India's Sula Vineyards' quarterly profit falls as higher costs weigh on margins

Sula Vineyards

06/05/2026 16:02

May 6 (Reuters) - India's Sula Vineyards SULA.NS reported a lower profit for the fourth quarter on Wednesday, as rising costs and weak demand squeezed the winemaker's margins.

The country's largest wine producer by market share posted a consolidated net profit of 85.9 million Indian rupees ($907,938) for the quarter ended March 31, down 34% from 130.3 million rupees a year earlier.

Revenue from operations was up 7.1% at 1.43 billion rupees.

However, total expenses rose 9% to 1.32 billion rupees, outpacing revenue growth and weighing on margins.

Sula's earnings before interest, taxes, depreciation and amortization (EBITDA) fell marginally from last year, on higher costs for blended grapes and a one-off inventory-related gain in the same quarter last year.

Young consumers across the world are moving away from alcoholic and sugary beverages and swapping them for healthier alternatives, pushing many liquor companies to introduce zero-alcohol variants.

The winemaker's gross margin contracted to 70.7%, down 7.45 percentage points from last year.

However, growth in Sula's elite and premium wine portfolio accelerated during the quarter.

($1 = 94.6100 Indian rupees)

 (Reporting by Bipasha Dey and Devika Nair in Bengaluru; Editing by Diti Pujara)

 ((Bipasha.Dey@thomsonreuters.com))