Fratelli Vineyards Limited (BSE: 541741) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Riddhi Shah — Functional Consultant
Gaurav Sekhri — Chairman & Managing Director
Aditya Brij Sekhri — Director/Executive Director.
Analysts:
Unidentified Participant
Chetan Sharma — Analyst
Girish Kumar — Analyst
Majid Ahmed — Analyst
Rajveer Bharat Tandon — Analyst
Harshita Maheshwari — Analyst
Deepali Kumari — Analyst
Nitin Gupta — Analyst
Kaustav Bubna — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 earnings conference call for Fratelli Vineyards Limited hosted by GoIndia Advisors. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone.
Please note that this conference is being recorded. I would now like to hand the conference over to Ms. Riddhi Shah from Goindia Advisors. Thank you. And over to you, ma’. Am.
Riddhi Shah — Functional Consultant
Thank you. Good afternoon everyone and welcome to Fratelli Vineyards Limited earnings conference call to discuss quarter 3 and 9 month FY26 results. We have on the call Mr. Gaurav Sekri, Chairman and Managing Director. M Mr. Aditya Pekri, Director, Mr. Rajesh Garg, Chief Financial Officer and Mr. Hemat Arora, Chief Business Officer. We must remind you that the discussion on today’s call may include certain forward looking statements and must be therefore viewed in conjunction with the risk that the company faces. May I now request Mr. Gaurav Sekri to take us to the company’s business outlook and the performance subsequently to which we will open the floor for Q and A.
Thank you. And over to you sir.
Gaurav Sekhri — Chairman & Managing Director
Thank you and good afternoon everyone. Am I audible?
operator
Okay, sir, I would request you to come a little closer to the microphone.
Gaurav Sekhri — Chairman & Managing Director
Is it better now?
operator
Yes sir, much better. Please go ahead.
Gaurav Sekhri — Chairman & Managing Director
A warm welcome to all of you joining US for the Q3 and the nine month FY26 earnings conference call of Fratelli Vineyards. I hope you had an opportunity to review our financial results and the investor presentation uploaded on the Exchange. Let me begin by sharing some highlights from the quarter. In Q3, we recorded a healthy growth in revenue along with an improvement in margins. This performance was supported by our evolving product mix and continued momentum in the luxury segment which remains a very important part of our business during Q3. FY26, the luxury segment delivered a revenue growth of 13% for the nine month period.
The segment recorded a revenue growth of 20% reflecting continued strength and healthy demand in this category for our brands. Within this segment, our flagship brand continue to perform extremely well. Janoon delivered a very strong growth reporting 34% growth during the quarter and 53% growth on year to date basis. SETTE also maintained excellent progress with Q3 growth of 5% and year to date growth of approximately 10%. These brands continue to enjoy a strong consumer acceptance and remain central to our portfolio. The Premium and Above category remains a key top line contributor. For the nine month this segment contributed approximately 73% of our revenue reflecting our consistent focus on high value offerings.
In line with this approach, we launched Fratelli Brut during the quarter, strengthening our presence in the super premium sparkling wine segment. This product strongly supports our long term premiumization strategy. With this product we are targeting iconic Horeca accounts as well as Platinum and Gold retail outlets across India. We also marked an important milestone for sete which completes 15 years to this year. To commemorate the occasion, we introduced a limited edition collector’s bottle in collaboration with Manish Malhotra, one of India’s top designers. Setay has always stood for structure, depth and aging potential and this edition celebrates the journey of one of our flagship labels alongside our premium and luxury initiatives.
We continue to expand our offerings in the value segment. The F7 port wine launched in Maharashtra with plans for rollout in other states is also going well. Our Pinot NOIR introduced in July 2025 has shown very encouraging trends, doubling its sales by December and now reaching close to 1600 outlets. Our ready to Drink portfolio continues to deliver good momentum. Shotgun is seeing very good market traction with distribution now expanding to 18 states and the pan India WOD of approximately 7,000 outlets. The brand continues to gain visibility particularly across tier 2 tier 3 markets. We remain confident of reaching close to 100,000 cases by the year end on 31st March 26th.
The RTDs are clearly emerging as an important growth driver for us domestically. We also added three new SKUs including tilt to the CLT portfolio which remains to be a very important part of our business and Fratelli is continuing to see very good acceptance of our wines in the csg. On the international front, our presence has now expanded to 13 countries and more importantly the exports have doubled this year compared to previous years. Let me briefly touch upon the harvest we always take pride in the fact that we are agriculturists and farmers first and winemakers second.
