Cordelia Cruises plans to raise Rs 727 crore through a pure fresh issue. This has put the focus directly on India’s coastal cruise market. International brokerage house, Jefferies, indicated that the IPO could be a crucial link between a constrained present to a larger operating base. The company currently runs all operations on a single vessel, the 1990-built MV Empress, yet is pitching a strategy that would triple its capacity over the next two years, Jefferies said.
Jefferies on Cordelia Cruises: Policy backdrop and infrastructure
Jefferies pointed out that the IPO aligns with a broader infrastructure build-out. Mumbai’s new international cruise terminal opened in April 2025 after a Rs 560 crore investment. It can handle five ships simultaneously and up to 15,000 passengers a day. The Cruise Bharat Mission aims to simplify port processes and rationalise tariffs to support traffic growth to 10 lakh by 2029.
The brokerage estimates that the domestic cruise industry could grow from about Rs 900 crore to between Rs 4,000 crore and Rs 4,800 crore by FY30, supported by policy changes and increased capacity.
Jefferies on Cordelia Cruises: Capital required to add scale
Jefferies noted that more than three-fourths of the IPO proceeds are committed toward lease rentals and deposits for two former Norwegian Cruise Line vessels. Norwegian Sky is expected to join the fleet in September 2026 and Norwegian Sun in November 2027 under 10-year charters. The brokerage described the structure as front-loaded, with the bulk of near-term payments covering the first years of rental obligations and advance deposits. Only the remainder is marked for general corporate purposes.
Jefferies said the capital raise is necessary for scale, but the fixed-cost nature of long leases is a key commitment that will begin well before the ships reach full utilisation.
Jefferies on Cordelia Cruises: Limitations of a single ship
Cordelia posted revenue of Rs 440 crore in FY24, easing from Rs 482 crore in the previous financial year. Part of the decline was due to the suspension of Sri Lanka sailings because of low occupancies. The brokerage notes that occupancy improved to 86% in 9MFY25 from 79% in FY24, which helped lift EBITDA margin to 33% from 23%. Jeffeires attributed the improvement to lower fuel, stable port costs and a higher share of direct bookings.
Despite the improvement, Jefferies highlighted the reliance on one vessel as the structural constraint. The Empress is older than global fleet averages, and repairs and maintenance costs have risen to 2.8% of sales from 2%. The report notes that a single technical disruption would halt the entire operation.
Jefferies on Cordelia Cruises: Fleet expansion and operating scale
The company’s plan to add Norwegian Sky and Norwegian Sun lifts total passenger capacity from 2,005 to 5,945 once both vessels begin operations. Cabin inventory is then expected to increase to 2,767 from 796. Jefferies calls this a significant scale-up in a market still under 5 lakh passengers annually. It adds that earlier industry experience suggests new capacity tends to lift demand, although operators have also exited quickly when conditions turn difficult, as per Jefferies. The brokerage also noted that competition is set to increase. Resorts World Cruises plans to homeport in Mumbai from 2026, and other global lines run seasonal sailings from Indian ports. Cordelia’s itineraries will no longer be the only domestic option once new capacity enters the market.
Jefferies on Cordelia Cruises: Key risk factors to watch
Jefferies flagged a mix of positives and risks. Demand indicators have improved, but the current fleet remains thin until late 2026. Lease obligations create fixed foreign-currency commitments, and the Empress’s age is a continuing operational risk. Competition is rising, even as occupancy trends remain strong.
Jefferies pointed out that investors would need to assess whether the offer adequately captures both the opportunity from rising demand and the limitations of a one-ship operator taking on long-term lease obligations.