1. Cost rationalization - reduction in operating costs in FY27 On track - In the FY26 annual report, management said it would continue its cost rationalization program and expected a reduction in operating costs in FY27 too, after opex incl. S&D declined 2% YoY in FY26. Q1 FY27 operating expenses reduced 3% YoY and employee benefit expenses 6% YoY.
2. Battery Energy Storage - up to 2 MW by Q3 FY26 Delivered - At the Q4 FY25 PPT, the plan was to install up to 2 MW of Battery Energy Storage by Q3 FY26. By Q2 FY26 battery energy storage was "more or less at 2 megawatts", and FY26 closed with 2 MW installed.
3. Cellar capacity - expand by 0.1 cr litres to 1.92 cr litres by end FY26 Delivered - At the Q4 FY25 PPT, the company was on track to expand cellar capacity by 0.1 cr litres to a total 1.92 cr litres p.a. by end FY26, at 33% lower capex. In FY26 capacity increased by 0.1 cr litres to 1.92 cr litres per annum at 33% lower capex.
4. At least one new wine launched in FY26 Delivered - At the Q4 FY25 PPT, at least one new wine was to be launched in FY26. Two new wines were launched in FY26 - Muscat Blanc and The Source Chardonnay, with The Source Grenache Red following in Q1 FY27.
5. CSD wine listings - nearly double from 5 to 9 in FY26 Delivered - At the Q4 FY25 PPT, CSD wine listings were to nearly double from 5 to 9 labels in FY26, all 4 new labels from Sula's Elite brands. In March the 4 Elite labels were added, taking total listings to 9, and CSD sales more than doubled YoY on the expanded listings.
6. SulaFest - annual event going forward Delivered - At the Q4 FY25 PPT, SulaFest was to become an annual event going forward, after a Q3 FY25 shift to biennial hosting. SulaFest 2025 was held and SulaFest 2026 was held as a sell-out, an annual cadence across 2025 and 2026.
7. Brownfield winery - phase one of 0.6 cr litre expansion Partial - At the May 2023 announcement, phase one of a planned 0.6 cr litre expansion (a 0.22 cr litre phase) was completed in time for Harvest 2023, implying a remaining \~0.38 cr litre expansion. FY23 capacity was 1.67 cr litres and FY26 capacity reached 1.92 cr litres - a 0.25 cr litre total expansion against the 0.6 cr litre plan.
8. EU FTA - phased duty reduction, limited impact on RASA range Pending - At the January 2026 announcement, management expected a phased duty reduction - first to \~75% after one year, tapering to \~20% for premium and \~30% for mid-priced wines over 7-10 years - with only a limited impact largely confined to the most-premium RASA range. By Q4 FY26 no duty reduction had occurred, and with a EUR 2.50 minimum import price plus a 5% Euro appreciation vs INR, management was "much more comfortable" on the FTA scenario.
9. Earnings growth - accelerate over FY26-FY29 Pending - In the FY26 annual report, management's growth strategy was to accelerate earnings growth over FY26-FY29 with improved EBITDA margins and capital efficiency. FY26 EBITDA declined 25% excluding the one-time WIPS unwinding gain and PAT declined 63%, with management expecting recovery from FY27.
10. Net Debt/EBITDA - maintain below 2x internal benchmark Missed - In the FY25 annual report, management committed to maintain Net Debt/EBITDA below the internal benchmark of 2x over the medium term. By Q2 FY26 Debt/EBITDA was \~2.5x trailing 12-month EBITDA, reaching \~3x by Q3 FY26 and below 3x at Q4 FY26.
11. Karnataka - turn the corner in H2 FY27 Pending - At the Q1 FY27 call, management expected Karnataka to turn the corner in the second half of FY27. In Q1 FY27 Karnataka remained soft, with the entire wine category degrowing in Q1 and in H2 FY26.
