Coastal Corporation Limited's promoter group has submitted a regulatory disclosure confirming zero encumbrance or pledging of shares for the financial year ended 31st March 2026. The declaration was filed by Thottoli Valsaraj, Managing Director and Promoter, acting on behalf of the promoter and promoter group of the company.

Disclosure Under SEBI SAST Regulations

The filing has been made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was submitted to both the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited, along with the company, and is dated 03rd April 2026.

The key details of the disclosure are summarised below:

Key Declarations

In the disclosure, the promoter group confirmed the following:

• No encumbrance of shares, directly or indirectly, was made during the financial year ended 31st March 2026.
• As on 31st March 2026, nil shares of Coastal Corporation Limited stand encumbered or pledged by the promoter group.

The disclosure was addressed to the Listing Compliance departments of both stock exchanges and to the company at its registered office in Visakhapatnam, Andhra Pradesh.

Coastal Corporation Limited has received a comprehensive credit rating review from CARE Ratings Limited for its bank facilities totaling ₹341.78 crore. The rating agency has assigned new ratings and reaffirmed existing ones, maintaining a stable outlook for the seafood processing and export company.

Rating Details and Actions

CARE Ratings has taken multiple rating actions across different facility categories:

The rating reaffirmation continues to derive strength from improved revenue from operations in FY25 and 9MFY26, despite challenges from US countervailing duties and input cost pressures.

Financial Performance Highlights

Coastal Corporation demonstrated significant revenue growth in recent periods. The company's total operating income improved by 44.50% from ₹439.71 crore in FY24 to ₹635.40 crore in FY25. This revenue improvement was primarily driven by a 48% increase in production volumes to 9,329 metric tonnes, enabled by full-scale operations of its third processing unit.

In 9MFY26, the company achieved total operating income of ₹645.99 crore, representing a 37.11% increase compared to 9MFY25. PBILDT margins improved from 5.53% in 9MFY25 to 6.86% in 9MFY26 due to higher sales realizations and lower raw material costs.

Business Strengths and Challenges

The rating reflects several key strengths including experienced management with over 30 years in the seafood industry, geographical advantage due to presence in Andhra Pradesh's aquaculture zone, and government support for the seafood export sector. The company benefits from its strategic location with three processing units in prime aquaculture zones, enabling immediate processing after harvest.

However, the ratings are tempered by geographical concentration risk with approximately 84% of sales from the US market, working capital intensive operations, and exposure to climatic conditions. The company faces challenges from the 50% reciprocal tariff imposed by the US government on Indian shrimp exports as of August 2025.

Ethanol Business Development

Coastal Corporation has diversified into ethanol production through its wholly owned subsidiary, Coastal Biotech Private Limited. The ethanol plant with 198 KLPD capacity commenced commercial operations in September 2025, though it experienced a cost overrun of ₹35 crore due to infrastructure additions and EPC contractor delays. Post-commissioning, the plant contributed approximately ₹103 crore to revenue and ₹3.7 crore to profit after taxation till December 2025.

Market Diversification Strategy

To mitigate geographical concentration risks, Coastal Corporation is actively pursuing market diversification beyond the US. The company has entered Chinese, Russian, Japanese, and European markets and established strategic partnerships with Japan's Toyo Reizo Co. Limited (Mitsubishi Corporation) and South Korea's SPC GFS Co. Limited. These initiatives are expected to reduce reliance on the US market and support future growth.

Rating Outlook and Sensitivities

CARE Ratings maintains a stable outlook, believing the entity will continue to benefit from promoters' extensive industry experience. Positive rating factors include potential improvement in overall gearing below 1.0x, PBILDT margin improvement above 9%, and stabilization of the ethanol plant. Negative factors could include gearing deterioration beyond 1.50x or significant decline in total operating income by over 30% year-on-year.