NEWS
INDIA’S SULA VINEYARDS PROFIT SLUMP 87% ON WEAK DEMANDS
By Susan Lewis
11-8-2025
Source: Sula Vineyards
Sula Vineyards reported an 87 percent drop in profit to INR19.4 million (USD220,500) in the last quarter, with revenue down 7.8 percent amid weak urban demand and trade pre-stocking in Maharashtra.
The company attributed the muted performance to continued urban demand softness and a temporary disruption in wine placements in Maharashtra province, Sula’s number one market.
The disruption was caused by a significant pre-stocking of spirits by trade ahead of an excise duty hike, which impacted Sula’s shelf space in June.
Despite the weak start, the company sees a silver lining. The excise hike is expected to benefit the wine industry in Maharashtra in the long term by creating a more favourable pricing environment
Rajeev Samant, CEO of Sula Vineyards, said, "Looking ahead, while the year began on a challenging note, we remain firmly focused to deliver healthy operating profit growth for the rest of FY26."
On the bright side, wine tourism revenue grew 22 percent.
The growth in wine tourism was driven by increased footfalls, highest-ever resort occupancy - 82 percent versus 70 percent same quarter last year - and spends per guest up 6 percent.
Samant said that with ongoing expansions and the recent opening of the Samruddhi Highway – cutting Mumbai-Nashik travel time by 45 minutes – the outlook for wine tourism remains robust.
He also said that The Haven by Sula project and the new tasting room at Domaine Sula are on-track to open in time for this year’s festive season.
(the writer can be contacted at: info@thewinechronicle.com)
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