12. Grape cost impact - subside in Q4 FY27, normalize from Q1 FY28 On track - At the Q1 FY27 call, management expected the higher blended grape cost impact to subside in Q4 FY27 and fully normalize from Q1 FY28, with the full impact felt in FY28 as the grape mix rebalances post harvest '27. In Q1 FY27 the higher blended grape costs impacted margins by \~150 bps, the impact still present as guided.
13. Net debt - continue trending lower by end of FY27 On track - At the Q1 FY27 call, management expected net debt levels to continue trending lower by end FY27 versus FY26. Net debt at end June '26 stood at ₹319 cr against ₹345 cr a year earlier, lower YoY.
14. EBITDA margin - recover to last year's levels shortly, surpass before end of FY27 Pending - At the Q1 FY27 call, management expected to recover to last year's EBITDA margin levels "shortly" and then surpass them, confident of this before end FY27. Q1 FY27 EBITDA margin was 14.7%, down 197 bps YoY, so the recovery had not yet occurred.
15. FY27 regular capex - lower than FY26 levels Pending - At the Q4 FY26 call, management said regular capex in FY27 would remain lower than FY26 levels, excluding the proposed Chandon asset purchase, with ongoing annual capex now significantly below the ₹50-60 cr levels incurred up to FY25. FY26 capex was \~₹25 cr; FY27 capex is not yet reported, with the Chandon acquisition completed at ₹20 cr in Q1 FY27.
16. Chandon Dindori estate acquisition - conclude in H1 FY27 Delivered - At the Q4 FY26 call, the CFO expected the 19-acre Chandon Dindori estate acquisition to conclude in H1 FY27, pending regulatory approvals and conveyance deed. In Q1 FY27 the acquisition of the former Chandon estate was completed at ₹20 cr and renamed Domain RASA, with tasting room, bottle shop and banquet facilities already operational.
17. Events pavilion - operational in Q3 FY27 On track - At the Q4 FY26 call, the 5,000 sq ft air-conditioned event pavilion at the Nashik campus was expected to become operational in Q3 FY27. In Q1 FY27 the pavilion was on track for completion in Q3, in time for the festive and wedding season.
18. CSD listings - 5 additional wines by Q4 FY26, total 14 On track - At the Q4 FY26 call, management hoped to complete CSD listings for five additional wines (from 9 to 14) before end of year, introducing them in CSD by Q4 to support H2 FY27 momentum; this was revised to completion by Q3 FY27 at the Q1 FY27 call. In Q1 FY27 preliminary approval for the five additional listings was received, taking approved wines to 14 from 9.
19. Room keys - significantly more than 200 keys within 1.5 years Pending - At the Q4 FY26 call, the CEO hoped room keys would expand at a high double-digit rate and that the next project would take the company "significantly more than 200 keys", hopefully delivered within 1.5 years. Current capacity is 154 keys, and in Q1 FY27 management was studying constructing its own resort keys, with no new project announced yet.
20. Price increases - 2-3% in free pricing states in FY27 On track - At the Q4 FY26 call, management said it would take price increases in free pricing states - "in general, we would take something like 2% to 3% a year" - citing packing material cost pressure from the West Asia conflict. Price hikes resumed over the last quarter after \~1.5 years of holding, with no specific Q1 FY27 price increase disclosure.
21. Karnataka - no further material destocking Delivered - At the Q3 FY26 call, management did not anticipate any further material destocking after the significant Karnataka destock. By Q4 FY26 Karnataka "seems to be looking much better moving forward", and in Q1 FY27 Karnataka remained soft though no further material destocking was reported.
22. Own Brands - return to growth over next couple of quarters Delivered - At the Q3 FY26 call, the CFO said "We expect Own Brands to return to growth over the next couple of quarters" with margins gradually reverting to normalized levels. Q4 FY26 own brands grew 5% YoY and Q1 FY27 own brands grew 2% YoY.
23. ROE - 17-18% sustainable once operating leverage returns Pending - At the Q2 FY26 call, Abhishek Kapoor said the 17-18% ROE the company was "clocking earlier" is "something which is a sustainable one" once operating leverage returns, a medium-term claim rather than a dated target. ROE was 16.97% in FY24, 11.97% in FY25 and 4.37% in FY26, still far below the claim.
