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Summary of earnings call for Fratelli Vineyards Ltd published on 04 Jun, 2026

Eavesdropper Sharma 🤖June 4, 2026

Fratelli Vineyards Limited
Q4 FY26
Call date · June 02, 2026

1 · Management Commentary

Key Positives

  • Q4 FY26 revenue grew 13% YoY to INR36 crores, with positive EBITDA of INR1.06 crores.
  • Luxury wine portfolio sales grew 15% YoY; flagship brand J’NOON up 44%.
  • RTD brand Shotgun sold ~100,000 cases in its first year, present in 18 states; RTD revenue at INR18 crores.
  • Export revenue doubled; international footprint expanded to 15 countries.
  • Gross margin improved to 79% in Q4 (vs 73% YoY); full-year gross margin at 79%.
  • CSD channel contributed 8% of revenue, with new approvals for Merlot Wine and NOI Sparkling.

Key Negatives

  • Full-year FY26 revenue largely flat at INR184 crores (1% YoY growth) due to regulatory disruptions in key markets (Maharashtra, Telangana, Uttarakhand, Delhi) and excise policy changes.
  • Premium portfolio revenue declined 16% YoY, offset by growth in select states.

Forward Guidance

  • Capex plans: INR9 crores earmarked for FY27 routine/strategic capex; major capex cycle completed; hospitality project (INR70–80 crores) deferred, under review for FY28.
  • New products/segments: 3 new RTD variants launching in Q1 FY27; Fratelli Brut (super premium sparkling) to expand to 14 more states; Sette 15th anniversary edition to expand to 7 more states.
  • Expected client wins/losses: Shotgun RTD to launch in Chhattisgarh, Karnataka, Telangana in H1 FY27; CSD channel to see new product launches.
  • Revenue/margin outlook: Targeting 30% revenue growth in FY27 (~INR240 crores), with PAT breakeven expected; gross margin to remain 76–80% as RTD scales.
  • Other strategic initiatives: Continued premiumization, focus on luxury/super premium, expanding RTD and export businesses, leveraging data analytics for distribution.

2 · Q&A Highlights

Q 1 (Composite): What is the roadmap and timeline for achieving PAT profitability?
A (Management):
• Targeting 30% revenue growth in FY27 (~INR240 crores), which will achieve PAT breakeven.
• Operating efficiencies and scale to drive profitability.

Q 2 (Composite): What is the addressable market and growth outlook for RTD and wine-in-a-can in India?
A (Management):
• RTD wine market size is INR500–600 crores, growing at 25% YoY; Fratelli aims to double RTD sales in FY27 to 200,000 cases.
• RTD segment unaffected by FTAs; focus on continued investment.

Q 3 (Composite): What is Fratelli’s market share in premium/luxury wine and HoReCa segments?
A (Management):
• 30% market share in premium, >50% in domestic luxury wine, ~40% in HoReCa, 45% in CSD, >90% in wine-in-a-can (civil markets).

Q 4 (Composite): What are the key product launches and innovation plans for FY27?
A (Management):
• 3 new RTD variants in Q1 FY27; Fratelli Brut and other premium products to expand to more states; continued focus on premiumization and new varietals.

Q 5 (Composite): What is the capex outlook and funding plan for growth and hospitality?
A (Management):
• FY27 capex of INR6–10 crores; hospitality project (INR70–80 crores) deferred to FY28; no major capex needed for core business; funding options open if compelling opportunities arise.

Q 6 (Composite): How will margins evolve with scale, RTD mix, and FTAs?
A (Management):
• Gross margin expected at 76–80% as RTD (70% margin) grows; luxury/super premium growth supports margin resilience; FTAs expected to have minimal impact.

Q 7 (Composite): What are the marketing spend plans and distribution expansion targets?
A (Management):
• Marketing spend at 7% of revenue (10%+ for Shotgun in early years); Shotgun to expand from 9,000 to 15,000+ outlets in FY27; strong focus on Tier 2/3 cities and data-driven distribution.

Q 8 (Composite): What is the company’s long-term growth aspiration and key drivers?
A (Management):
• Targeting INR500 crores revenue by 2030 (20% CAGR); growth to be driven by premiumization, RTD, new product launches, and distribution expansion.

3 · Other Key Numbers

  • Q4 FY26 net revenue: INR36 crores (Q4 FY25: INR32 crores)
  • Q4 FY26 gross profit: INR29 crores (Q4 FY25: INR23 crores)
  • Q4 FY26 gross margin: 79% (Q4 FY25: 73%)
  • Q4 FY26 EBITDA loss: INR3.7 crores (Q4 FY25: INR7 crores loss)
  • FY26 net revenue: INR184 crores (FY25: INR181 crores)
  • FY26 EBITDA: INR1 crore
  • FY26 capex: ~INR10 crores
  • FY27 planned capex: ~INR9 crores (routine/strategic)
  • Hospitality project: INR70–80 crores (planning stage)
  • RTD sales FY26: ~100,000 cases, INR18 crores revenue
  • RTD distribution: ~9,000 outlets (2,000 added in FY26); target 15,000+ in FY27
  • Employee benefit expenses: INR35–36 crores
  • Other expenses: INR85–86 crores
  • Sales/marketing team: ~200 people
  • CSD channel: 8% of revenue; 45% market share
  • Exports: doubled in FY26; present in 15 countries; target 5% of revenue from FY27
  • Premium & Above portfolio: >70% of revenue
  • Luxury category: >INR2,000 MRP; J’NOON up 44% YoY
  • Premium portfolio revenue: -16% YoY
  • Gross margin guidance: 76–80% (RTD at ~70%)
  • Marketing spend: 7% of revenue (10%+ for Shotgun in early years)
  • Net-net breakeven revenue: ~INR240 crores
  • RTD market size: INR500–600 crores; >1 million cases
  • Shotgun to launch in 3 new states in H1 FY27
  • Sette 15th anniversary edition: launched in 5 states, to expand to 7 more in FY27
  • Fratelli Brut: launched in 4 states, to expand to 14 more in FY27

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