Revenue growth outpaced costs, lifting Sula's margin 5.59 points
Q2FY27 revenue rose +20.07% sequentially while expenses grew +12.19%, but other income still made up 8.70% of pre-tax profit.
Filed 05 Nov 2026, 17:46 IST · after market close · Sula Vineyards Ltd (SULA)
Key takeaways
- In consolidated Q2FY27, revenue grew +20.07% sequentially while expenses rose +12.19%, lifting operating margin by 5.59 percentage points.
- Net profit rose +663.21% sequentially to Rs 8.09 cr as the tax rate fell 4.34 percentage points, although other income was 8.70% of pre-tax profit.
- Sula's 20.30% operating margin was 9.61 percentage points above the 10.69% median for 62 reported FMCG peers.
Price around the results
Q2FY27 operating leverage widened sharply
Sula's consolidated revenue rose +20.07% sequentially to Rs 135.53 cr, while operating profit increased +65.72% to Rs 27.51 cr. Because expenses grew more slowly than revenue, operating margin expanded to 20.30%, up 5.59 percentage points from Q1FY27. Interest was broadly flat at -0.28% sequentially and depreciation rose only +0.97%, supporting the improvement below operating profit.
Lower tax rate amplified the profit increase
Profit before tax rose +618.42% sequentially and net profit increased +663.21%, helped by the low Q1FY27 base and a 4.34-percentage-point reduction in the tax rate to 25.92%. Other income contributed 8.70% of pre-tax profit, so the quarter's earnings increase was primarily operating-led but not entirely recurring in quality.
Margin remained well above the reported FMCG peer median
Sula's 20.30% operating margin was 9.61 percentage points above the 10.69% median for 62 Fast Moving Consumer Goods peers that had reported the same quarter. The available trend shows a sequential rise from 14.71% in Q1FY27, but it does not establish a longer multi-quarter direction.
Management outlined capacity and portfolio expansion
Management said wine tourism revenue reached Rs 16.30 cr in Q2FY27, up +23.70% year on year, and said cellar capacity had increased by 1 million litres to 19.20 million litres. The company told analysts it can expand volumes by 80-85% without further winery capex. Management also said it plans to expand The Source and Rasa nationally, launch wine-based ready-to-drink products in Q3FY27, and open a 35-key fourth hotel by Q4 FY28.
Results were filed after market close
Sula filed the consolidated Q2FY27 results after market close on 5 November 2026 at 17:46 IST. The stock's post-results response is therefore not assessed in this note.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹136 cr | ₹113 cr | +20.07% |
| Other income | ₹1 cr | ₹2 cr | -60.08% |
| Expenses | ₹108 cr | ₹96 cr | +12.19% |
| Operating profit | ₹28 cr | ₹17 cr | +65.72% |
| Operating margin (%) | 20.30% | 14.71% | — |
| Interest | ₹7 cr | ₹7 cr | -0.28% |
| Depreciation | ₹10 cr | ₹10 cr | +0.97% |
| Profit before tax | ₹11 cr | ₹2 cr | +618.42% |
| Tax | ₹3 cr | ₹0 cr | +515.22% |
| Net profit | ₹8 cr | ₹1 cr | +663.21% |
| EPS (₹) | ₹0.95 | ₹0.13 | +630.77% |
Operating margin of 20.30% compares with a Fast Moving Consumer Goods sector median of 10.69% across 62 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Wine tourism revenue was INR 16.3 crore in Q2 FY27, up 23.7% year on year.
Guidance & outlook
- Sula aims to accelerate earnings growth over FY26-FY29 with improved EBITDA margins and capital efficiency.
- Sula can expand volumes by 80-85% without further winery capex.
- Sula plans to expand The Source and Rasa nationally and tap new markets, consumer cohorts and occasions.
- Sula targets opening its fourth hotel, a 35-key property, by Q4 FY28.
Planned next quarter
- Sula plans to launch wine-based ready-to-drink products in Q3 FY27.
Expansion
- Sula increased cellar capacity by 1 million litres to a total of 19.2 million litres.
- The fourth hotel is expected to increase Sula’s room capacity by 20% to 185 keys.
What to watch
- Whether operating margin holds above 20.30% after the 5.59-percentage-point sequential expansion.
- Whether expenses remain below revenue growth after rising +12.19% against revenue growth of +20.07% in Q2FY27.
- The reported contribution from wine-based ready-to-drink products following management's stated Q3FY27 launch plan.