24. Telangana - strong recovery in H2 FY26 Delivered - At the Q2 FY26 call, management anticipated "a strong recovery towards the latter half of H2 FY26" in Telangana, with supplies starting "from December 1 itself". Telangana returned to double-digit growth in Q3 FY26, delivered robust growth in Q4 FY26 and grew over 50% YoY in Q1 FY27.
25. H2 FY26 operating margin - improvement of 250 bps YoY Missed - At the Q2 FY26 call, management expected a 250 basis point YoY improvement in operating margins in H2 FY26, driven by higher WIPS accrual, wine tourism traction and phase-out of high-cost inventory. Q3 FY26 EBITDA margin declined 800 bps YoY and Q4 FY26 EBITDA margin was 19.5%, down 192 bps YoY, despite a \~200 bps sequential improvement.
26. Debt containment - no further increase in FY26 Delivered - At the Q1 FY26 call, the CFO said low capex and reduced inventory levels "should help contain any further increase in debt this fiscal". Net debt was \~₹350 cr at end-Sept 2025, declined sequentially by ₹36 cr to ₹319 cr at December and closed FY26 at ₹280 cr vs ₹285 cr a year earlier.
27. FY26 capex - moderate to \~₹35 cr annually Delivered - At the Q1 FY26 call, the CFO said capex for FY26 and onwards should moderate to around ₹35 cr annually versus ₹50-60 cr per annum in the prior 3 years; this was revised to ₹30-35 cr at Q2 FY26 and to ₹20-25 cr at Q3 FY26. FY26 capex stood at approximately ₹25 cr, with CWIP falling from ₹5.52 cr (FY25) to ₹0.85 cr (FY26) per the reported financials.
28. Raw material cost initiatives - positive gross margin impact in H2 FY26 Missed - At the Q1 FY26 call, the CFO said initiatives to lower raw material costs and improve manufacturing efficiencies should show "a positive impact on gross margin in [the] balance part of the year" as high-cost inventory was utilized. Instead, Q2 FY26 gross margin contracted \~900 bps YoY, Q3 FY26 contracted 270 bps YoY and Q4 FY26 gross margin took a \~350-400 bps adverse hit from grape mix and wine carryover.
29. Gross margin one-off - normalize from Q3 FY26 Delivered - At the Q1 FY26 call, the CFO said the wine-sourcing gross-margin one-off "will continue into quarter 2, [to] a much lesser extent. From quarter 3 onwards, this effect will normalize due to a comparable base". Q2 FY26 gross margin contracted \~900 bps YoY with \~400 bps optical from the sourcing model change, and by Q3 FY26 the route-to-market change had fully tapered off with no further margin impact.
30. CSD sales - solid growth in FY26 with expanded portfolio Delivered - At the Q1 FY26 call, management expected "solid sales growth in CST this year with our expanded portfolio". CSD sales more than doubled YoY in Q2 FY26, grew double-digit in Q3 FY26 with 9-month sales up nearly 40%, and full-year FY26 CSD sales grew 21%.
31. Domaine Sula tasting room and restaurant - Q2 FY26 opening Partial - At the Q1 FY26 call, management said a new tasting room at Domaine Sula (Karnataka) would open in Q2 with restaurant capacity being expanded; this was revised to "before the end of Q3" FY26 at Q2 FY26 and to operational by end Q3 FY26 in the Q3 PPT. The tasting room became operational in Q4 FY26, launched in January 2026, and is "getting rave reviews" - a two-quarter slip.
32. FY25 capex - ₹60-ish cr, ₹10 cr in solar Delivered - At the Q4 FY24 call, management said about ₹10 cr of FY25's capital expenditure budget of ₹60-ish cr would be in solar, revised at Q3 FY25 to a likely ₹55 cr year-end comprising the low-cost cellar and renewables expansion. FY25 capex was not explicitly totaled in our notes - CWIP rose from ₹4.82 cr (FY24) to ₹5.52 cr (FY25) per reported financials - and the Q1 FY26 call noted the last 3 years' capex ran ₹50-60 cr per annum.
