Financial Performance for Q2 FY27 (Quarter Ended September 30, 2026)
Revenue from operations stood at ₹1,329 million, registering a year-on-year growth of 31% compared to ₹1,015 million in Q2 FY26.
EBITDA for the quarter was ₹777 million, with an EBITDA margin of 58.45%.
Profit After Tax (PAT) was ₹585 million, translating into a PAT margin of 44.02%.
Financial Performance for H1 FY27 (Half Year Ended September 30, 2026)
Revenue from operations stood at ₹3,230 million (₹3.23 billion), representing a year-on-year growth of 16%.
EBITDA stood at ₹1,242 million with an EBITDA margin of 38.45%.
PAT stood at ₹813 million with a PAT margin of 25.16%.
Operational and Fleet Updates
The company took delivery of its second vessel, Cordelia Sky, on the morning of October 09, 2026, at the International Cruise Terminal in Mumbai, one month ahead of its original delivery date of September 30, 2026.
The vessel is scheduled to commence sailing from October 23, 2026.
Cordelia Sky has a capacity of 2,400 guests across 1,002 staterooms, increasing the company's overall capacity by approximately 126%.
The company received USD 5.2 million (approx. ₹43.3 crore) in compensation from Norwegian Sky Limited for the early handover of the vessel on September 10, 2026. This amount was calculated for 21 days of early delivery based on a 100% load factor.
The delivery of the next vessel, SUN, remains on schedule and is expected in 11 months (approximately September 2027). SUN is a sister ship to Sky, slightly bigger with more suites.
The company is exploring further fleet expansion opportunities beyond SUN and is at an initial discussion stage. An advance of ₹4,290 million has been given for the acquisition of new vessels; this is an interest-bearing advance.
Operational Metrics
Load Factor: Improved marginally YoY to 75.53% in Q2 FY27. For H1 FY27, the load factor increased to 91.23% from 87.79% in H1 FY26.
Average Ticket Price: Stood at ₹10,300 in Q2 FY27 (vs. ₹9,529 in Q2 FY26). For H1 FY27, it increased to ₹11,082 (vs. ₹10,468 in H1 FY26).
Average Revenue Per Passenger: Stood at ₹13,645 in Q2 FY27 (vs. ₹10,349 in Q2 FY26). For H1 FY27, it increased to ₹12,930 (vs. ₹11,424 in H1 FY26).
Fuel Cost: Fuel cost per Available Passenger Cruise Day (APCD) increased to ₹2,471 in Q2 FY27 (vs. ₹1,434 in Q2 FY26). For H1 FY27, it stood at ₹2,481 (vs. ₹1,472 in H1 FY26). The total fuel impact for H1 FY27 was approximately ₹28 crore higher than the previous year.
The company maintains a debt-to-equity ratio of 0.57%.
Strategic Initiatives and Market Commentary
The company is rolling out a loyalty program called the Chairman's Club to deepen customer engagement.
Management highlighted the growing Indian cruise market, valued at approximately ₹8,301 million in FY25 and expected to grow at a 20-25% CAGR between FY26 and FY31.
The company sees a significant opportunity in the weddings and celebrations segment, with FY28 expected to have nearly 95 wedding dates versus a typical calendar of 65-70.
The primary cruising geography will remain India and Southeast Asia due to visa-friendly destinations and the development of 27 new cruise ports in India.
Capital Structure and Financing
Vessels are typically acquired on a hire-purchase arrangement, paying a fixed lease rental over 10 years, with an option to own the vessel for a dollar in the 10th year.
The company is considering either a hire-purchase arrangement or an outright purchase for future vessel acquisitions, funded by a mix of internal accruals and debt.
Short-term borrowings increased by ₹344 crore, which represents an advance kept ready with a mediator to facilitate a potential vessel acquisition deal.
Q&A Highlights
Management expects margins to align with global cruise standards of 35-40% as the fleet expands and operating leverage improves.
To mitigate high fuel costs, the company has implemented a fuel surcharge of $15-$20 per person per day and is optimizing itineraries and sailing speeds.
The company has no plans to phase out its first vessel, Empress, citing that cruise ships are continually upgraded internally despite the hull's age.
Revenue from the new Sky vessel is expected to be 100% higher than Empress, and from SUN 150% higher, driven primarily by a superior cabin mix (more suites and balconies).
The company purchases fuel (VLSFO) aligned with Singapore fuel plat prices and may explore hedging programs once the fleet expands to two or more vessels.
Seasonality: Q1 is a high quarter, Q2 is neutral, and Q3/Q4 (festive and wedding season) are traditionally strong.