Harvest 2026 has been encouraging for us to despite heavy rains during the season, the vineyard performance will be strong and it has delivered good yields and more importantly very good quality grapes. The quality of wines produced will be to our delight. They will they will be of a quality and standard that we can be proud of and will deliver the best experience possible at every price point. Let me now address an important industry aspect, the India EU Free Trade Agreement, which has been a key topic of discussion across the domestic wine sector. As outlined under the current framework, India’s prevailing import duties on European wines are expected to reduce in a phased manner.
The initial reduction is likely to bring duties down to around 75% with rates gradually easing over a period of time to 20% for premium mines and 30% for mid range wines. Importantly, this adjustment is designed to unfold gradually over several years rather than creating any immediate disruption. It is reasonable to expect that these changes could narrow the price gap between imported European wines and locally produced brands in certain categories. This has naturally raised questions within the industry, particularly giving the aspirational appeal of the imported wines that gives them a natural advantage over the domestically produced wines.
At the same time, it is important to recognize that the duty concessions apply only to wines imported above a minimum cif price of 2.5 Euros per bottle. Wines below this price band, which represent a significant portion of Indian wines, will continue under the existing duty structure of 150%. In practical terms, this means that a large part of the domestic market remains insulated from the immediate tariff reduction within the premium categories. Competitive intensity may increase over time. However. Indian mine makers have already been responding to evolving consumer preferences by steadily moving up the value chain at Fratelli.
This shift is clearly visible in the growing contribution of our premium and luxury portfolio where we continue to see encouraging demand as consumers increasingly trade up to higher quality offerings. While imported brands may benefit from a gradually narrowing price differential, long term competitiveness in the wine industry is rarely determined by pricing alone. For Fratelli, product quality, brand strength, consumer trust and innovation remain equally decisive factors. We already have some validation of this through our brands like Jenoon and Setay which are priced at 2,500 rupees for Setay and approximately 4,000 rupees or 4,500 rupees for Jaloon which are continuing to go very very strongly in the Indian market.
The full impact of the EU FDA is expected to unfold progressively over the coming years. We will continue to monitor developments closely as market dynamics evolve. At the same time, broader category development and increased consumer participation in wine can serve as a positive long term driver for the industry including for domestic producers. One important update in the Holdco level Fratelli Vineyards. We have taken a one time write off of approximately 5 crores to settle a long overdue receivable. By realizing approximately 4 crores post this, total receivables remaining are only approximately 50 lakhs in the old CO and the same will be recovered within FY26.
To conclude, we see encouraging traction across our portfolio and remain confident of sustaining this momentum. Growth in FY27 will be supported by by our expanding RTD business, continued strength in luxury brands and upcoming product launches. I now pass on to Aditya to please update regarding some operating highlights of the business.
Aditya Brij Sekhri — Director/Executive Director.
Good afternoon everyone and thank you for joining us. Let me briefly walk you through our performance for the quarter and the nine month period. Starting with Q3FY26 we recorded net revenue from operations of 65 crores reflecting an 8% growth compared to Q3FY25. This growth was supported by strong performance in the luxury segment and also with. The artery which we’ve launched this year. Gross profit for the quarter stood at 48.8 crores compared to 45 for the last year. Gross margins came in at 76%, broadly stable year on year with marginal variations largely reflecting product mix dynamics. EBITDA for the quarter increased to 5.5 crores from 1.6 crores in Q3FY25 with margins improving to 8.6%. This improvement was driven by operating leverage, disciplined cost management and savings in electricity expenses following our solar installations. At the profitability level we reported a positive PBT of roughly 0.1 Cr compared to a loss in the corresponding period last year. PAT also turned positive reflecting stronger operating performance for the nine month period.
Revenue stood at 147 crores approximately broadly in line with last year though marginally lower. The softer performance during the first half was largely due to regulatory disruptions in certain markets like Maharashtra, Uttarakhand and Telangana. In Telangana, sales were temporarily impacted by expiry of retail licenses with fresh licenses issued in December, normalization is underway and we expect improved momentum in Q4FY26. Similarly, Uttarakhand witnessed an impact following changes in its excise policy where sales are now restricted to imported products or those manufactured within the state for departmental stores which contributed to the large part of our sales previously, gross margin for the nine month period remained healthy at 78% though slightly lower year on year reflecting product mix variations and EBITDA for the period stood at 4.7 Cr during the quarter we remained focused on strengthening our brand through targeted investments in the rtd, launches, rebranding initiatives and collaborations designed to enhance long term growth.