33. Low-cost cellar - capital cost ₹80/litre vs ₹120/litre Delivered - At the Q4 FY24 call, management said it was developing a low-cost cellar for cheaper wines at a capital cost of ₹80 per litre versus ₹120 per litre for earlier capacity additions. The low-cost cellar at Domaine Dindori was commissioned at 33% lower capex, consistent with the \~₹80/litre target.
34. Capacity expansion - 0.1 cr litres by 2025 harvest, 6% increase Delivered - At the Q4 FY24 call, management said it would expand capacity by about 0.1 cr litres in time for the 2025 grape harvest, a 6% increase; this was revised to 0.15 cr litres (\~9%) at Q1 FY25 and to 0.25 cr litres with the low-cost cellar in commercial production in February at Q3 FY25. FY25 installed capacity grew 0.15 cr litres from 1.67 to 1.82 cr litres (+9% YoY), with a further 0.1 cr litres to 1.92 cr litres in FY26.
35. Elite & Premium 15% long-term volume growth - still intact Missed - At the Q4 FY24 call, COO Karan Vasani confirmed the 15% long-term volume growth guidance in Elite and Premium was still intact, while the CEO clarified the company was not guiding 15% blended growth for the next 2-3 years but "something a bit short of that" with double-digit growth in mind. FY24 Elite & Premium volume grew 13.4%, FY25 Elite & Premium revenue grew 4.8% and FY26 declined 3.1% excluding the one-time WIPS unwinding.
36. Economy segment volume growth - 5-6% mid-single digits Missed - At the Q4 FY24 call, COO Karan Vasani expected economy segment volume growth of 5% to 6%, i.e., mid-single digits. Q1 FY25 Economy & Popular grew 24%, but Q2 FY25 was down 18% and Q3 FY25 recorded a 15% revenue decline against a 5.5% volume decline.
37. York Winery 31-room resort - FY26 opening Delivered - At the Q4 FY24 call, management targeted opening the 31-room resort with conference facilities at York Winery in FY26, later firmed as a 30-key resort in FY26, in H2 FY26 and "well in time for this festive season" at Q1 FY26. The Haven by Sula launched in October 2025 (Phase 1) with Phase 2's 20 additional keys delivered in December 2025, three months ahead of schedule, lifting room capacity nearly 50% to 154 keys.
38. Domaine Sula resort - operations in FY26 Missed - At the Q4 FY24 call, management hoped to start operations at the resort at Domaine Sula (Karnataka) in FY26. By Q3 FY25 the plan faced permission issues under the Bangalore-Mysore industrial corridor and a large tasting room was being built instead; as of Q1 FY27 management was still hoping for a permissions breakthrough, and no resort operations commenced in FY26.
39. ND Wines tasting room expansion - 3,500 sq ft by December 2024 Partial - At the Q4 FY24 call, management aimed to open the 3,500 sq ft wine tourism expansion at ND Wines - tasting room, bottle shop, restaurant - within FY25, with an internal deadline of before December 2024; this was revised to within Q4 FY25 at Q3 FY25 and to Q1 FY26 in the Q4 FY25 PPT. The Q2 FY25 call had reported the expanded Dindori Tasting Room and Bottle Shop as "now open", andrecords the launch in June 2025 (Q1 FY26), less than 50 km from the Gujarat border - a slip of one to two quarters against the internal deadline.
40. FY26 WIPS capture - closer to 95%, then 100% Delivered - At the Q1 FY25 call, management expected WIPS capture to rise from \~80-85% in FY25 to closer to 95% in FY26, later stating FY26 would "definitely" capture 100% of eligible WIPS and, at Q2 FY26, that 100% of WIPS accruing from Maharashtra sales would be captured. FY26 WIPS accrued ₹48 cr with ₹35 cr received during the year and outstanding ₹86 cr at March 2026 vs ₹72 cr last year, with full capture confirmed.
