Sula Vineyards Ltd (NSE: SULA) Q1 2026 Earnings Call dated Aug. 08, 2025
Corporate Participants:
Unidentified Speaker
Abhishek Kapoor — Chief Financial Officer
Rajeev Samant — Chief Executive Officer
Mandar Kapse — Head of Investor Relations
Analysts:
Unidentified Participant
Siddhant Dand — Analyst
Chirag Kinger — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call hosted by Sula Vineyards Limited. As a reminder, all participant lines will be in the Listen no need mode and. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on a touchstone phone. I now hand the conference over to Mr. Mandar Kapse, head of investor relations at Sula. Thank you. And over to you, Mr. Kapse.
Mandar Kapse — Head of Investor Relations
Yeah. Thank you. Zipu. Good afternoon everyone. On behalf of the management team at Sula, I would like to welcome you all to the Q1 FY26 earnings con call. Today. On the call from the management team, we have with US founder and CEO Mr. Rajiv Sanam and CFO Mr. Abhishek Kapoor. They will take us through the Q1 performance and answer your questions. As always, we’ll kick off today’s call with Rajiv sharing his thoughts on the operating environment and our Q1 business performance. This will be followed by Abhishek taking us through the financial highlights of the quarter post which we’ll open the forum.
For Q and A. Before we proceed, I’d like to draw your attention to the Safe harbor statement regarding the forward looking statements. Please note that various factors may cause actual outcomes to differ materially from those projected. With that, I now invite Rajiv to commence today’s call.
Rajeev Samant — Chief Executive Officer
Thank you, Mandar. Good afternoon everyone. And thank you all for joining us today for Sula’s Q1 FY26 earnings conference call. I hope all of you have had the opportunity to go through our Q1 press release and presentation that we have put up on the exchanges discussing our performance in Q1. Our own brand’s performance was impacted by two major factors.
First is the softness in urban demand which continued to persist. And second, towards the end of the quarter we were also impacted by the temporary disruption in wine placement in Maharashtra, our most important market following the announcement of the excise duty hike on spirits. To add more context to this latter point, post the duty hike announcement, distributors substantially front loaded spirit purchases to take advantage of the pre or revised prices stock. This shift in focus led to a significant reduction in wine offtake during the last two weeks of June in Maharashtra. Now June is our highest grossing month in Q1.
And Maharashtra of course as you all know is by far our largest state market. And so this factor definitely had a notable impact on our Q1 sales. There is likely to be some impact of this in July as well. But going forward we see this policy announcement as a positive for SULA and the wine industry in general as wine will become relatively more competitive and attractive to consumers in Maharashtra. Our economy and popular brands stand to gain more as the biggest duty hike impact is on the more economical spirit brands. Moving on Apart from these two factors, we also had a onetime gain of 10.4 crores on account of the WIPs unwinding in Q1 last year and that has distorted the comparatives this quarter.
Adjusted for this one time gain, our revenue in Q1 stood fairly flat on a YOY basis. Further, despite the near term headwinds, SULA gained market share in the last fiscal year FY25 and we expect to have gained market share in Q1 this year as well, going by the early industry data that has come in for some of the key corporation markets. Talking about our portfolio mix, our elite and premium wines continued to perform better than average and the share of elite and premium stood at a healthy level of 75% during the quarter. Our elite portfolio in particular saw very healthy growth led by the Source and Rasa range.
The Source continues to be a standout performer for us and in Q1 the brand recorded robust double digit growth. Given the resounding success of the Source, one of our main priorities this year is to expand its national footprint by rolling out the Source wines with top priority across the country. Turning over to wine tourism now, I’m pleased to share that FY26 started on a strong note. Our wine tourism business grew strongly by over 20% in Q1. This growth was driven by solid all round performance as we saw a healthy increase in footfalls and record Q1 resort occupancy and spend per guest.
Our resort occupancy for Q1 stood at 82% up significantly versus 70% in the previous year while the spend per guest at our wine tourism facilities increased by 6%. Improving spend per guest continues to be a key focus area for us and we are constantly working towards providing an elevated visitor experience to drive this important KPI. In another positive development, the much awaited Mumbai Nashik section of the Samruddy highway is now open. It shortens the drive time between Mumbai and Nasik by 45 minutes thus materially improving accessibility for a large section of our visitors. Our expansion plans in wine tourism are progressing well and we have a host of new openings coming up in Q2.
