Coastal Corporation Limited has announced that CARE Ratings Limited has reviewed and reaffirmed the credit ratings for the company's bank facilities. The long-term bank facilities received a rating of 'CARE BB; Stable', and the short-term bank facilities were rated 'CARE A4'. These ratings were previously assigned and have now been reaffirmed. The rating agency's assessment highlights improved revenue from operations in FY25 and H1FY26, driven by increased production volumes from the company's third processing unit. Profitability margins saw a decrease in FY25 due to countervailing duties imposed by the USA and rising input costs, but improved in H1FY26 with better realisations and lower material costs. The company's ratings are supported by an experienced management team, geographical advantages in the aquaculture zone, and a stable industry outlook. However, the ratings are tempered by increased working capital borrowings, geographical concentration risk (primarily exports to the US), a highly competitive business environment, dependence on climatic conditions, and regulatory aspects of the industry. An ethanol plant project experienced a cost overrun of ₹35 crore and is expected to commence operations from May 2025, with some pressure on liquidity due to associated debt repayments.

The company's consolidated financials show total operating income increased to ₹635.40 crore in FY25 from ₹439.71 crore in FY24. Profitability margins moderated in FY25 due to input cost inflation, but improved in H1FY26. Liquidity is described as stretched, with high utilisation of working capital limits. Coastal Corporation Limited is an export-oriented entity, with approximately 84% of its income from exports, mainly to the US. The company is actively diversifying its markets to reduce reliance on the US, with strategic partnerships and expansion into Chinese, Russian, and European markets planned.