India’s dominant ocean cruise operator — the company behind the “Cordelia” brand — hits the market with a Rs 585 crore fresh issue.
Waterways Leisure Tourism Ltd., one of the leading domestic ocean cruise operators in India, opens for subscription on June 23 with the issue closing on June 25. Incorporated in November 2020, the company operates a single cruise vessel, the ‘MV Empress’, and accounted for approximately 79% of the Indian cruise market in value terms in Fiscal 2025.
Notably, most brokerages have refrained from assigning a firm rating to the issue, with several taking a neutral, wait-and-watch stance given the company’s financial profile and single-vessel dependence.
What the Company Does
Waterways Leisure Tourism offers luxury cruises designed around Indian culture, cuisine, and hospitality, marketed under the “Cordelia” brand. Its vessel, the MV Empress, primarily sails domestic routes touching Mumbai, Goa, Kochi, Chennai, Lakshadweep, Visakhapatnam, and Puducherry, along with select international itineraries to Sri Lanka, Thailand, Singapore, and Malaysia.
Since launch, more than 730,000 guests have sailed on the vessel, which offers 796 cabins ranging from interior staterooms to a chairman’s suite, plus amenities including multiple dining venues, a casino, theatre, spa, and swimming pools.
The company runs an asset-light model — it operates the vessel while a separate entity owns it, and it outsources critical operations like food and beverage, crewing, and entertainment to third-party providers. A large share of bookings come directly through its own channels, which helps protect margins by reducing travel-agent commissions.
The company is positioning for growth around the government’s Cruise Bharat Mission, which aims to double cruise passenger traffic by 2029. It has entered time charter agreements for two additional vessels — ‘Norwegian Sky’ and ‘Norwegian Sun’ — to be introduced by Fiscal 2027 and 2028 respectively.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 23, 2026 |
| Issue Closes | June 25, 2026 |
| Listing Date | July 1, 2026 (BSE & NSE) |
| Price Band | Rs 769 – Rs 808 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 585 crore (entirely Fresh Issue) |
| Bid Lot | 18 shares and multiples thereof |
| Post-Issue Implied Market Cap | Rs 5,595 – 5,849 crore |
| QIB / NII / Retail Split | 75% / 15% / 10% |
| BRLM | Centrum Broking Limited |
| Registrar | MUFG Intime India Pvt. Ltd. |
Promoter shareholding declines from 99.27% pre-issue to 89.35% post-issue, with public float rising to 10.65%.
Objects of the Issue
The bulk of the fresh issue proceeds — around Rs 480 crore — will go towards deposit, advance lease rental, and monthly lease payments to its step-down subsidiary Baycruise Shipping and Leasing (IFSC) Pvt. Ltd. for the two new vessels. The balance will be used for general corporate purposes.
Financial Performance
| Particulars (Rs million) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from Operations | 4,440.6 | 5,906.1 | 5,797.5 |
| EBITDA | 1,111.5 | 2,154.6 | 1,174.8 |
| Profit / (Loss) Before Tax | (1,226.9) | 1,895.8 | 788.2 |
| Profit / (Loss) After Tax | (1,227.3) | 1,681.9 | 521.4 |
| Net Worth (as stated) | (1,180.7) | 327.8 | 802.0 |
| Basic EPS (Rs) | (18.97) | 26.00 | 8.02 |
The company swung from a loss in FY24 — with negative net worth and a going-concern remark from its statutory auditors — to strong profitability in FY25, before profit dropped sharply in FY26 even as revenue held roughly flat. This volatility, combined with the single-vessel dependence, is a key reason many brokerages have held back from a firm recommendation.
Valuation and Peer Comparison
The company operates in a niche that blends luxury hospitality with cruise voyages, and has no direct listed Indian peer. Its RHP therefore compares it against a blend of hotel, entertainment, and international cruise companies. On an FY26 EPS of Rs 8.02 and a NAV of Rs 12.31 per share, the pricing at the upper band appears steep relative to earnings.
| Company | EPS (Rs) | RoNW (%) | NAV (Rs) | P/E (x) |
|---|---|---|---|---|
| Waterways Leisure Tourism | 8.02 | 92.70 | 12.31 | — |
| Chalet Hotels | 29.50 | 19.40 | 168.83 | 25.73 |
| Juniper Hotels | 6.36 | 5.06 | 128.91 | 31.90 |
| Wonderla Holidays | 12.89 | 4.64 | 283.33 | 40.98 |
| Royal Caribbean Cruises | 332.39 | 9.37 | 3,143.58 | 75.79 |
| Carnival Corporation | 18.10 | 2.08 | 909.15 | 139.53 |
| Norwegian Cruise Line | 21.91 | 4.52 | 504.52 | 79.04 |
The very high stated RoNW of 92.7% is a function of the company’s small and recently negative net worth base, and should be read with caution rather than as a durable return metric.
Risks to Consider
The company operates through a single cruise vessel, so any disruption to the MV Empress would directly hit operations and cash flows. Revenue is heavily concentrated in cruise ticket sales (over 91% in FY26) and in Mumbai-originating bookings, leaving it exposed to any localised disruption. The auditors flagged a material uncertainty related to going concern in the FY24 report, and the company has a limited operating history with volatile profitability. Its growth strategy hinges on successfully commissioning two leased vessels, and any inability to meet lease-rental obligations could trigger termination of those agreements. Finally, occupancy-rate sensitivity and dependence on a handful of third-party operators for critical cruise functions add further execution risk.