What caused Sula Vineyards' quarterly profit to drop by 68%?

Sula Vineyards' quarterly profit fell by 68% due to subdued demand in Karnataka and increased expenses, including a charge from new labor codes.

How much did Sula Vineyards' revenue decline?

Sula Vineyards' revenue declined by approximately 10% to ₹196 crore in the quarter ending December 31, 2025.

What factors affected Sula Vineyards' financial performance?

Sula Vineyards' performance was affected by weakened demand in its second-largest market, Karnataka, and higher costs from implementing India's new labor codes.

Home / Business and Economy / Sula Vineyards Profit Plummets 68% Amidst Slumping Demand

Sula Vineyards Profit Plummets 68% Amidst Slumping Demand

6 Feb

•

Summary

Sula Vineyards' quarterly profit fell 68% to ₹9.1 crore.
Revenue declined by 10% to ₹196 crore due to Karnataka's weak demand.
Higher expenses, including labor code implementation, impacted margins.

Sula Vineyards Profit Plummets 68% Amidst Slumping Demand

Sula Vineyards, India's leading winemaker, reported a substantial 68% decrease in its consolidated net profit for the quarter ending December 31, 2025. The company's profit fell to ₹9.1 crore, a sharp contrast to the ₹28.06 crore earned in the same period last year.

Revenue saw a 10% reduction, totaling ₹196 crore. This downturn is attributed to weakened consumer demand, particularly in Karnataka, which represents Sula's second-largest market. This regional softness impacted the company's core own-brands business, which constitutes approximately 90% of its sales.

Compounding the revenue challenges, Sula Vineyards faced increased expenses. A notable factor was a one-time charge of ₹1.7 crore associated with the recent implementation of India's new labor codes, a significant overhaul affecting corporate earnings nationwide. Despite these headwinds, wine tourism revenue experienced a positive surge of 34% year-on-year, partially counteracting the weakness in other business segments.