💰 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.