The most significant of our upcoming expansion plans is the new 30 key resort coming up near our York Winery which will be known as The Haven by Sula the new resort is slated to open in time, well in time for this festive season and will expand our room capacity by around 30% to 134 keys. Also, very importantly, this will be our first resort to have much needed convention facilities. We also launched our dinner, tasting room and bottle shop at our ND Wines facility just last month. This facility is strategically located less than 50 km from the Gujarat border and will offer visitors wine tastings and vineyard tours.
We are also opening a beautiful new tasting room with a spectacular view at our Domain Sula facility in Karnataka in Q2. We are also expanding the restaurant capacity there. Domain Sula sees over 30,000 visitors annually and so having a tasting room here is the natural next step in enhancing the guest experience. All in all, with these exciting expansions coming on stream and the opening of the Samruddy highway section enhancing accessibility, the outlook for wine tourism remains robust for the remainder of FY26. Moving on now on the innovation front, we are thrilled to launch our latest wine, the Sula Muscat Blanc, a new pioneering wine from the Sula stable.
This is the latest in a string of elite and premium launches from Sula and follows on from our successful launch of the Sula Merlot less than a year ago. The Sula Muscat block is India’s first low alcohol still Muscat wine with just 7.5% ABV. It will be our second launch based on the Muscat Grape varietal after the Sauce Moscato. The Sauce Moscato, by the way was our fastest wine to hit 10,000 cases after launch and so we have high hopes for Muscat Blanc as well. We have strategically priced the new wine very attractively at an MRP of INR875 per bottle in Maharashtra.
Muscat Blanc will be part of the iconic original Sula Classics range, thus strengthening our premium portfolio. It will be initially available. It is already available in Maharashtra with Karnataka to follow in the coming months. Moving forward, we have a couple more exciting product launches coming up soon before this festive season, so watch out for those we strengthened our CST portfolio in March by introducing four additional labels from our Elite portfolio, taking the total number of CST listings to nine labels. I’m pleased to say that the newly listed wines are now widely available in CST canteen stores across the country and we look forward to seeing solid sales growth in CST this year with our expanded portfolio.
Overall, Looking ahead, while the year has begun on a challenging note, we remain firmly focused to deliver healthy growth in operating profit for the rest of FY26. With that, I would like to call on our CFO Abhishek Kapoor to take you through our financial performance in greater detail. Over to you Abhishek. Thank you Rajiv.
Abhishek Kapoor — Chief Financial Officer
Good evening everyone. Following Rajiv’s overview of our business performance and strategic initiative, I will now take you through the financial highlights for the first quarter of fiscal 2026. Revenue for quarter one stood steady at 118 crores after adjusting for the one time gain of 10.5 crore recognized in quarter one of last year on account of unwinding of WIPAS. Our own brand portfolio faced short term pressure during the quarter impacted by two key factors, a continued softness in urban demand and a temporary disruption in wine placement in the month of June in Maharashtra following the excise duty hike announcement on spirits.
However, as Rajiv highlighted, we see the excise hike as a structurally positive development for SULA and the broader wine industry, improving wines relative appeal versus Spirit in the longer term. Excluding the WIPS gain from prior year, our elite and premium portfolio grew modestly by 1% despite a challenging environment. As a result, the contribution of elite and premium buying increased by over 300 basis points to 75% of our own brand revenue, up 71% in quarter one. Last year our major elite brands, the Source, Rasa and Dindori saw positive momentum, particularly the Source, which continues to deliver strong double digit growth and now contributes nearly 10% to our own brand revenue.
From a geographical perspective, despite overall tippet urban demand, several key states including West Bengal, Goa, UP and Rajasthan posted healthy double digit growth. Turning to wine tourism, the business delivered another quarter of healthy double digit growth with improvement across all key metrics, footfall, resort occupancy and spend projects. Our D2T wine sales from bottle shops at our wine tourism properties grew by 11% yoy to 9 crores. This strong performance underlines the strength of our customer engagement and gives us confidence that as demand normalizes, we should see broader growth across key markets. As mentioned earlier, we are set to launch our third resort, the Haven Bai Sula near the York Winery.