Depreciation and finance costs were higher during the period driven by the commissioning of new assets and borrowings undertaken for capacity expansion. This represents strategic investments that position the company for future scale and efficiency gains for nine months. FY26 we incurred a total capex of approximately 10 crores primarily towards vineyard infrastructure and plant and machinery. These investments are aimed at strengthening our. Future readiness Going forward. Our emphasis remains on strengthening operating leverage, improving efficiencies and extracting greater value from the existing infrastructure that we hold right now. With improved scale and product mix, we expect these efforts to continue. Supporting operating performance. Fratelli today operates with a diversified portfolio of over 50 sqs spanning all relevant wine categories of reds, whites, roses, sparkling wines and the artillery sector now and reaches every relevant price point across all demographics. These offerings combined with the Pan India presence across more than 30,000 touch points now and exports to over 13 countries provide resilience in multiple growth levers.
In relation to the evolving EU FTA framework. The full impact is expected to unfold progressively over time. Management continues to monitor the situation closely. Portfolio strength, brand positioning, product quality and distribution reach will remain key determinants of competitiveness as the industry landscape evolves. Despite near term regulatory challenges, the underlying business fundamentals remain stable. Key segments continue to perform well. Cost efficiencies are improving and the operating environment is showing signs of normalization now. Thank you and we can now open the floor for more questions.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Chetan from Systematics group. Please go ahead.
Chetan Sharma
Yeah. Hi sir. Thank you for the opportunity and congratulations on the improved performance. First, we had a few questions on our statewide business. So you have highlighted Telangana license expiry impacted H1. How big would Telangana be for us in terms of say revenue or volume share?
Aditya Brij Sekhri
So Telangana approximately is still. Despite all the challenges that I’ve had, they have been roughly about. Can you confirm the revenue? 11%.
Gaurav Sekhri
Right.
Aditya Brij Sekhri
Just give us a second. We’ll just confirm this, please.
Chetan Sharma
Yeah. Yes.
Aditya Brij Sekhri
So roughly the contribution is about 15 crores for the year.
Chetan Sharma
Okay. Okay. And what would be say a revenue contribution from a top three states? And which would these three states be?
Aditya Brij Sekhri
So we’ve always given our mix regionally and not at the state level. But as Telangana has been a challenging aspect. We have mentioned that. But the regional mix roughly for US is about 25% from the northern markets. Roughly about 25% from south, 20% from Maharashtra and the west bloc and the balance coming from Eastern Defense.
Chetan Sharma
Okay? Okay, got it. And sir, last a couple of questions on the India ufta. So do you expect some increased competition from the European labels in the say 1500 rupees plus price bands? And if you can highlight what portion of our portfolio will be in this price band.
Gaurav Sekhri
Gaurav Seifi here. See our map shows that a wine which is at 2.5 Euro per bottle, even with the new FTA regulations kicking in, it will land on Indian shelves closer to retail. That’s point one. Now we do have our brands like Setay and Jenoon which currently price themselves higher than this store. Sort of cutoff number. And I had mentioned in my opening remarks that we have seen excellent growth in both of them in this financial year. So I think with European wines becoming even slightly more competitive will only make consumer awareness higher for good quality wines.
And our wines like Satay and Genoon can compete with the best in class. And the response and repeats and recognition those brands are seeing, I am not overly concerned for these two brands at least I cannot speak for the other Indian competition.
Chetan Sharma
Right, Right, sir. And sir, we will also get say better access now to EU markets in terms of exports.
Gaurav Sekhri
Yes, I believe that will benefit us as well. But the export of our wines is a very small part of our overall business. And for the foreseeable future, I think it will remain so. So yes, it will improve our ability also to sell wines there. But Indian wines will always be competing with 50, 80 different countries for shell space. So it will remain to be a small contributor, not enough to matter, frankly.
Chetan Sharma
Right, Got it. Yeah. Thank you, sir. Thank you. And all the best.
Gaurav Sekhri
Thanks.
operator
Our next question comes from the line of Girish Kumar from Valpro. Please go ahead, sir.
Girish Kumar
Am I audible?
Gaurav Sekhri
Yes. Please go ahead,
Girish Kumar
sir. A few questions. My first question is could you help us understand the gap between your healthy gross profit margins and the relatively lower ebitda? What are the primary factors impacting this conversion?
Gaurav Sekhri
See, our most of the costs are in line with some of our competition to the best of our ability. The ones whose records are available publicly for us to compare. Things like cost of goods, et cetera, are very much in check. We do tend to spend more in brand building and brand investments versus competition. We are at around 8% of our top line. I think that is one key factor. Also I think some of the promotions that we do to trade also are little bit on the higher side, higher than where we wish to see them.
