue growth of 11% in the second quarter due to strong demand for its premium wines and increased footfall at its vineyards.

The winemaker expects its own brands—accounting for about 91% of sales—to report a revenue growth of 14% year-on-year to Rs 116.2 crore in the September quarter, according to its quarterly business update filed with the exchanges.

The sales uptick was led by elite and premium wines, which grew 18% during the quarter, the owner of the Dindori and Rasa wine brands said.

"Our focus on premiumisation continues to pay off," Chief Executive Officer Rajeev Samant said. With double-digit growth, the elite and premium wine portfolio bucked the slowing trend in discretionary spending in the overall economy during the second quarter, he said.

Revenue from wine tourism is estimated to grow by 26% to Rs 12.1 crore, the company said.

Sula has seen a massive 43% jump in tastings to over 49,000 in the quarter. "The future looks even brighter as we achieved our highest-ever footfall on Oct. 1, with a record 3,850 wine adventurers passing through our gates," Samant said.

During the quarter, the company launched its first Pinot Noir from The Source range, which is Sula’s fastest-growing premium wine brand. The Source Pinot Noir is now available in Maharashtra. It would be launched in other key markets in the financial year 2025, Samant said.

Sula also expanded the iconic Nashik winery tasting room to keep up with the continuing surge in visitor numbers.

In the first half of the fiscal, the company estimated a revenue growth of 15%, of which the own-brands portfolio would see a revenue growth of 22%, led by the premium and elite categories with 24% growth. Revenue from wine tourism is projected to grow 19% during the period, it said.

The company is anticipating a strong harvest once again despite the irregular monsoons, which bodes well for meeting the increasing demand for Sula's elite and premium wines.

Shares of Sula Vineyards closed 0.12% higher at Rs 466.55 apiece on the NSE as compared with a 0.62% advance in the benchmark Nifty.