As Rajiv already mentioned, this like beyond, Bai Sula is being developed under an asset life model with land and capex funded by a third party and SULA managing operations on a fixed rent basis. Looking ahead, we remain optimistic about the growth trajectory of wine tourism. New capital capacity additions in quarter two and enhanced connectivity to Samrudi highway between Mumbai and Nasik will further strengthen this vertical. On the profitability front, our operating performance in quarter one was primarily impacted by a 20% plus increase in COGS. This increase was driven by a change in the wine sourcing model for our wine tourism business.
As shared earlier, in quarter three of financial year 2025 we transitioned from intra group sourcing to procuring wine from a third party distributor. This change being non comparable on a Y o wide basis resulted in an increase of INR 6 crore in traded goods purchased leading to a 450 basis point compression in gross margin and a corresponding impact on ebitda. Adjusting for this one off, our gross margin remains broadly in line with last year at around 80%. This is a temporary impact and will continue into quarter to a much lesser extent from quarter three onwards this effect will normalize due to a comparable base.
In parallel, we have implemented initiatives to lower raw material costs and improve manufacturing efficiencies. The benefits of these actions are not yet reflected in quarter one due to carryover of relative higher cost liquid inventory from last year. As this inventory is utilized, we expect to see a positive impact on gross margin in balance half of the year. On the operating cost front we have made meaningful progress. Actions initiated in quarter four of financial year 2025 have resulted in a 1% YoY reduction in Q1 operating expenses. Interest cost for the quarter was up 5% due to a marginal increase in average debt.
Nevertheless, our debt to EBITDA remains healthy at around 2 times to our trading. 12 month EBITDA depreciation is higher Y o Y driven by elevated capex over last three years. However, I want to emphasize that our major capital investments are now behind us. We expect capex for FY26 and year onwards to moderate to half of this to around 35 crore annually in the last three years. It may be noted we have been doing capex to the extent of 50 to 60 crores per annum. Low capex along with reduced inventory level should help contain any further interest in debt Increase in debt this Fiscal update on WIPs our WIPs outstanding at the end of quarter one stood at around 70 crore compared to around 72 crore at the end of March 2025.
During the quarter we accrued around 9.5 crore of WIPs accrual and we also received a 13 crore payout from the government. Looking ahead, we expect an improvement of couple hundred basis points in operating margins in second half of this financial year which is driven by no capping constraint on WICS accrual. It may please be noted that last year in second half of the year we lost around 6 crore of revenue which flowed directly to the bottom line. New wine tourism openings, as Tajeev already mentioned, and realization of cost efficiencies in manufacturing and operating expenses. We are taking decisive steps to improve profitability, grow wine tourism and enhance shareholder value while staying true to our long term vision of delivering sustainable and profitable growth.
With this, I request to open the session for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two 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 Chirag Kinger with clsa. Please go ahead.
Chirag Kinger
Yeah. Hi, good evening. Thank you for taking my question. So my first question was on the demand environment pre stocking of the spirits due to the price hike, sorry, duty hike in Maharashtra. So just wanted to understand what was the run rate of growth looking like in the months of April and June. That’s my first question. And then secondly, in the month of April and May. And then secondly, just on the change in wine sourcing model for the wine tourism business, can you talk about what were the key driving factors behind this change? And yeah, those would be my two questions.
Thank you.
Abhishek Kapoor
Thanks for your question. Cherad. So as we mentioned that June being the biggest month in the first quarter of the financial year. There was a. Significant impact on account of this policy change which increased the duties on spirits. Since before the official announcement there was already an information in the market and that created the trade to kind of pick up a lot of stock. So this impacted significantly in the last fortnight of the quarter. Now before that we could see some of the green shoot as we could see the hospital, our wine tourism. The wine sales from the wine tourism were picking up right from the start of the financial year, from the month of April itself. So we could see that the demand was building up in case this disruption due to the duties was not there.
We could see a growth in the state of Maharashtra which would have contributed to the overall numbers on our own brand portfolio.
Chirag Kinger
All right, thank you. And then just on the second question on the wine sourcing model, what were the driving factors for that?
Abhishek Kapoor
Sure. So Chirag, we were doing. So we have three legal entities and for sourcing of the wine for our wine tourism business, we. We were holding the licenses amidst these entities. But there were certain challenges and with three entities. It was difficult to manage in terms of the supply chain. And that’s why the decision was taken to source the wines from a third party distributor. As we informed that in quarter three of the last financial year that this is not going to have any impact in terms of the gross margins because it’s neutral. Ultimately it’s in terms of the charges which we pay for towards this is only minuscule handling charges.