But that is a function of as your brand builds and develops, one can control those expenses better. So we are still a very young brand. I think we are maybe another one, two years away from our ability to do that.
Girish Kumar
My second question is, can you share insights on the positioning of your premium brand? What is its current contribution to overall revenue and what growth trajectory do you. See in the future?
Aditya Brij Sekhri
So premium and above brands contribute more than 70% of our revenue. That’s been the case for us for quite some time and will continue to remain the same. The premium and the super premium segment for the nine month period for us saw a moderate decline. It was roughly approximately around 10% for the year. And that was mainly, as I had mentioned earlier, led to a lot of regulatory aspects through the nine month period. However, if you see for quarter three, this has been normalized and it saw a much larger recovery with a 1% growth for the quarter three.
Girish Kumar
And sir, could you break down your revenue by distribution channel? We are particularly interested in understanding how your hotel, restaurant and cafe channel performs compared to your competitors Sula’s presence in this segment.
Aditya Brij Sekhri
So for US it’s roughly 65% coming in from the retail channel and 35% coming from the on trade channel. This is for our bottles business. However, with the launch of Shotgun, our retail contribution now will continue to rise and go north of 70% in the subsequent year.
Girish Kumar
And my last question is, after that I’ll go back to the queue. So what percentage of your total revenue comes from the vineyard, stay and hospitality experiences?
Gaurav Sekhri
Hi, Gaurav Sekri here. That’s a very small part of our business because we at the moment only have a four bedroom property at our vineyards, which when we are not using for our own use, because we have our winemakers and visitors from Italy quite often, then we offer it into the market. So it’s a very, very small component. It’s only four rooms.
Girish Kumar
Okay, sir, I’ll go back to the queue and come back again after some time. Okay, thank you, sir.
operator
Thank you. The next question comes from the line of Majid Ahmed from Pinpoint X Capital. Please go ahead. Yes, please go ahead.
Majid Ahmed
Yes, sir. My first question is how should we think about EBITDA margins going forward and what are the structural divers to support further improvements?
Gaurav Sekhri
See, we are at a business, I think at an inflection point where business has reached a certain size whereby it will reach a net net breakeven within the coming year. So I believe going forward you can expect Fratelli to operate at around maybe around 12, 10 to 12% EBITDA margin can be expected in the immediate future.
Majid Ahmed
So can we expect that in FY27?
Gaurav Sekhri
Yes, that’s right.
Majid Ahmed
Sir. Then what is the go to market strategy for Fertility Brute and excellent four point in terms of target consumers segment and geographical focus?
Gaurav Sekhri
Your voice is a bit muffled. Can you please repeat? We are not fully getting your question. You can attempt again. Sure.
Majid Ahmed
Yeah. Yes, sir. So what is the go to market strategy for readily fruit and F7 port wine in terms of target customer segment and geographic focus?
Aditya Brij Sekhri
So both are completely different products and in completely different segments. The Fideli Brute was launched at a 1500 rupee price point with state of the art packaging with a clear goal to increase our presence in the super premium segment which is between 1000 and 2000 rupees. Given that, there’s still a lot of potential for us to increase our market share in that segment. The F7 which is a port wine which was launched at approximately 280 rupees in Maharashtra has a clear view for us which is to increase our penetration in tier 2 and tier 3 cities and grow our base there in the economy segment.
Majid Ahmed
Okay, sir. Are we targeting south Indian market for these wines? Are we like Pondicherry Gova or Kerala? Any kind of yoga.
Aditya Brij Sekhri
So Fratelli has a very strong presence in all the southern markets. So the products that we have mentioned in the new excise year that we will see right now, we will see these products getting registered there as well.
Majid Ahmed
Okay, sir. Finally, sir, how should we think about amp investments as a percentage of sales over the medium term?
Aditya Brij Sekhri
Do we see it normalizing between 7. To 8% over the next years? That’s the plan.
Majid Ahmed
Okay. Thank you, sir. Thanks. And all the very best.
operator
Thank you. The next question comes from the line of Rajivir Tandon from Ventura Securities. Please go ahead.
Rajveer Bharat Tandon
Hi sir. So. My questions were that first of all could you provide an update on the harvest this year? How was the performance and what specific measures have been implemented to safeguard and enhance the grape quality to support the premium positioning strategy.
