India’s leading wine producer, Sula Vineyards, sees its first-quarter profit slump as operating margins contract even with a modest revenue rise, highlighting ongoing profitability challenges despite expanding wine tourism.
Sula Vineyards said its first-quarter profit fell sharply as softer operating performance and a narrower margin offset a small rise in revenue. According to the company’s stock exchange filing, net profit for the quarter ended June dropped to Rs 1.06 crore from Rs 1.94 crore a year earlier, even as revenue from operations increased 3% to Rs 112.88 crore.
The Nashik-based wine producer also reported weaker earnings before interest, tax, depreciation and amortisation, with EBITDA easing to Rs 16.60 crore from Rs 18.30 crore in the same period last year. That pushed the EBITDA margin down to 14.7% from 16.7%, underscoring the pressure on profitability even though sales held up.
The latest quarterly numbers come after a more difficult full year. Business Standard reported in May that Sula’s consolidated net profit fell 34% in the March quarter, while the company’s full-year profit slumped 63.46% to Rs 25.65 crore and sales declined 4.02% to Rs 555.87 crore. Another market update from Moneycontrol said own-brand sales weakened even as wine tourism continued to expand, with that segment rising 22% in the quarter.
Sula, founded in 1999 by Rajeev Samant, remains India’s largest wine producer and a leading name in wine tourism. The company says it accounts for more than half of the domestic market for 100% grape wine and operates vineyards and production facilities in Maharashtra and Karnataka, alongside hospitality assets built around its wine business.
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