Sula Vineyards (SULA) Q4 24/25 earnings summary

Executive summary

• Achieved record wine tourism revenue in Q4 FY25, driven by SulaFest and strong resort performance.

• Own brands sales reached Rs. 109.6 Cr in Q4 FY25, with a 12.9% YoY increase, though flat after adjusting for exports and WIPS.

• Elite & Premium segment now forms 75.5% of portfolio, with healthy growth in 'The Source' and double-digit growth in key states.

• Approved audited standalone and consolidated financial results for Q4 and FY ended 31 March 2025, with unmodified auditor opinions.

• Recommended a final dividend of INR 3.60 per share for FY25, subject to shareholder approval at the AGM scheduled for 26 June 2025.

Financial highlights

• Q4 FY25 revenue from operations: Rs. 133.1 Cr, up 1.1% YoY; gross profit: Rs. 104.0 Cr, up 16.1% YoY.

• Operating EBITDA for Q4 FY25: Rs. 28.5 Cr, up 3.4% YoY; PAT: Rs. 13.0 Cr, up 3.8% YoY.

• FY25 consolidated revenue from operations: Rs. 619.4 Cr, up from Rs. 608.65 Cr in FY24; PAT: Rs. 70.2 Cr, down from Rs. 93.31 Cr in FY24.

• Gross margin in Q4 FY25 improved by 375 bps YoY to 78.2%.

• Standalone net profit for FY25 was Rs. 33.40 Cr, down from Rs. 94.69 Cr in FY24.

Outlook and guidance

• Focus on improving profitability and returning to earnings growth in FY26.

• Planned expansions in wine tourism and D2C business, with new resort and tasting room openings in FY26.

• On track to expand cellar capacity by 1 Mn liters by end of FY26 at 33% lower capex.

• Dividend of INR 3.60 per share recommended for FY25, reflecting continued commitment to shareholder returns.

• Management notes seasonality in business, with revenue, costs, and profits not accruing evenly over the year.