Fratelli Vineyards Ltd (BOM:541741) Q3 2026 Earnings Call Highlights: Strong Luxury Segment …

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Wed, February 18, 2026 at 10:04 AM GMT+9 4 min read

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**Q3 FY26 Revenue:** INR65 crore, reflecting an 8% growth compared to Q3 FY25.

**Luxury Segment Revenue Growth:** 13% in Q3 FY26; 20% for the 9-month period.

**J'NOON Brand Growth:** 34% growth in Q3; 53% growth year-to-date.

**Sette Brand Growth:** 5% growth in Q3; approximately 10% growth year-to-date.

**Premium and Above Category Contribution:** 73% of revenue for the 9-month period.

**Gross Profit for Q3 FY26:** INR48.8 crore, up from INR45 crore in Q3 FY25.

**Gross Margin:** 76% for Q3 FY26, broadly stable year-on-year.

**EBITDA for Q3 FY26:** INR5.5 crore, up from INR1.6 crore in Q3 FY25; margins improved to 8.6%.

**Profit Before Tax (PBT) for Q3 FY26:** Positive INR0.1 crore compared to a loss in the previous year.

**9-Month FY26 Revenue:** Approximately INR147 crore, marginally lower year-on-year.

**9-Month Gross Margin:** 78%, slightly lower year-on-year.

**9-Month EBITDA:** INR4.7 crore.

**CapEx for 9 Months FY26:** Approximately INR10 crore, primarily for vineyards infrastructure and plant and machinery.

**RTD Distribution:** Expanded to 18 states with approximately 7,000 outlets.

**International Presence:** Expanded to 13 countries; exports doubled compared to the previous year.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Fratelli Vineyards Ltd (BOM:541741) recorded a healthy growth in revenue and improvement in margins for Q3 FY26, supported by an evolving product mix and strong performance in the luxury segment.

The luxury segment delivered a revenue growth of 13% in Q3 and 20% for the 9-month period, with flagship brands like J'NOON and Sette showing strong growth.

The company launched Fratelli Brut, strengthening its presence in the super premium sparkling wine segment, aligning with its premiumization strategy.

Fratelli's ready-to-drink (RTD) portfolio, particularly Shotgun, is gaining traction, expanding to 18 states and expected to reach 100,000 cases by year-end.

International presence has expanded to 13 countries, with exports doubling compared to the previous year.

Negative Points

The company faced regulatory disruptions in key markets like Maharashtra, Uttarakhand, and Telangana, impacting sales in the first half of FY26.

Gross margins for the nine-month period slightly decreased year-on-year due to product mix variations.

Depreciation and finance costs increased due to new asset commissioning and borrowings for capacity expansion.

The India-EU free trade agreement could increase competition from European wines, potentially impacting the premium segment.

Fratelli Vineyards Ltd (BOM:541741) took a one-time write-off of approximately INR5 crore to settle a long overdue receivable, impacting financials.

 






Story Continues  

Q & A Highlights

Q: How significant is the Telangana market for Fratelli Vineyards, and what impact did the license expiry have? A: Aditya Sekhri, Director, mentioned that Telangana contributes approximately INR15 crore annually, accounting for about 11% of the company’s revenue. Despite challenges, it remains a significant market for Fratelli.

Q: What is the expected impact of the India-EU Free Trade Agreement on Fratelli’s premium wine segment? A: Gaurav Sekhri, Chairman & Managing Director, explained that while European wines might become more competitive, Fratelli’s premium brands like Sette and J’NOON, which are priced higher, have shown strong growth and consumer acceptance, mitigating potential impacts.

Q: Can you explain the gap between Fratelli’s gross profit margins and EBITDA? A: Gaurav Sekhri highlighted that higher brand-building investments and promotional expenses contribute to the gap. These are expected to stabilize as the brand matures.

Q: What is Fratelli’s strategy for the newly launched Fratelli Brut and F7 Port Wine? A: Aditya Sekhri stated that Fratelli Brut targets the super-premium segment with a price point of INR1,500, while F7 Port Wine, priced at INR280, aims to penetrate Tier 2 and Tier 3 cities.

Q: How does Fratelli plan to navigate the competitive landscape with the potential influx of European wines? A: Aditya Sekhri noted that while the market will become more competitive, Fratelli’s strong market share and growth in the luxury segment position it well to compete effectively.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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