Sula Vineyard shares dipped 2% following the release of its Q3 FY25 results, revealing a significant 34.9% drop in net profit to ₹28 crore from ₹43 crore a year earlier. As of 9:15 AM, the shares were trading 3.21% lower at Rs 353.00.
The company’s revenue declined by 1.4% to ₹200 crore, while EBITDA fell 26.1% to ₹53 crore, leading to a contraction in margins from 35.3% to 26.5%. The dip was attributed to rising costs and reduced operating leverage.
Despite the quarterly decline, the company witnessed a 1.7% year-on-year increase in net revenue to ₹489.2 crore over a nine-month period. Notably, revenue outside Maharashtra and Karnataka surged by 8%, with double-digit growth in West Bengal, Haryana, Delhi, Madhya Pradesh, Rajasthan, and Chandigarh.
Elite and Premium wines remained a strong growth driver, rising 5.6% in Q3 and pushing their market share to an all-time high of 80.5% from 77% last year. Wine tourism also flourished amid a vibrant festive and wedding season, benefiting from higher guest spending, improved occupancy at 81% compared to 76% last year, and increased average room rates.
The company faced a 160 basis point EBITDA impact due to a ₹4.7 crore decline in WIPS credit, following the ₹20 crore annual cap for the Domain Dindori Unit.
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