Sula Vineyards Q2 Profit Falls 59% as Telangana Disruptions Impact Sales

11 Nov 2025 , 01:11 PM

Sula Vineyards Ltd reported a sharp drop in profit for the September quarter, as sales were impacted by disruptions in Telangana, its third-largest market. The company said liquor stores in the state have not been restocking ahead of the expiry of existing retail licenses in November.

The license renewal process is currently underway, and Sula expects business to recover in the fourth quarter once new licenses are in place.

For the quarter ended September 2025, the winemaker’s net profit fell 58.6% year-on-year to ₹6 crore, compared with ₹14.5 crore in the same period last year. Revenue from operations was largely unchanged at ₹139.6 crore, down 1.1% from ₹141.2 crore a year earlier.

Operating performance weakened, with EBITDA declining 23.9% to ₹25.9 crore from ₹34 crore a year ago. Margins also narrowed to 18.5% from 24% in the year-ago quarter.

The company’s “own brands” segment which includes premium labels such as Dindori and Sula saw revenue fall by nearly 3%. This category contributes about 90% of the company’s total sales.

“Own brands’ performance was subdued primarily due to the short-term disruption in Telangana,” said CEO Rajeev Samant. He added that excluding the state, the segment saw low single-digit growth, indicating early signs of a sales pickup in urban markets.

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