Coastal Corporation Limited has informed the Exchange about Credit Rating
COASTCORP · price
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CARE Ratings has reaffirmed Coastal Corporation Limited's credit ratings at CARE BB; Stable for long-term bank facilities and CARE A4 for short-term facilities. The total bank facility amount has been enhanced from ₹190 crore to ₹234 crore. The reaffirmation reflects the company's 45% revenue growth in FY25 driven by a 48% rise in production volumes from its third processing unit, though profitability was pressured by US countervailing duties and higher input costs. Liquidity remains stretched with working capital utilisation at around 96% and ongoing debt repayment pressures from its ethanol plant project, which saw a ₹35 crore cost overrun. The company is diversifying away from the US (which contributes ~84% of income) into China, Russia, Japan and Europe following US tariff actions.
The rating stands at CARE BB (speculative grade, below investment grade), signalling elevated credit risk for lenders and bondholders. While reaffirmation provides some stability, the sub-investment grade status, stretched liquidity, and exposure to US trade policy headwinds remain key concerns for shareholders and potential investors.