Shares of Sula Vineyards Ltd slumped over 5% to ₹264.35 on Thursday after the company reported a sharp decline in profitability for the first quarter of FY25. The stock saw heavy trading volumes, with over 2 lakh shares changing hands.
The wine-maker’s consolidated net profit dropped 86.7% year-on-year to ₹1.94 crore, down from ₹14.6 crore in Q1 FY24. Revenue also fell 7.9% YoY to ₹118.3 crore from ₹128.4 crore.
Operational performance was particularly weak. EBITDA declined 44.6% YoY, and EBITDA margin shrank to 17%, compared to 28% in the same quarter last year. The contraction in margins signals increased cost pressures and lower operating leverage.
Despite the seasonal nature of the business and a stronger wine demand outlook in the premium segment, the Q1 results suggest significant near-term challenges for the company in managing profitability.
Disclaimer: This article is based on publicly available financial data and company disclosures. It does not constitute investment advice.