But because this is an incomparable base as far as quarter one is concerned, we are seeing a huge impact on account of disappearing in cogs for the wines which we purchased during the quarter for our wine tourism operations. So as stated earlier, from Q3 onwards this will get completely normalized and we will not see any impact on account of this change model.
Chirag Kinger
Understood? Very clear. Thank you.
operator
Thank you. A reminder to all participants, if you would wish to ask a question, please press Star and one on a Touchstone telephone. Thank you. Our next question comes from Shitij Verma from Rest Assured Wealth Advisors. Please go ahead. Your line has been unmuted. Please go ahead with your question.
Abhishek Kapoor
May we move on to the next.
operator
One moment, sir, please. Thank you. Our next question comes from Sudan, from Goodwill. Please go ahead.
Siddhant Dand
Yeah, hi. My question was regarding the EU terrorist. In a recent interview you had mentioned. That you know some level of tariffs. So you know, what kind of levels will it be? Are you expecting and you expect it to be in the price bracket like. Australia, the tariff reduction?
Rajeev Samant
I. I will take that one. At this point, we don’t see any further tariff reductions as being imminent. The EU agreement is taking its time and we have received assurances from our government that at the end of the day, the farmers are foremost in the consideration of the government when negotiating these FTAs. Having said that, we are definitely vigilant and getting ready for the case that duties can come down further. I think that nobody is under any misunderstanding or misapprehension that the high tariffs are going to last forever and the MIP is going to stay where it is forever.
So it is a possibility that the MIP, which right now stands at US$5 a bottle Cif with Australia, part one could come down at this point. With Australia, the duty reduction has meant an impact on wines coming down to around 3500 rupees MRP in the Maharashtra market. So there is still a significant gap between that and our highest priced wine, which would be our Ratra Cabernet Sauvignon, which is currently at 2000 in the Maharashtra market. In fact, there are already a lot of imported wines that we compete against directly, which are at say 1500 to 2000 rupees MRP in the Maharashtra market.
So this 3500 rupee could come down maybe to 3000, maybe a bit lower than that. But there is still some cushion, fair amount of cushion between the impact in the case of some reduction and the price, our highest price product in the market.
Siddhant Dand
Okay, my second question was regarding fire competition in Hureika.
Rajeev Samant
I. Sorry, your question is. It was not clear. Please could you repeat. You said Horeka in competition and Horeca within here after that. Yeah.
operator
Sorry to interrupt you, sir, your voice is breaking. Sir, can you please use your handset?
Rajeev Samant
I. What I heard was, is the discounting by our competition very severe?
Siddhant Dand
Yes,
Rajeev Samant
unfortunately this has been a very unfortunate characteristic of the Indian wine market over the last few years. Indiscriminate and unsustainable and I would say straight off loss making discounting by some of our competitors. SULA has always tried to stay a bit above the fray. But of course, at the end of the day we have to compete in the market. And the place where it probably hits the most is in the Horeca segment. In the retail segment, it’s very clear that the consumer will get what they want.
At the end of the day, no retailer who knows their business is going to try to deny their consumers their favorite brands. So SULA is always well ahead in this market where the consumer gets to choose. But in the Horeca market, it’s very different because the buyer, you know, the selection is generally narrower. Once you’re inside the restaurant and sitting down at the table, you cannot really ask for another wine and ask them to go get it. And hence discounts do come into play. And yes, there is some pretty brutal discounting going on. I would use the acronym bogo, which is buy one, get one, which seems to be the reigning mantra right now for a lot of our competition.
And sometimes it goes even further than that. So. So it does impact. However, having said that, I want to point out the source in particular, which many restauranteurs, hoteliers, they love this wine. They love the price point. It’s the sweet spot. Above 1000 rupees MRP, but below 1500 rupees. And that wine shows no signs of slowing down and is making very impressive and significant listing gains. Even in Horeca. We will continue trying to hold the line in terms of discounting. It’s not always easy. Our sales force is always complaining. But you know, SULA tries to stay above the fray for as much as is possible.
Siddhant Dand
Wonderful, wonderful. Thank you so much.
operator
Thank you. Our next question comes from the line of Shitij Verma from Rest Assured Wealth Advisors. Please go ahead.
Unidentified Participant
Hi, am I audible, sir?
operator
Yes, please go ahead.
