Coastal Corporation Ltd

Incremental EBPP allocation

• Coastal Biotech, a Coastal Corporation subsidiary, received incremental EBPP Ethanol allocation for ESY 2025-26.
• The allocation is 4,310 KL to supply to BPCL, IOCL, and HPCL under EBPP across locations.

Bank repayment-date clarification

• Context: clarification following a recent credit rating revision on repayments.
• Funds for scheduled repayments were available; bank records reflect processing dates.
• MTM/FCY movements and facility-level processing cause value-dating, not borrower delays.
• May 31, 2025: EMI recovery for Cash Credit/OD; no borrower delay.
• Dec 1, 2025: EMI recoveries for two loans completed; value-date Nov 30, 2025; no delay.
• Mar 2, 2026: EMI recoveries for two loans completed; value-date Feb 28, 2026; no delay.
• Apr 8, 2026 & May 7, 2026: recoveries completed after MTM/FCY delays; WC constraints resolved.
• Overall account conduct satisfactory; no stress observed in facilities.

Rating action

• Long-term bank facilities Rs 68.28 crore downgraded to CARE D from CARE BB.
• Long-term/short-term facilities Rs 273.50 crore downgraded to CARE D / CARE D.

Rated facilities

• Total facilities rated Rs 341.78 crore.
• Long-term bank facilities and fund-based limits comprise the above totals.

Rationale

• Downgrade due to FY26 operational and financial performance and delays in annual report.
• Possible impact on credit profile cited by CARE Ratings.

Outlook / Change since last rating

• Outlook not disclosed in action; prior rating had Stable outlook.
• Change since last rating: Downgraded from CARE BB; prior outlook Stable.

Agency

• Rating agency: CARE Ratings Limited (CareEdge Ratings).

Material changes

• Downgrade from CARE BB to CARE D for both instruments.

Meeting Details

• Date: 3 August 2026; time and venue not disclosed.

Key Agenda Items

• Un-Audited financial results for quarter ended 30 June 2026 to be considered.

Other Notes

• Trading window closed from 1 July 2025; reopens 48 hours after the board meeting.

Dematerialisation status

• No dematerialisation/rematerialisation requests were received during the reporting period.

Trading window

• Trading window closed from 1 July 2026 until 48 hours after results for quarter ended 30 June 2026.

Business

• Coastal Corporation processes and exports shrimp and value-added seafood products.
• It also operates a grain-based ethanol business through subsidiary Coastal Biotech.

Operations

• Seafood operations include Unit II and Unit III facilities in Andhra Pradesh.
• Ethanol plant capacity is 198 KLPD in Odisha.

Financials

• Seafood business revenue was Rs 728.75 crore, with EBITDA of Rs 35.31 crore.
• Seafood EBITDA margin was 4.85%; PBT was Rs 17.36 crore.
• Ethanol business revenue was Rs 241.90 crore, with EBITDA of Rs 25.16 crore.
• Ethanol EBITDA margin was 10.40%; PBT was Rs 17.49 crore.

Leadership

• Mr. G.V.V. Satyanarayana is Director-Finance and CFO.
• Dr. E. Sankara Rao is Chairman and Independent Director.
• Mr. Valsaraj Thottoli is Founder, Vice Chairman and Managing Director.