Gaurav Sekhri
Hi, Gaurav. Sekri here. The harvest is progressing well so far. The yields and the quality looks good. This was part of my opening remarks. You know, we have been at it now for almost 17, 18 years. So there is a lot of experience in house now to deal with the variables this year. The big variable being very high amount of rain, so a lot of extra humidity. But our team has done an excellent job in managing that. And like I said, we are in the middle of harvest and things are Progressing well.
Rajveer Bharat Tandon
Okay. So my next question would be with the aspirational positioning of European wines in the Indian market and the India EU duty reductions, what do you think the volumes would be for fatality, how it will be affected, the pricing strategy and the competitive positioning.
Aditya Brij Sekhri
So we’ve already given some clarity on the FTA and its impact in our opening remarks. But I’ll just get into a little more detail. The luxury category, which will see an impact eventually in a phased manner is above 2000 rupees. As you had mentioned, with the FTA. Coming into play for us, our revenue contribution from all our products in the luxury category are only roughly 7% of our overall revenue. So while there is a challenge in that segment and there will be more competitiveness, we are also growing the fastest in that segment since we have been the frontrunners in establishing very high quality products for a very long period of time. So while the market will get more competitive in that 2000 plus MRP space, we still see very, very strong growth momentum in Indian consumers getting more informed towards better quality wines coming into play.
Rajveer Bharat Tandon
And do you see any possibility of state governments introducing any additional duties or levies on imported wines to safeguard the domestic producer?
Aditya Brij Sekhri
I think it’s been established the plan going ahead. Of course, a lot of these things will play progressively over the next one year and then get phased out over the next five years. But for the time being, what’s been created is what we are keeping into account as well.
Rajveer Bharat Tandon
Okay, thank you for your responses and best of luck going forward.
Aditya Brij Sekhri
Thank you.
operator
The next question comes from the line of Harshita Maheshwari from INED Research. Please go ahead.
Harshita Maheshwari
Am I audible?
operator
Yes.
Harshita Maheshwari
Thank you for the opportunity. So my first question is on the mind. So could you share an update on the.
operator
Sorry to interrupt. Harita, your. Your voice is muffled. Could you please use your phone, you know, on handset mode in case, if you’re using any hands free.
Harshita Maheshwari
Yeah. Hello. Now it’s audible.
operator
Yes, much better.
Harshita Maheshwari
Okay. So could you share an update on the progress of the wine tourism initiative and the key milestone achieved so far and what timeline should be factored in for project completion? And what kind of revenue potential or margin profile could this segment generate once stabilized?
Gaurav Sekhri
Hi, Gaurav Sikri here on the hospitality front. We are. We have signed a term sheet with an operator. We are now negotiating a definitive agreement and working on other plans for making the funds available as well as the design. Parallelly, I think it will be a bit premature. I would prefer to wait and tell you the Timelines in the next one or two quarters. But we have signed a term sheet. We are progressively working towards towards the definitive agreement as well as the design and the funding.
Harshita Maheshwari
What is the revenue potential margin profile for that segment?
Gaurav Sekhri
Margin profile will be very similar to a typical hospitality business. Our positioning is going to be for a luxury resort, not large. We are not looking to build beyond 40 keys so commensurate with that size. Of course with the added benefit of our ability to be able to do ex cellar door sales of wine which is an attractive part of this business beyond just a typical hospitality PL is the opportunity we get as, as a winemaker to sell excellent. That is very profitable as well as the opportunity to brand build which you know, which is also very good.
So those are the added benefits.
Harshita Maheshwari
Okay, got it. Other question is on short gun. So within Shotgun, what is your current market positioning and share in the relevant category? How much we are allocating towards advertising and promotion and what key initiatives are planned to scale the brand further.
Aditya Brij Sekhri
So Shotgun was launched right towards the end of FY 2425 and has now progressed to being available in approximately 18 states. As I mentioned, the monthly run rate and some of the statistics exactly of the progress I’d be happy to share once the financial year has ended. But as I mentioned we’re on Track to hit 100,000 cases with a revenue contribution of more than 20 crs. Of 20 cr.
operator
Thank you. The next question comes from the line of Deepali Kumari from ACML Capital Markets. Please go ahead. No, Deepali.
Deepali Kumari
Yeah. Now am I audible?
operator
Yes, please go ahead.
Deepali Kumari
Okay, thanks for the opportunity. Could you share your perspective on the overall outlook for the Indian wine industry? How has it evolved over the past few years?
operator
Sorry to interrupt, your voice is breaking. Could you please change your location? No, no. You’re. You’re not audible.
Deepali Kumari
Yeah. Am I audible?
operator
Yes, please go ahead.