Unidentified Participant
Yeah, I. My query. Thanks for having me on the call. My query was regarding the scalability of our hospitality projects. We’ve done good job scaling in the Nashik region, but just to throw an idea out there, suppose there’s a developer saying Goa or say somewhere in Mangalore. I’m just giving random examples. Who wants to build a property and give it to Sula to manage and maybe not an actual wine yet and simulate a wine yard and give the experience as such. Like how do you see this foreign five star hotel brands. They ask the developer to build and then they do the management.
Is this possible or having a natural vineyard is a big precursor for this?
Rajeev Samant
It’s a very good question. I would say that we would always prefer to have a vineyard in front, but it is not by any means mandatory because our resorts by Gangapur lake, though they are of course very much in Nasik and they are on the same road as Sula. Beyond in particular, which is doing amazingly well, does not have a vineyard in front of it, it has a lake in front of it. We have a couple pillars for our wine tourism business. The first is that we like to be asset light. So if we get a good proposal from a developer, we are always open.
That’s the first thing. The second thing, what we want is a wine friendly resort. So having the vineyard in front of it is not necessarily, you know, it’s not make or break. But however, if we are to manage it, it would be that the consumer would find, you know, a great selection of all our wines at a price close to the mrp. That I think is what. And then and properly presented in the right way, you know, with the right glassware, with the right accoutrements, all of that is what is most important for us. So we are not at this point planning to expand further as a really as a hotel management company.
It has to be tied to the greater objective of promoting the cause and consumption of our wine. Thank you.
Siddhant Dand
Yes, sir. I agree that we don’t maybe want to be a primary hospitality company, but as you are aware, so we are the pioneers in trying to get wine consumption increase as a percentage of share of throat. So maybe, you know, we will have to kind of take the ownership in this initially and then let the wine business outgrow because most of the people who have become Wine converts. You know, the first stage was actually a stay at the resort. So we’ve seen a very positive trend there. And the margin sold on the resort is more so if we can, you know, in future we can also actively look, maybe not for many resorts but just one or two in diverse geographies also.
It will help our case in Pentagon. It’s just a suggestion. I leave it up to the wisdom of the management. And my last query sir was when we go abroad to Indian restaurants across there are Indian restaurants and even the foreigners love the Indian cuisine. But in many menus you don’t see Indian wine on the menu. You see the Indian restaurant selling Italian wine. So is this challenging to activate restaurants abroad or how is the thing there?
Rajeev Samant
Makul, I’ll answer your first question first. We are open right now. We have a pipeline. We are not a big company that can manage multiple projects at once. So we have a robust pipeline right now. But I would say that we do get offers, proposals and we are always open. So your point is very well taken about why not having for instance a resort, a wine friendly resort in say Goa or Mangalore, you referred to both of those places actually would work quite well for us because wine prices there are still relatively lower and more benign compared to the rest of the country.
In some states you have the issue of taxes being so high that it doesn’t always make sense. So one of the things is that the states where you can still make a decent margin even if you sell the wine at mrp because obviously there are a lot of associated costs, as hoteliers well know, with putting that, you know, they recoup a lot of the costs and the profits from alcoholic beverages. So that would be something that would be very important. But you know, Mangalore stands out because Karnataka is very benign in terms of winning wine taxation.
In terms of your second question of Indian wines not being on Indian restaurant menus worldwide, yes, this is an issue. It’s not so easy to get distribution. And unfortunately the truth of the matter is that the last couple of years has seen a challenging environment for wines. So you have pretty cutthroat competition in the global wine market. And you have countries where they have to export or perish. You have countries with very large production like Chile, Australia, New Zealand, where the local consumption doesn’t come anywhere close to the, to the production. And so these countries are very aggressive.
The export market is not very remunerative. And I have always said that we would prefer to sell at this point. If you ask me, we would prefer to sell much more wine in Mangalore than in Manchester.
Unidentified Participant
Thank you. Just one last query from my side. One last a countercyclical question. Suppose these FTAs go through and there is more availability of wine from grown abroad. Do you think this might actually increase the wine penetration in the country and may actually benefit us by expanding the market? As you have many people investing in educating the wine market and ultimately our product will thrive on its own merit. So actually it might be a blessing in disguise for us. Does the management look at it that way?
