Sula Vineyards Share Price Tumble Over 3% as Profit Falls 35% YoY in Q3 FY25 Results

Sula Vineyards, India’s largest winemaker, reported a 35% drop in net profit for Q3. The profit fell to ₹28.06 crore compared to ₹42.98 crore in the same quarter last year.

Urban Market Impact

About 90% of Sula’s revenue comes from urban areas. However, urban consumption reached a two-year low in November due to high food inflation, slow wage growth, and unpredictable weather. This resulted in consumers cutting back on extra spending.

Sales Performance

• Own Brands: Revenue from Sula’s own brands, which make up around 90% of total revenue, grew only slightly by 1%.
• Wine Tourism: The smaller wine tourism segment saw a 12% increase in revenue.

Revenue and Expenses

Total revenue dropped slightly by 0.4%, while total expenses increased by about 11.4% compared to the previous year. The core profit margin also shrank from 33.5% to 24.8%.

Sales were further affected by-elections in Maharashtra, one of Sula’s key markets.

About Sula Vineyards Limited

Incorporated in 2003, Sula Vineyards Limited has grown to become India’s largest wine producer and distributor as of March 31, 2022. The company offers a range of popular wines under several brands—including “RASA,” “Dindori,” “The Source,” “Satori,” “Madera,” and “Dia”—with its flagship label “Sula” recognised as the pioneer of the wine category in India.

On 6 February at 10:41 AM IST, Sula Vineyards share price was trading at ₹350.65, down by ₹14.05 (3.85%) from its opening price of ₹355.25, with the day’s high at ₹355.25 and the low at ₹347.50.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.