COASTCORP - Coastal Corporat
📢 Recent Corporate Announcements
Coastal Corporation Limited reported a standalone revenue of ₹189.94 crore for the quarter ended December 31, 2025, representing a 6.3% increase year-on-year. Net profit for the period grew significantly by 156% YoY to ₹3.16 crore, although it saw a sequential decline of 31.6% from the previous quarter. A critical point for investors is the auditor's qualification regarding the company's refusal to provide for a ₹25 crore impairment on its US-based subsidiary, Seacrest Seafoods Inc., which currently has negative net worth. On a positive note, its subsidiary Coastal Biotech is now fully operational and selling ethanol to Oil Marketing Companies.
- Standalone Revenue from Operations reached ₹189.94 crore, up 6.3% from ₹178.67 crore in Q3 FY25.
- Net Profit stood at ₹3.16 crore for Q3 FY26 compared to ₹1.23 crore in the same quarter last year.
- Auditors issued a qualified opinion regarding non-provision of ₹25 crore impairment for subsidiary Seacrest Seafoods Inc.
- Finance costs rose to ₹6.42 crore in Q3 FY26 from ₹5.31 crore in the previous quarter.
- Coastal Biotech Private Limited is now operational and selling grain-based ethanol to OMCs.
Coastal Corporation Limited has submitted its compliance certificate under Regulation 76 of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by a Practicing Company Secretary, pertains to the quarter ended December 31, 2025. This is a standard regulatory filing regarding the reconciliation of share capital. The document was officially filed with both the NSE and BSE on January 24, 2026.
- Compliance with Regulation 76 of SEBI (Depositories and Participants) Regulations, 2018
- Reporting period covers the quarter ended December 31, 2025
- Certified by Practicing Company Secretary CS A V V S S CH B Sekhar Babu
- Filed with stock exchanges on January 24, 2026
CARE Ratings has reaffirmed Coastal Corporation's long-term rating at 'CARE BB; Stable' and short-term rating at 'CARE A4'. While the company saw a significant 44.5% surge in FY25 revenue to ₹635.40 crore driven by a 48% rise in production, profitability margins (PBILDT) compressed to 5.93% due to US countervailing duties. The company is currently facing liquidity pressure from a ₹35 crore cost overrun in its ethanol project, which is now expected to commence in May 2025. High debt levels, with gearing at 1.57x, and heavy reliance on the US market (84% of sales) remain primary concerns for the credit profile.
- FY25 Total Operating Income increased by 44.5% to ₹635.40 crore, supported by a 48% rise in production volumes to 9,329 MT.
- PBILDT margins declined from 7.39% in FY24 to 5.93% in FY25 due to US trade tariffs and rising freight costs.
- Overall gearing deteriorated to 1.57x in FY25 from 1.28x in FY24, reflecting higher working capital and project-related debt.
- The 198 KLPD ethanol plant project faced a ₹35 crore cost overrun with a revised commencement date of May 2025.
- Bank facilities under rating were enhanced to ₹234 crore from the previous ₹190 crore.
Coastal Corporation Limited has filed its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. This document confirms that the share certificates received for dematerialization have been verified, mutilated, and cancelled. The name of the depository has been updated in the company's records as the registered owner. This is a standard regulatory procedure to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted under Regulation 74(5) of SEBI (DP) Regulations, 2018
- BSE acknowledgement number 11795053 received on January 7, 2026
- Confirms verification and cancellation of physical share certificates for dematerialization
- Filing submitted by Company Secretary and Compliance Officer Swaroopa Meruva
Coastal Corporation Limited has informed the stock exchanges that its trading window will be closed starting January 1, 2025. This closure is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of the company's Q3 financial results. The window will remain shut for all designated persons, including directors and promoters, until 48 hours after the results are announced. The specific date for the board meeting to approve the financial results for the quarter ending December 31 will be shared in a separate notification.
- Trading window closure begins on Thursday, January 1, 2025
- Closure is in anticipation of Un-Audited Financial Results for the 3rd Quarter
- Restriction applies to all Employees, Directors, KMPs, Promoters, and their immediate relatives
- Window will reopen 48 hours after the official declaration of the financial results
Financial Performance
Revenue Growth by Segment
Marine Products revenue reached INR 612.99 Cr in FY25, representing a 44.8% increase from INR 423.36 Cr in FY24. Solar power remains a minor segment, while the new Ethanol segment via Coastal Bio-Tech Pvt Ltd has commenced operations.
Geographic Revenue Split
The USA is the primary market, contributing approximately 85% of total revenue. Other export destinations include China, South Korea, Japan, and Russia.
