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What is the story about?
Cordelia Cruises believes its growth story is only beginning, with revenue potential set to rise sharply as it expands from one ship to three and significantly increases its premium cabin inventory.
The cruise operator currently runs the Empress but is preparing to add Norwegian Sky and Norwegian Sun to its fleet. Management said the new vessels are larger, offer more premium accommodation and will materially increase capacity over the next few years.
"796 rooms go to 2800 rooms, and the premium cabin mix is increasing by 1,000%," said Nishikant Upadhyay, CFO of Waterways Leisure Tourism, the operator of
Cordelia Cruises
.
The company argues that the market is looking at its current business, while the economics of the incoming vessels are considerably stronger. Norwegian Sky and Norwegian Sun have more than 1,000 rooms each and a much larger share of balcony cabins and suites, which typically command higher prices.
Management also noted that the growth is not entirely in the future. Since cruises are often sold up to 18 months in advance, bookings for the new ships have already started generating revenue.
The company expects the larger fleet to improve profitability as well. According to management, the cruise business breaks even at around 60% load factor even at the lowest pricing tier.
"60% is the lowest ticket fare. We break even," Chairman & CEO Jurgen Bailom said.
CFO Nishikant Upadhyay said reported margins do not fully reflect the business's earnings potential because of accounting changes related to lease expenses. On a normalised basis, he said earnings before interest, taxes, depreciation and amortisation (EBITDA) margins are closer to 35-40%.
The company also sought to address concerns around cash flow. Upadhyay said a large part of the apparent cash outflow in 2025-26 (FY26) was linked to advance payments made for vessel acquisitions and future lease commitments. Excluding those payments, the business would have generated positive operating cash flow, he said.
On the age of the ships, management argued that cruise vessels do not have a conventional economic life because they undergo continuous maintenance, upgrades and regulatory inspections.
"The steel is 25 years old; inside of the ship everything is brand new," Bailom said.
Like any travel business, Cordelia Cruises remains exposed to geopolitical disruptions and health-related events. However, management believes the flexibility of moving ships across routes and operating year-round gives it an advantage in navigating changing market conditions.
For now, the company's focus is on scaling capacity and premium offerings, betting that India's growing appetite for cruise vacations will support the next phase of growth.
The cruise operator currently runs the Empress but is preparing to add Norwegian Sky and Norwegian Sun to its fleet. Management said the new vessels are larger, offer more premium accommodation and will materially increase capacity over the next few years.
"796 rooms go to 2800 rooms, and the premium cabin mix is increasing by 1,000%," said Nishikant Upadhyay, CFO of Waterways Leisure Tourism, the operator of
The company argues that the market is looking at its current business, while the economics of the incoming vessels are considerably stronger. Norwegian Sky and Norwegian Sun have more than 1,000 rooms each and a much larger share of balcony cabins and suites, which typically command higher prices.
Management also noted that the growth is not entirely in the future. Since cruises are often sold up to 18 months in advance, bookings for the new ships have already started generating revenue.
The company expects the larger fleet to improve profitability as well. According to management, the cruise business breaks even at around 60% load factor even at the lowest pricing tier.
"60% is the lowest ticket fare. We break even," Chairman & CEO Jurgen Bailom said.
CFO Nishikant Upadhyay said reported margins do not fully reflect the business's earnings potential because of accounting changes related to lease expenses. On a normalised basis, he said earnings before interest, taxes, depreciation and amortisation (EBITDA) margins are closer to 35-40%.
The company also sought to address concerns around cash flow. Upadhyay said a large part of the apparent cash outflow in 2025-26 (FY26) was linked to advance payments made for vessel acquisitions and future lease commitments. Excluding those payments, the business would have generated positive operating cash flow, he said.
On the age of the ships, management argued that cruise vessels do not have a conventional economic life because they undergo continuous maintenance, upgrades and regulatory inspections.
"The steel is 25 years old; inside of the ship everything is brand new," Bailom said.
Like any travel business, Cordelia Cruises remains exposed to geopolitical disruptions and health-related events. However, management believes the flexibility of moving ships across routes and operating year-round gives it an advantage in navigating changing market conditions.
For now, the company's focus is on scaling capacity and premium offerings, betting that India's growing appetite for cruise vacations will support the next phase of growth.
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