Shares of Sula Vineyards Ltd fell 3% to Rs 244.25 on the NSE on Tuesday, November 11, after the company reported a steep decline in its September quarter earnings, largely impacted by sales disruptions in Telangana — its third-largest market.
The winemaker’s net profit dropped 58.6% year-on-year to Rs 6 crore, compared with Rs 14.5 crore in the same quarter last year. Revenue from operations remained almost flat at Rs 139.6 crore, down 1.1% YoY from Rs 141.2 crore.
EBITDA fell 23.9% to Rs 25.9 crore, from Rs 34 crore in the year-ago period, while the EBITDA margin contracted to 18.5%, against 24% last year.
Sula attributed the weak performance to a temporary disruption in Telangana, where liquor stores have halted restocking ahead of license expiries in November. The state’s license auction process is currently ongoing, and management expects a “good recovery” in Q4 FY26 once normal distribution resumes.
Revenue from Sula’s own brands segment, which contributes around 90% of the company’s total revenue, declined nearly 3% YoY due to the Telangana impact. However, excluding the state, the segment recorded low single-digit growth, indicating early signs of recovery in urban consumption.
At Rs 244.25, the company’s market capitalization stood at Rs 20,620 crore, with a P/E ratio of 35.82 and a dividend yield of 1.47%.
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