Deepali Kumari
Yeah. Okay, so I have few questions like could you share your perspective on the overall outlook for the Indian wine.
operator
Your voice is still not audible. Deepali, I would request you to fall back into the queue, you know, move to the next participant. Thank you. We take the next question from Nitin from MK Global Financial Services. Please go ahead.
Nitin Gupta
Hi, thanks for taking my question. My first question pertains to UP market where last week the budget got in place and seems like there is some sort of a duty reduction. So I just want to check how material is the market for us and how do you think that reduction is going to help overall industry? Wine industry.
Aditya Brij Sekhri
UP has been one of the fastest Growing markets for the Indian wine industry for the last three years, especially post Covid and it contributes approximately 6% of our overall revenue at the moment. The policy for us, the way it comes into play, we’ll get a better idea in the next 15 to 20 days as we get towards the start of the next year. But currently all the industry momentum and the work done in UP looks very promising.
Nitin Gupta
Sure. Thank you. My next question pertains to your how do you see the European FTA impacting like a wine category? So just want to check upon like what is the salience of our revenue above 2000 rupees and I guess the luxury segment you have highlighted 7%. And could you also help us understand the size of the imported wine market in India right now and of that what is the salience of European wine?
Aditya Brij Sekhri
So for us, as I mentioned already, the luxury Cycle contributes roughly 7% of our overall revenue that comes into any of our products above 2000 rupees MRP. The FTA which will get implemented eventually will impact Indian wines above an MRP of 2000 rupees. However that will be done in a phase wise approach. As I already mentioned that since the luxury segment has been a very very dominant part of our portfolio and we hold more than 55% market share in that segment and is growing at more than 20% yoyo, I don’t see any challenges for us in the near or short term future for that segment.
Nitin Gupta
Sure, this is helpful. And like can you help us understand like I guess Indian domestic wine is sized at around 1000 crores. I just wanted to check like what is the size of the imported wines in India and how much of the share is with the European wines.
Aditya Brij Sekhri
Yeah, so it’ll be hard to give an exact number on the share of European wines at the moment. But the imported wine industry is roughly 600 odd crore.
Nitin Gupta
Okay so like around 1600 crore is the overall tan for the wine and our RTD is 500 so around 2100 crore is a PAN. Would that be a good assessment?
Aditya Brij Sekhri
Yes, that’s correct.
Nitin Gupta
Sure. Thank you. And my last question pertains to like in terms of overall wine as a category like any sense you can provide in terms of like the growth has been slow despite like aggressive promotions brand activity. So like what according to you are would be the factors or like a driving factor ahead? Is it like we will continuously have to look into the trade and influence consumer or do you think that state actions are also important in terms of developing the low alcoholic beverages category like wine?
Aditya Brij Sekhri
So I think growth in India still is or should be prevalent across all our categories in which we sell since wine in India is still roughly at only 1% of overall consumption. So we see room to grow in almost every category at the moment. However, the RTD category for the last roughly two years is growing at a speed of almost 30% quarter on quarter and therefore we see a higher growth potential in that segment over the next two years at least. But domestic demand still seems good. The premium segment, which is 700 to 1000 rupees, has been extremely competitive for the last two years and has been affected due to a lot of regulatory factors that have come into play.
However, Q3 was a very, very good sign that things have begun to normalize in that segment as well.
Nitin Gupta
Sure. Thank you and all the very best.
Gaurav Sekhri
Thank you.
operator
The next question comes from the line of Kirish Kumar from Valpro. Please go ahead.
Girish Kumar
Sir. My next question is what is the current state of capex in hospitality project?
Gaurav Sekhri
Hi, Gaurav Sekri here. At the moment we have done very minimal capex only in some, you know, consultant related fee. Otherwise the actual capex has not begun. We have not broken ground. I hope that clarifies the current situation to you.
Girish Kumar
Thanks to My last question is also what is the current trend of wine consumption currently in tier 1, tier 2 and tier 3 cities? Are there any signs of uptick?
Gaurav Sekhri
So I think just before you there was a question kind of related to that and you know, we had presented sort of our view on wine as a category. I think what I can add to that is that wine is an aspirational product. When people come of legal drinking age, when they start drinking alcohol, if you see the choice for that young consumer who is also very conscious of how much money he or she can spend, the options so far have always been products either beer or, or some cheaper spirits, etc. I think what RTD will do and the wine based RTD is a relatively new trend.
