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.

Coastal corporation Limited has fulfilled its quarterly regulatory compliance by submitting the mandatory certificate under SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. The submission demonstrates the company's adherence to securities market regulations governing dematerialisation processes.

Regulatory Compliance Details

The certificate was submitted under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, which mandates quarterly reporting of dematerialisation activities. The compliance document covers the period from January 1, 2026, to March 31, 2026, representing the fourth quarter of fiscal year 2026.

Certificate Issuer and Verification

Bigshare Services Private Limited, serving as the company's Registrar and Share Transfer Agent, issued the compliance certificate on April 4, 2026. The certificate confirms that securities received from Depository Participants for dematerialisation during Q4 FY26 were properly processed and confirmed to the depositories.

The registrar verified that all security certificates received for dematerialisation were mutilated and cancelled after due verification by the Depository Participant. Additionally, the names of the Depositories were substituted in the register of members as registered owners within the stipulated 15-day timeframe.

Stock Exchange Notifications

Coastal Corporation Limited submitted the compliance certificate to both major Indian stock exchanges where its shares are listed. The company maintains its listing presence on:

• National Stock Exchange (NSE): Trading under symbol COASTCORP
• Bombay Stock Exchange (BSE): Listed with scrip code 501831

Company Profile

Coastal Corporation Limited operates as a Government of India recognised Three Star Export House, with its registered office located in Visakhapatnam, Andhra Pradesh. The company maintains three operational units across Andhra Pradesh, including facilities in Visakhapatnam and Kakinada SEZ.

The submission of this quarterly certificate ensures Coastal Corporation Limited remains compliant with SEBI's regulatory framework, maintaining transparency in its dematerialisation processes and upholding investor protection standards mandated by Indian securities regulations.