Sula Vineyards Share Price Falls 2% as Q1 Revenue Declines 8%, But Wine Tourism Grows 22%

Market Performance

On July 14, 2025, the Sula Vineyards share price declined 2% in early trade, falling to ₹293 per share. The decline followed the release of the company's provisional Q1 FY26 business update, which reflected a dip in overall revenue figures.

• Current Share Price: ₹293
• 5-Day Drop: ~4%
• 6-Month Decline: ~22%
• YTD Performance: Down over 29%

Main News: Q1 FY26 Business Update

Sula Vineyards released its unaudited Q1 FY26 results post-market on July 11, 2025. The numbers revealed a decline in operational revenue, impacted by several short-term market factors.

Revenue

• Q1 FY26 Revenue from Operations: ₹118.3 Crore
• YoY Decline: 7.9% (vs ₹128.4 Crore in Q1 FY25)
• Note: Previous year's revenue included a one-time benefit of ₹10.4 Crore
• Adjusted YoY Growth (excluding one-time gain): +0.2%

Own Brands Revenue

• Q1 FY26 Own Brands Revenue: ₹102.3 crore
• YoY Decline: ~11% (vs ₹114.6 crore in Q1 FY25)

Contributing Factors:

• Ongoing slowdown in urban consumption
• Excise duty increase on spirits in Maharashtra (effective June 25, 2025) led to pre-load stockpiling by traders
• Temporary blockage in wine placement due to the above stocking

Despite the challenges, Elite & Premium wine categories showed double-digit growth, driven by strong demand for labels like The Source and RĀSĀ.

Wine Tourism Sees Record Growth

One bright spot in the business update was the remarkable growth in wine tourism, showcasing consumer enthusiasm beyond just product sales.

• Q1 FY26 Wine Tourism Revenue: ₹13.7 Crore
• YoY Growth: 21.8% (vs ₹11.3 Crore in Q1 FY25)
• Highest-Ever Q1 Revenue from wine tourism

Key Growth Drivers:

• Record resort occupancy rates
• Increased guest spending per visit
• Higher footfalls due to reduced travel time on the Samruddhi Highway (Mumbai–Nashik travel shortened by ~1 hour)
• Opening of Dindori Tasting Room and Bottle Shop near the Gujarat border

Company Details: New Product Launch

Sula Vineyards introduced a new addition to its portfolio—'Sula Muscat Blanc', touted as India's first low-alcohol still Muscat wine.

Product Highlights:

• Alcohol Content (ABV): 7.5%
• Initially available in Maharashtra, followed by Karnataka
• Part of the bestselling Sula Vineyards range

This move marks Sula's push toward diversification and new consumer trends in wine drinking preferences, particularly for low-alcohol options.

Summary of the Article

The Sula Vineyards share price took a 2% hit following a mixed Q1 FY26 performance. While operational revenue dropped 7.9%, it was mainly due to an exceptional one-time benefit last year. Own Brands revenue dipped by 11% due to urban slowdown and regulatory factors.

However, the company reported robust growth in wine tourism, up by 22%, hitting its highest-ever Q1 figures for the segment. The successful launch of 'Sula Muscat Blanc' further reflects the brand's evolving market strategy.

Despite current headwinds, the company continues to attract wine enthusiasts through tourism and innovation, helping maintain interest in Sula Vineyards' share price among investors and industry watchers.