It will introduce consumers to the taste and the experience of wine and as. They progress. In their life, in their careers, have slightly more money available to them then they are already prepared to experiment and you know, experience wine. So I believe we will see very strong adoption of wine as a lifestyle product across India. It’s not just tier one, tier two, Tier three. Of course in tier two, tier three cities the potential is even greater and that is how we see the market. I think to that the only other thing to further give you clarity is that in the last three, four years we’ve seen Cities like Kanpur, cities like Vijayabada which have shown very encouraging trends in consumption of wine and India’s many countries within a country, you only need a few pockets like this which can completely change the growth dynamic.
Girish Kumar
Okay, fair enough.
Gaurav Sekhri
So thank you.
Girish Kumar
Thank you very much.
Gaurav Sekhri
Thank you.
operator
Thank you. A reminder to all participants, you may press time one to ask a question. The next question comes from the line of Dipali Kumari from ACML Capital Markets. Please go ahead.
Deepali Kumari
Am I audible now?
operator
Yes, please go ahead.
Deepali Kumari
Okay, so I have just your question. Have we gained market share during the year either overlay in specific segment?
Gaurav Sekhri
Sorry Deepali, we are. Your voice is still muffled.
Deepali Kumari
Yeah. So like have began market share during this year either or overall in a specific segment.
Gaurav Sekhri
I think your question is have we gained market share? Right?
Deepali Kumari
Yeah. Right. Right.
Aditya Brij Sekhri
Yeah. So Deepali, our market share in the domestic wine market for the year still remains at roughly 31% for the nine month period.
Deepali Kumari
Okay. And so like could you provide some guidance on revenue growth and margin for the near to medium term?
Aditya Brij Sekhri
Is that an outlook you’re asking for?
Deepali Kumari
Yes.
Aditya Brij Sekhri
Yes. So the outlook for the year will be to end at roughly 7% revenue growth and with a far better Q4. And for next year we’ll be giving you a better idea in the next quarter’s earnings call.
Deepali Kumari
Okay. And on the margin side.
Aditya Brij Sekhri
On the margin side, we have already given that information. We will be targeting about 10% EBITDA for next financial year.
Deepali Kumari
Okay, that is from my side. Thank you.
operator
Thank you. The next question comes from the line of Maruti Nandan Sarda, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity and congratulations for a good set of numbers. My question is on the long term vision of the company, like by 2030. You have mentioned in previous presentations that we are targeting a 500cr revenue. So are we still on to that number or we are going to increase that? And what is the long term margins we are targeting like next year? You are given that 10 to 12% will be achievable next year. But in long term can we target like 17, 18, 20% margin?
Gaurav Sekhri
Hi, Gaurav Setri here. So firstly I fully believe that you know in a B2C alcove business margins, EBITDA margins of between 15 to 20% even in wine business are very much possible. It’s an issue of scale and getting to a certain point so that one can spread your costs better. I believe that is possible in the coming financial year. We do believe we can get to approximately 10 to 12% EBITDA margin and we would first like to get there and then kind of give you guys guidance further. I hope this sort of helps you get a sense of the direction we are heading.
Unidentified Participant
Got it, got it. Secondly, my question is on, it’s bit hypothetical but you may choose not to answer it also. And currently Sula and Fratelli, these are the, you know, two big boys in the wine industry. So do we have any, any kind. Of plants like Inox and pvr? They did the merger and they became a big giant. So do we have any such plans of, you know, JV or something of that sort?
Gaurav Sekhri
I know, thank you for the question. You know it is impossible to, you know, comment on this. So at this point I think we, you know, we can’t give you any guidance on this.
Unidentified Participant
Thank you. Thank you. And all the best.
operator
Thank you. The next question comes from the line, of course, Pandey from Business Money Solution. Please go ahead. Please go ahead with your question.
Kaustav Bubna
Hello.
operator
Yes sir, Please go ahead.
Kaustav Bubna
Yeah, yeah, so. So my name is Kauster Gubna from BMSPL North. I don’t know where you got that name from, but anyways, thanks for taking my question. So in your presentation you classify that 73% of your revenues come from premium and above. And you’re saying that only 7% of your revenues is 2000 rupees plus. So could you just help me break up at what pricing is premium, super premium and luxury in your portfolio? First that.
Aditya Brij Sekhri
Absolutely. So we’ve done that in the previous earnings calls. We’re happy to do that again. So our premium segment starts at roughly 550 rupees. The premium goes from 550 to 1050. Super premium is 1050 to 2000 rupees and then luxury is 2000 plus onwards.
Kaustav Bubna
Don’t you think that there’s also a possibility for the super premium segment to shift to European wines when they become cheaper just because of the aspirational thought in people’s minds?