Profitability Margins
Net Profit Margin declined to 1.21% in FY25 (INR 7.40 Cr profit) from 1.93% in FY24 (INR 8.17 Cr profit). Profit Before Tax (PBT) fell 11.1% YoY to INR 10.28 Cr.
EBITDA Margin
EBITDA margin decreased to 7.11% in FY25 from 9.11% in FY24, primarily due to higher raw material costs and the impact of US countervailing duties on realizations.
Capital Expenditure
Significant historical CAPEX was directed toward the grain-based ethanol plant under Coastal Bio-Tech Pvt Ltd, which is now fully operational and selling to OMCs.
Credit Rating & Borrowing
The credit rating was revised/downgraded to CARE BB; Stable / CARE A4 in March 2025 from CARE BBB-; Stable / CARE A3 in January 2024. Finance costs rose 40.8% YoY to INR 21.10 Cr due to increased working capital borrowings.
Operational Drivers
Raw Materials
Raw Shrimp and other marine products represent the primary raw materials, accounting for 75.2% of total revenue at INR 460.78 Cr in FY25.
Import Sources
Raw materials are primarily sourced domestically from aquaculture zones in Andhra Pradesh, India.
Key Suppliers
Sourcing is conducted through a network of local aquaculture farmers and agents in the coastal regions of Andhra Pradesh.
Capacity Expansion
The grain-based ethanol plant is now fully operational. Seafood processing capacity is established in prime aquaculture zones to maintain a geographical sourcing advantage.
Raw Material Costs
Raw material costs increased 45.5% YoY to INR 460.78 Cr in FY25, tracking the 44.8% growth in revenue.
Manufacturing Efficiency
The ethanol plant is reported as fully operational and selling to OMCs; seafood processing efficiency is supported by proximity to raw material sources.
Logistics & Distribution
Other expenses, including freight and distribution, rose 100.6% YoY to INR 68.42 Cr, representing 11.2% of total revenue.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
Growth will be driven by scaling the new grain-based ethanol plant to fulfill contracts with Oil Marketing Companies (OMCs) and diversifying seafood exports into Russia and Japan to mitigate the 85% revenue concentration in the USA.
Products & Services
Frozen shrimp, processed seafood, grain-based ethanol, and solar power.
Brand Portfolio
Seacrest Seafoods (USA subsidiary).
New Products/Services
Grain-based ethanol production has commenced, targeting the fuel blending market with expected significant revenue contribution in FY26.
Market Expansion
Targeting expansion in Russia and Japan to diversify the export base and reduce vulnerability to US trade policies.
External Factors
Industry Trends
The seafood industry is seeing a shift toward processed products, while the ethanol industry is growing due to government mandates for 20% blending by 2025-26.
Competitive Landscape
Intense competition from both large and small domestic players, as well as international exporters from South-East Asia.
Competitive Moat
The company possesses a durable advantage through the extensive experience of its promoters and its strategic location in India's primary aquaculture hub, ensuring stable raw material access.
Macro Economic Sensitivity
Highly sensitive to global trade policies, US-India economic relations, and domestic fuel blending mandates.
Consumer Behavior
Global consumer trends are shifting toward convenient, processed, and frozen seafood options in Western markets.
Geopolitical Risks
Trade barriers, such as the imposition of countervailing duties by the US, pose a significant risk to the core export business.
Regulatory & Governance
Industry Regulations
Operations are subject to stringent international quality standards for seafood exports and US-imposed trade duties (CVD).
Environmental Compliance
The ethanol plant is a key ESG initiative, aligning with national renewable energy goals and providing a sustainable revenue stream.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 28%, with a current tax provision of INR 2.00 Cr on PBT of INR 10.28 Cr.
Legal Contingencies
The company is contesting FPPCA (Fuel Surcharge Adjustment) electricity charges; monthly payments are being made and charged to the P&L as a precautionary measure.
Risk Analysis
Key Uncertainties
Climatic conditions and disease outbreaks in aquaculture could impact raw material supply by up to 30% in a severe season.
Geographic Concentration Risk
85% of revenue is concentrated in the USA, creating extreme vulnerability to US trade policy shifts.
Third Party Dependencies
High dependency on US-based importers for seafood sales and local farmers for raw material procurement.
Technology Obsolescence Risk
Low risk in seafood processing; the ethanol division must maintain process efficiency to remain competitive for OMC tenders.
Credit & Counterparty Risk
Auditors noted no material uncertainty regarding the realization of financial assets or the company's ability to meet liabilities within one year.