41. FY25 WIPS realization - balance ₹73 cr in FY25 Missed - At the Q4 FY24 call, management expected to realize the balance outstanding WIPS amount of ₹73 cr in FY25, reiterated at Q1 FY25 and Q2 FY25. During FY25 ₹44 cr accrued in nine months, ₹32 cr was received from Maharashtra and ₹24 cr more in January 2025, cutting the outstanding to ₹63 cr - yet the balance stood at ₹72 cr at end-March 2025, so the full ₹73 cr was not realized.
42. Elite & Premium share - continue rising every year Delivered - At the Q4 FY23 call, management expected Elite & Premium share of Own Brands revenue to keep rising every year versus Economy and Popular, after reaching 72% in FY23, though gains may not match the last four-five years. The share rose from 72.3% in FY23 to 75.2% in FY24, 77.1% in FY25 and 78.4% in FY26.
43. WIPS scheme - Cabinet fine print forthcoming, high confidence Delivered - At the Q3 FY24 call, management expected the WIPS scheme's fine print - the minutes of the Cabinet meeting approving the revival - to be forthcoming that day or possibly the next Cabinet meeting, with high confidence. By Q4 FY24 the WIPS scheme was revived for eight years - four retrospective until FY24 and four after until end FY28 - with a ₹20 cr per unit cap for prospective years.
44. Q4 FY24 own brands - double-digit growth Missed - At the Q3 FY24 call, management fully anticipated returning to double-digit growth for own brands in Q4 FY24, "at this point, midway into Q4". Q4 FY24 own brands grew 8% in volume and 9% in value, with revenue of ₹112.9 cr, +9.1% YoY - short of double digits.
45. S&D spend - peaked in Q3 FY24, stabilize or decline thereafter Missed - At the Q3 FY24 call, management stated S&D spend had peaked in Q3 and would either stabilize or go downwards from there, reiterated firmly to an analyst. Q4 FY24 other expenses rose \~30% YoY on one-offs, and S&D remained elevated - Q1 FY25 expenses up \~18%, Q2 FY25 up \~21% on higher S&D and marketing and Q3 FY25 S&D up 16%.
46. FY24 EBITDA margin - moderate to \~27% Delivered - At the Q1 FY24 call, management guided FY24 EBITDA margins to moderate by a couple of hundred basis points to "more like 27% this year", a range "somewhere between 27% and where we landed up last year was 29% or 30%". FY24 EBITDA margin came in at 30.2%, an all-time high full-year margin, up 108 bps YoY, exceeding the top of the guided range.
47. Wine tourism sales - north of ₹100 cr in FY24 Delivered - At the Q4 FY23 call, management targeted Wine Tourism sales "north of 100 crores in FY'24" against ₹80 cr total in FY23 including D2C wine sales, revised at Q2 FY24 to "something above Rs 90 crores". FY24 wine tourism revenue on a P&L basis was ₹54.7 cr, +21.7% YoY, but including wine sold at hospitality the business reached \~₹95-100 cr, \~15% of revenue.
48. FY24 capex - \~₹55-60 cr, part of \~₹140 cr FY23-FY24 two-year spend Delivered - At the Q4 FY23 call, management guided FY24 capex of about ₹55 cr within a total \~₹140 cr FY23-FY24 spend, "the largest two-year spend on capex ever", reiterated at ₹55-60 cr at Q1 FY24 and revised up to ₹65 cr at Q2 FY24, with ₹5 cr of the increase to renewables plus cellar capacity and land at Domaine Sula. FY23 capex was \~₹80-85 cr and our notes hold no single FY24 total - CWIP rose from ₹1.91 cr (FY23) to ₹4.82 cr (FY24) per reported financials, with \~₹10 cr of solar capex noted - implying two-year spend of \~₹145-150 cr against the \~₹140 cr plan.