Aditya Brij Sekhri
No, I think it will make the market above 2,000 rupees more competitive, that’s for sure. But it will also expose the Indian consumers to a lot better wines which will be available across. So I think again, when they compare an Indian wine with extremely high quality to some good European wines coming in, it will just improve the consumer dynamic. At an overall level. But yes, it will become more competitive. But we’re confident that we’ll be able to hold our advantage as we’re already north of 55% market share in that segment.
Kaustav Bubna
Are you domestic producers getting Together to do some sort of representation to the government. Because of this? Is that even possible? Are you thinking about it? Because of this?
Gaurav Sekhri
This is Gaurav Shakri. We do have a very effective association. And via that association we are in constant dialogue with the government. And we did get a chance to present our case to Ministry of Commerce. But as you know that there are many, many priorities that the government has. We made our side of the story ample clear. And like I said, we have an effective association which has a seat on the table. So it is not like this decision was taken without us being heard.
Kaustav Bubna
Okay? Okay. And in the last nine months FY26 versus nine months FY25, your revenue has basically been flat. So why is this happening? Could you explain why have we been flat on a nine month basis?
Aditya Brij Sekhri
So a lot of those factors were pertaining to the half yearly challenges which we faced in the premium segment which is 550 to 1000 rupees as a whole. So at a nine month level, the whole premium category has been down about 13 to 14% roughly for us. And this was primarily driven by the regulatory factors which are present up to H1. However, in Q3, as I mentioned, this scenario has normalized.
Kaustav Bubna
Okay, fine, I’ll just close my. I’ll just close off by just posing a question to you. Feel free to answer if you want to. You know, regulatory challenges have been coming up. We haven’t really grown much even without European wines being cheaper. Everyone knows that European wines are some of the most preferred wines in the world. I’m just trying to understand how will you grow with this challenge coming ahead. I just finding it really tough to see, you know. And how will you grow with this challenge coming ahead?
Gaurav Sekhri
No, fair enough. I think your concern is, you know, we respect that. See for a firstly, where are we today and how we perform today? I think let’s put it in perspective. We have grown. While we have not grown nine month basis, our Q3 performance this year versus Q3 performance last year, we have started seeing the green shoots of growth again. So I would like to think that this trend will continue. That’s point number one. I think in terms of growth levers consider this. Our luxury business has grown very handsomely in this financial year. Our top selling wine or not top selling, but the most expensive wine from our portfolio, Jenoon has grown almost 50% 5 0.
Now of course the base is small, but clearly there is a consumer preference and a discerning consumer which is having happy to pay that price. And you know, you can you know it is to be expected that the margin profile on such products is far better versus me selling a wine which is at 500 rupees. So we are seeing positive trends there. That’s one second is the RTD business shotgun which is year one. We are approaching almost 100,000 case sale now. That shows the potential of the Indian market. Our ability to judge the consumer preference and deliver a product.
And at a price point which is seeing some consumer love. I think this gives us very good platforms to grow here on. So I remain very confident, very optimistic and I hope the business that we will be able to show quarter on quarter in FY27 will be reflective of this.
Kaustav Bubna
Okay, great. Great. Thank you so much. Thank you.
Gaurav Sekhri
Thanks.
operator
Thank you. A reminder to all participants. You may press stand one to ask a question. The next question comes from the line of Sankal Patil, an individual investor. Please go ahead.
Unidentified Participant
Yes, sir. Am I audible?
Gaurav Sekhri
Yes.
Aditya Brij Sekhri
Yes.
Gaurav Sekhri
Please go ahead.
Unidentified Participant
Yeah. Sir, I want to ask question regarding your product mix. Our competitor is having a product which is going very well at price range of 1500-1200. So are there any plans to bring products in this range?
Gaurav Sekhri
So I don’t. I cannot comment on our competitor. What I can tell you is that we have a fantastic product offering in this range under the brand range master selection which we have only about a year ago rebranded it and upgraded the appearance label, bottle, even the liquid and that is seeing excellent traction. We are looking to expand that range. And yes, it is a very interesting price point. I think Indian consumers are generally very happy with this price point. So this is a focus area for us as well.
Unidentified Participant
Okay, that answers my question. Thank you.
Gaurav Sekhri
Thank you.
operator
Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to the management for their closing remarks.
Gaurav Sekhri
This is Gaurav Sekri again on behalf of Fatelli team. To everyone who joined the call today, I would like to express my thanks. We greatly appreciate your interest in our company and you sparing your valuable time to be with us today. Have a lovely afternoon and look forward to speaking to you again soon. Thank you.
operator
Thank you, sir. Ladies and gentlemen, on behalf of Goindia advisers, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.