Sula Vineyards shares jump 4% after Q3 business update; own-brand sales touch record high; check details

In morning trade, the stock rallied as much as 4.3% to hit a high of ₹390.4 apiece on the NSE. However, the shares later pared some gains to trade 1.12% higher at ₹378.5 apiece on the exchange.

Sula Vineyards posts record own brand revenue in Q3FY25

According to a business update by the winemaker, the company’s own brand revenue rose by 1% year-on-year to ₹194.7 crore in the October-December quarter of FY 2024-25 compared to ₹192.8 crore in the year-ago period.

Wine tourism revenue jumped by 11.5% to ₹16.4 crore in the third quarter of FY25 compared to ₹14.7 crore in the third quarter of FY24.

Net revenue, including other income, however, slipped by 0.7% year-on-year to ₹217.3 crore in October-December FY25, compared to ₹219 crore in Q3 FY24.

“The wine tourism business demonstrated strong momentum, recording the highest ever Q3 revenue, led by higher spend per guest and strong occupancy rates,” the company said in a stock exchange filing.

It said the Elite & Premium portfolio recorded a 6% YoY growth, led by strong double-digit growth in iconic brands The Source and RASA.

Sula Vineyards said that it looks forward to the return of SulaFest in Q4FY25, which would witness the market debut of Sula cans.

The festival will host artists such as Divine, Ritviz x Karan Kanchan, Oaff & Savera, When Chai Met Toast, Dualist Inquiry and Madboy/Mink.

India’s largest winemaker reported a 37% decline in net profit to ₹14.48 crore for the second quarter of FY 2024-25, compared to ₹23.09 crore in the year-ago period, mainly due to a slowdown in discretionary spending in urban areas.

Its net revenue dropped 1.2% YoY to ₹142 crore in the July-September quarter of FY25 compared to ₹143.7 crore in the year-ago period.

Sula Vineyards’ consolidated net profit dropped to ₹14.48 crore in the quarter ended September 2024, from ₹23.09 crore a year ago.