Waterways Leisure Tourism reported strong Q2 FY27 results with revenue hitting Rs 132.9 crore, up 31% YoY. The company successfully expanded its capacity by 126% with the addition of the 'Cordelia Sky' vessel. Despite a significant rise in fuel costs, improved load factors and higher passenger revenue drove profitability.
Waterways Leisure Tourism Q2 FY27 Financial Results
Revenue: Rs 132.9 crore (+31% YoY) | PAT: Rs 58.5 crore
Reader Takeaway: Robust capacity expansion and pricing power drive growth, but rising fuel costs remain a key margin headwind.
What just happened
Waterways Leisure Tourism reported a strong second quarter for FY27, with revenue from operations reaching Rs 132.9 crore, marking a 31% year-on-year increase. The company benefited from a one-time gain of USD 5.2 million related to the early handover of the 'Sky' vessel to Norwegian Sky Limited. For the first half of the fiscal year, revenue reached Rs 323 crore with an EBITDA margin of 38.45%.
Fleet and Capacity Update
The company significantly bolstered its market presence with the delivery of 'Cordelia Sky.' The new vessel features 1,002 staterooms and a 2,400-guest capacity, effectively increasing the company’s total fleet capacity by 126%. Sailings for the new vessel commenced in October 2026, with management projecting increased operational flexibility. An additional vessel, 'SUN,' is expected to join the fleet within the next 11 months.
Operational Performance
Operating metrics showed positive momentum, with the Q2 load factor improving to 75.53%. Average revenue per passenger climbed to Rs 13,645 from Rs 10,349 in the same period last year. Higher ticket pricing, which rose to an average of Rs 10,300, further supported the top-line growth.
Risks to watch
Fuel costs pose a notable challenge to the company's bottom line. Management reported a Rs 28 crore hit to H1 FY27 earnings due to rising fuel expenses. The cost per Available Passenger Cruise Day (APCD) spiked to Rs 2,471 in Q2 compared to Rs 1,434 in the previous year. To manage this, the company is implementing fuel surcharges and optimizing cruise itineraries.
What to track next
The market will monitor how the company integrates the new 'Cordelia Sky' into its revenue mix and whether it can sustain its high occupancy levels as it scales up. Additionally, keep an eye on fuel price volatility and the scheduled delivery of the 'SUN' vessel in 2027.