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Coastal Corp Q3 Standalone Net Profit Surges 156% YoY to ₹3.16 Cr; Revenue Up 6%
Coastal Corporation Limited reported a standalone revenue of ₹189.94 crore for the quarter ended December 31, 2025, representing a 6.3% increase year-on-year. Net profit for the period grew significantly by 156% YoY to ₹3.16 crore, although it saw a sequential decline of 31.6% from the previous quarter. A critical point for investors is the auditor's qualification regarding the company's refusal to provide for a ₹25 crore impairment on its US-based subsidiary, Seacrest Seafoods Inc., which currently has negative net worth. On a positive note, its subsidiary Coastal Biotech is now fully operational and selling ethanol to Oil Marketing Companies.
Key Highlights
Standalone Revenue from Operations reached ₹189.94 crore, up 6.3% from ₹178.67 crore in Q3 FY25.
Net Profit stood at ₹3.16 crore for Q3 FY26 compared to ₹1.23 crore in the same quarter last year.
Auditors issued a qualified opinion regarding non-provision of ₹25 crore impairment for subsidiary Seacrest Seafoods Inc.
Finance costs rose to ₹6.42 crore in Q3 FY26 from ₹5.31 crore in the previous quarter.
Coastal Biotech Private Limited is now operational and selling grain-based ethanol to OMCs.
💼 Action for Investors
Investors should remain cautious due to the auditor's qualification regarding the ₹25 crore potential impairment which could impact future bottom lines. Monitor the performance of the new ethanol business and the recovery of the US subsidiary over the next 12 months.
CARE Reaffirms Coastal Corp's 'BB; Stable' Rating; FY25 Revenue Up 44.5% to ₹635 Cr
CARE Ratings has reaffirmed Coastal Corporation's long-term rating at 'CARE BB; Stable' and short-term rating at 'CARE A4'. While the company saw a significant 44.5% surge in FY25 revenue to ₹635.40 crore driven by a 48% rise in production, profitability margins (PBILDT) compressed to 5.93% due to US countervailing duties. The company is currently facing liquidity pressure from a ₹35 crore cost overrun in its ethanol project, which is now expected to commence in May 2025. High debt levels, with gearing at 1.57x, and heavy reliance on the US market (84% of sales) remain primary concerns for the credit profile.
Key Highlights
FY25 Total Operating Income increased by 44.5% to ₹635.40 crore, supported by a 48% rise in production volumes to 9,329 MT.
PBILDT margins declined from 7.39% in FY24 to 5.93% in FY25 due to US trade tariffs and rising freight costs.
Overall gearing deteriorated to 1.57x in FY25 from 1.28x in FY24, reflecting higher working capital and project-related debt.
The 198 KLPD ethanol plant project faced a ₹35 crore cost overrun with a revised commencement date of May 2025.
Bank facilities under rating were enhanced to ₹234 crore from the previous ₹190 crore.
💼 Action for Investors
Investors should closely monitor the timely commencement and stabilization of the ethanol plant as it is critical for debt servicing. Diversification away from the US market and improvement in the 1.57x gearing ratio are key triggers for a potential rating upgrade.