Sula Vineyards (SULA) investor relations material

Executive summary

• Revenue grew 3% year-over-year in Q1 FY27, driven by recovery in own brands and double-digit growth in wine tourism.

• Elite and premium portfolio led growth, with The Source and Rasa brands expanding distribution and achieving double-digit growth; these segments now comprise 78% of own brands sales.

• Wine tourism revenue rose 12% YOY, now contributing 13% to overall revenue, supported by new resort openings and higher guest spend.

• Acquisition of Domaine Rāsā (formerly Chandon Estate) for INR 20 crore completed, expanding wine tourism and production capacity.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2026 were approved by the Board, with no material misstatements identified.

Financial highlights

• Net revenue from operations increased to INR 121 crore from INR 118 crore in Q1 last year; consolidated revenue was INR 120.79 crore.

• Gross profit declined 5% YOY due to higher grape costs and adverse geographical sales mix; gross margin fell 550 bps to 68.5%.

• EBITDA margin impacted by higher grape procurement costs and lower-margin market mix; operating EBITDA was INR 16.6 crore, margin at 14.7%.

• Net profit for the quarter was INR 1.06 crore (consolidated) and INR 4.09 crore (standalone), with PAT margin at 0.9%.

• Net debt reduced to INR 319 crore from INR 345 crore YOY.

Outlook and guidance

• Expect normalization of grape costs from Q4 FY27 or Q1 FY28 as procurement mix rebalances.

• Profitability expected to improve as The Haven occupancy rises and grape costs decline.

• Net debt levels anticipated to trend lower by end of FY27.

• Planned expansions (amphitheatre, wine shop, events pavilion) to boost wine tourism revenue in H2 FY27.

• Strategy focuses on product launches, expanding premium brands, and growing wine tourism footprint.