Rajeev Samant
So a lot of people do put forward this theory and there is definitely some truth to that theory. So I would say that if you have a situation where there is no minimum import price, you know that the government did away with minimum import price altogether. That I think would be very difficult for our industry because costs are higher. But if you just have a situation where the minimum import price comes down a bit, as is the most likely scenario. Absolutely. We do see more market development activities being carried out by some of the global wine brands, which would lead to an expansion in the wine market.
Then it’s going to be up to each individual producer and company to hold their market share within that market. But I would say that a growing market with us holding our market share would still be a pretty good outcome and SULA has the ammunition for that more than anyone else. Because of our thriving wine tourism business, which dwarfs all the rest of our competitors put together, we are more than 10x all our competitors put together in wine tourism and an extremely iconic number of venues which is going to expand even further. With the expansions and the conference facilities which I’m most excited about because that’s going to allow us to have more weddings, corporate conferences and all of these.
We put in a clause that if you’re going to have a wedding or a conference at sula, you have to buy a certain amount of wine. That’s the way that we do it. So Suna would, I do believe, stand strong. But you are. Yours is a very pertinent and relevant question. Definitely market development would happen.
operator
Thank you ladies and gentlemen, a reminder to all the participants, if you would like to ask a question, please press star and 1. Our next question comes from Palak Shah from Entrach Family office. Please go ahead.
Unidentified Participant
Thank you so much for taking my question. Hope I am audible.
Unidentified Speaker
Yes.
Unidentified Participant
Just wanted to check, given the revised procurement cycle for the wine tourism linked wines, what would be our normative gross margins going forward?
Abhishek Kapoor
So as I stated earlier, our normalized gross margins which were in the range of around 80%. They don’t get impacted due to this change in model once it has a comparable base, so no impact per se on its own. It’s only because for quarter one they were not the right comparable. That’s why it is showing up. Even if I look at sequential basis, right, you had a material fluctuation in the margins going from almost 83% to 70 to 76%, 74%.
Unidentified Participant
So just want to understand even the sequential margin variation that we have because before 2024 March, there was more normalized margins of when we were doing 77 to 80% margins. But right now the fluctuation is quite material.
Abhishek Kapoor
So yes. See, the key reason quarter on quarter for these loss margin fluctuations is largely on account of the mix between our elite premium and economy popular wines. So as this mix fluctuates, so if you recall, our all time high mix was close to around 78% of elite and premium mines. So as this mix changes, we see a fluctuation in gross margins. But firstly, on its own it doesn’t have any impact if we were to have a stable mix between the categories.
Unidentified Participant
And secondly, earlier we had this thought that when Jacob’s Creep was sold, we would have somewhat of moderation in competition. Because earlier porno used to force retailers to buy wine if they wanted the spirit side of the business. With this change in hands already concluded by December, six months already passed by. How are we looking at this competitive scenario? Is there some ease of competition?
Rajeev Samant
So to the best of our knowledge, there is a continued distribution agreement that Polo would continue to distribute Jacobs Creek in those markets where the buyer, the new buyer, doesn’t have a robust infrastructure and distribution network. Already we are not privy to the finer details, but we do believe that JC will continue to be as per what we know. We may be wrong, but we do believe that JC will continue to be distributed by PRI for some more time, so that distribution continues to be at this point point in the hands of pri. Now, how much the focus will be moving forward, one is not sure because you know, when a company lets go of a brand, then obviously focus and priorities change.
However, one should remember that there would be a certain amount of stock on hand and they would continue to try to be competitive, aggressive and competitive in the market, even if it’s relatively different. But so the might of PRI continues to be behind JC for the time being.
Unidentified Participant
And this lastly, on the revenue growth side, it’s been almost in five quarters since we had a subpar growth. Even where our penetrations are as in your thought process and in my management strategy. When do we expect to go back to double digit growth? If nothing else, at least a low double digit growth, which should be the case given up by integrations today.
Rajeev Samant
One would hope, given the penetration, the minuscule penetration of wine, that those days return. However, I must say that the last year has been difficult and so I would not like to give any guidance for the future, except that we are working hard to come back to growth. Great.
Unidentified Participant
Thank you so much for the answers, Rajiv, and all the very best.
Rajeev Samant
Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Mandar Kapse for closing comments.
Mandar Kapse
Thank you. Thanks everyone for joining once again. Please do reach out to us if you have any further questions on the investor relationship. Email ID Good evening and have a good weekend everyone.
operator
Thank you on behalf of Sula Vineyards Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.