Waterways Leisure Tourism (Cordelia Cruises) provides domestic ocean cruise services along with select international routes.It operates a cruise vessel, the ‘MV Empress‘, and since launch, over 7.30 lakh guests have sailed on the cruise vessel, covering more than 3.21 lakh nautical miles along the Indian coastline and surrounding islands as of March 2026.

‘MV Empress‘ offers an array of cabin options, including one chairman‘s suite, five suites, 63 mini suites, 416 ocean-view staterooms and 311 interior rooms.

Its cruise vessel primarily sails to domestic destinations such as Mumbai (Maharashtra), Goa, Kochi (Kerala), Chennai (Tamil Nadu), Lakshadweep, Visakhapatnam (Andhra Pradesh), and Puducherry. It also sails to international destinations including Hambantota, Trincomalee, and Jaffna (Sri Lanka) and has also sold cruise tickets for its first-time sail to destinations such as Phuket (Thailand), Singapore, Kuala Lumpur and Langkawi (Malaysia).

Cordelia Cruises currently offers 796 cabins across multiple categories, with dynamic pricing ranging from Rs 34164(interior rooms) to Rs 1,51,111(Chairman suite) per night.In FY25, Cordelia Cruises accounted for around 79% of India‘s cruise market by value.

Its itineraries are designed to showcase India’s coastal regions and cultural heritage, providing guests with an enriching travel experience and establishing itself as the go-to choice for luxury and cultural cruising.

As part of its expansion plans, the company intends to add two vessels, Norwegian Sky and Norwegian Sun, with guest capacities of 2,004 and 1,936, respectively by FY2028.

The company also plans to introduce new itineraries and strengthen onboard offerings through upgraded dining options, modernised cabins and international entertainment programmes. During the redevelopment of the Mumbai International Cruise Terminal, it developed and operated a temporary cruise terminal at Green Gate, Mumbai Port.

The overnight ocean and coastal cruise industry in India is estimated to be valued at Rs 890.5 crore in FY2025 and is expected to increase to Rs 1820 crore to Rs 2250 crore by FY2031 growing at a CAGR of approximately 20-25%.

Object of the offer

The IPO is entirely a fresh issue of shares worth Rs 585 crore, with no offer-for-sale (OFS) component. At the upper end of the price band, the company is expected to be valued at Rs 5,849.48 crore post listing.

The funds raised to the tune of Rs 480 crore will be used to make lease payments to the step-down subsidiary, Baycruise Shipping and Leasing (IFSC) Pvt Ltd. A portion will also be used for general corporate purposes.

Strengths

The company is pioneer in the ocean cruise tourism in India and is well positioned to capitalize on industry tailwinds by leveraging its existing cruise vessel, introducing new cruise vessels, and enhancing its service offerings to meet the growing demand for cruise experiences in India. Being the only domestic ocean cruise operator in India allows the company to play a pivotal role in shaping the cruise tourism sector.

India-focused cruise offering local cuisine, bars, and Bollywood entertainment.Its cruise experience is designed to cater to the preferences of Indian guests and international travellers visiting India, offering an immersive journey into India‘s rich culture, cuisine, and warm hospitality.

Guests have options to book their cabins either directly with the company through its website, mobile application and over the phone, or through third-party travel agents. Historically, a majority of the cabins have been booked directly with reflecting its guests’ trust and preference for its straightforward and efficient booking process. For FYs 2026, 2025 and 2024, the company directly sold 62.25%, 62.98%, 59.86% of the total cabins, respectively. Direct bookings reduce commission paid to travel agents, thereby improving margins. It also provides an additionalopportunity for direct contact with its guests, allowing the company to better understand their preferences, build stronger brand awarenessand deliver a more personalized experience.

Cordelia Cruises has outsourcedits key cruise operations to third-party partners for service delivery which enhances operational efficiency and scalability.

Thecompany is managed by a professional teamhavingexperience of over three decades in the cruiseand hospitalityindustry.

Weaknesses

The company is exposed to single asset concentration and operational risks as it has only one ship which it operates. Any disruption to the operations of this cruise vessel, whether due to mechanical failure, accidents, or other unforeseen events, could lead to operational disruptions that could have an adverse impact on business and cash flows of the company.

Cordelia Cruises has over 85% revenue dependence on cruise ticket sales as such any decline in sale of cruise ticket will impact the business.

Revenue remains susceptible to seasonality in the cruise business; and weather is also a dominant factor in this business. Furtherrevenue and operating margin are also susceptible to risks associated with cross-border tensions and global socio-economic and political risks.

The company operates as the vessel operating entity, while the vessel owning entity is Bay Cruise InvestmentInc. Any legal, financial, or regulatory issues faced by Bay Cruise Investment Inc. could indirectly impactoperations of the company.

Experienced negative cash flows from operating activities in FY2026 and FY2022. Any similar negative cash flows from operating activities in future will affect the financial condition.

In the consolidatedfinancial statements the auditorhas given reference of clause ii(b)and vii(a) from the CARO ofstandalone financial statements ofWaterways Leisure Tourismpertaining to sanction ofworking capital loan in excess oflimits and delay in deposit ofstatutory dues.

The company has acquired two new cruise vessels on lease and its inability to adhere to the terms of the lease agreements(including its inability to pay the lease rentals) could lead to the termination of agreements.

The company enters into related-party transactions, and there is no assurance that such transactions are always on the most favourable terms available.

Valuation

Consolidated sales were down by 1.8% to Rs 579.75 crore in FY2026. Decline in revenues was primarily on account of variation in passenger cruise days and onboard spending behaviour.Operating profit margin (OPM) contracted from 35.28% to 19.01%, leading to a 47.1% decrease in operating profit to Rs 110.23 crore. Other income inclined 2.4% to Rs 7.25 crore. Interest cost declined 77.3% to Rs 8.74 crore and depreciationcost declined by51.6% to Rs 62.99crore. PBTbefore EO stood at Rs 78.25crore down 31.4%.PBT after EO stood at Rs 78.25 crore as against Rs 189.58 crore in FY2025. Exceptional gain stood at Rs 75.59 crorein FY2025which was on account of on account of de-recognition of the lease impact on right of use of Rs 54.72 crore and lease liabilities and de-recognition of the lease impact on security deposit of Rs 20.87 crore. PAT stood at Rs 52.14 crore as against Rs 168.19 crore in FY2025.

The company allotted shares to various investors through private placement at a weighted average cost of Rs 10 per share during the past one year.

At the higher price band of Rs 808, the offer is made at a P/E of 112 times FY2026EPS (of Rs 7.2), EV/FY 2026 EBITDA of 54.08 times, and EV/ FY 2026 Sales of 10.28 times.

There is no comparable listed player in India.