Coastal corporation Limited has formally notified stock exchanges about an upcoming board meeting scheduled for February 12, 2026. The company issued the intimation on January 31, 2026, addressing both the Bombay Stock Exchange and National Stock Exchange of India regarding this important corporate governance event.

Board Meeting Agenda

The board meeting has been scheduled with specific objectives outlined for stakeholder transparency:

Trading Window Restrictions

In accordance with regulatory compliance requirements, Coastal Corporation Limited has implemented trading window restrictions. The company has confirmed that the trading window for all designated persons and their immediate relatives will remain closed until February 14, 2026. This closure period extends 48 hours beyond the scheduled board meeting date, ensuring compliance with insider trading regulations.

Corporate Communication Details

The formal intimation was signed by Swaroopa Meruva, who serves as the Company Secretary and Compliance Officer. The notification was simultaneously sent to both major stock exchanges where the company's shares are listed, maintaining transparency in corporate communications.

Company Information

Coastal Corporation Limited operates as a Government of India recognized three-star export house. The company maintains its registered office in Visakhapatnam, Andhra Pradesh, and operates multiple manufacturing units across the region. The organization continues to fulfill its regulatory obligations through timely disclosure of material information to stock exchanges and stakeholders.

Coastal Corporation Limited has received reaffirmation of its credit ratings from CARE Ratings Limited for bank facilities totaling ₹234.00 crore. The rating agency maintained its previous assessments while acknowledging both operational improvements and ongoing challenges faced by the seafood processing and export company.

Credit Rating Details

CARE Ratings reaffirmed the company's credit ratings without any changes to the previous assessments:

The rating reaffirmation was communicated to both NSE and BSE on January 10, 2026, in compliance with SEBI LODR Regulations 2015.

Financial Performance Highlights

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

In H1FY26, the company achieved total operating income of ₹343.34 crore, representing a 19% increase compared to H1FY25. PBILDT margins improved to 7.93% in H1FY26 from 5.93% in the previous period, supported by better sales realizations and lower material costs.

Operational Challenges and Market Dynamics

The rating agency highlighted several challenges affecting the company's operations. Profitability margins decreased in FY25 due to countervailing duties imposed by the USA and continued inflation in input raw material and freight costs. The company faces geographical concentration risk with approximately 84% of total income derived from export sales, primarily to the US market.

Following the US government's imposition of 50% reciprocal tariffs on Indian exports in August 2025, Coastal Corporation has actively pursued market diversification. The company entered Chinese, Russian, Japanese, and European markets and established strategic partnerships with Japan's Toyo Reizo Co. Limited and South Korea's SPC GFS Co. Limited.

Capital Structure and Liquidity Position

The company's capital structure showed some deterioration with overall gearing increasing to 1.57x in FY25 from 1.28x in FY24 due to higher total debt. The PBILDT interest coverage ratio declined to 1.74x in FY25 compared to 2.12x in FY24, while total debt to gross cash accruals remained moderate at 23.02x.

Liquidity remains stretched but is supported by a year-end balance of ₹59.57 crore against debt repayments of ₹8.00 crore in FY26. However, maximum fund-based working capital utilization remained high at 96% for the 12 months ended June 30, 2025.

Ethanol Project Impact

The company's ethanol plant project through subsidiary Coastal Biotech Private Limited experienced cost overruns of ₹35.00 crore due to infrastructure additions and delays in machinery supply. The plant commenced operations in May 2025, but the project has created pressure on liquidity due to debt repayments and interest charges from project financing.

Rating Outlook and Sensitivities

CARE Ratings maintained a stable outlook, believing the company will continue to benefit from extensive promoter experience in the industry. Positive rating factors include potential improvement in overall gearing below 1.0x, PBILDT margin improvement above 9%, and stabilization of the ethanol plant operations.

Negative factors that could impact ratings include overall gearing deteriorating beyond 1.50x or significant decline in total operating income exceeding 30% year-on-year with PBILDT margins falling below 6%.