Indian Wine Industry Looking to Rebound in FY26 After Previous Year’s Slowdown 

The Indian wine industry is all set to make a comeback with projections of a normalised domestic macro environment. According to the Annual Report of Sula Vineyards Ltd., one of the leading wine producers in the country, urban consumption experienced a critical slowdown in the last year.  

Other regulatory and market disruptions also contributed to the slowdown. However, the projections are quite positive, and the sector hopes to make a comeback.  

FY25 Slowdown & FY26 Outlook 

Wine is considered a predominantly urban drink, so a reduction in consumption in the top cities led to a slowdown in FY25. Demand was also affected by regulatory changes and election-related disruptions, particularly in Maharashtra. 

As Sula’s annual report suggested, this year marks a demand reset. Industry expectations are upbeat for FY26, and the industry is confident that a stable macroeconomic environment will reignite consumption. 

Sula’s Record Performance 

Despite the slowdown, the country’s leading wine manufacturer reported robust financials. The company achieved record-breaking worldwide revenue in FY25, reaching ₹619.4 crore. CEO Rajeev Samant highlighted the company’s leadership in India, emphasising a return to normalcy and projecting improved consumer traction in the upcoming fiscal. 

Growth Strategies and Market Potential 

Sula Vineyards is banking on innovation, increased cellar capacity (targeting 19.2 million litres by FY26), and wine tourism to boost earnings. As India’s US$150–200 million wine market grows at 15% CAGR per capita, consumption remains low (under 50 ml), signalling an untapped opportunity. Encouragingly, domestic sales are rising outside key states, and tourism at Nashik resorts continues its upward trend. 

Despite the slowdown in the previous year, Sula managed to achieve some impressive numbers. With the macroeconomic factors turning in favour of the industry, it is anticipated that the current financial year shall be even more fruitful for Sula and other players in the sector. 

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