Coastal Corporation Ltd Q2 FY26 – Shrimp, Subsidies, and a Splash of Ethanol Drama!

1. At a Glance

Coastal Corporation Ltd (BSE: 501831 | NSE: COASTCORP) — the Vizag-based shrimp exporter that decided to moonlight as an ethanol producer — has had a quarter that feels like an episode ofShark Tank meets Narcos. At ₹46.6 per share (market cap ₹312 crore), the stock has jumped 47.7% in the last three months, which probably means even the prawns are partying underwater. The company clocked quarterly sales of ₹159.68 crore (up 3.17% QoQ) and a PAT of ₹3.67 crore (up a wild 620% QoQ). Yes, you read that right — six hundred percent — because when your last quarter profit is microscopic, even a few extra rupees make you look like a genius.

With a P/E of 30.1, ROE of just 1.71%, and a debt-to-equity of 1.54, the shrimp exporter is leveraged enough to make a banker nervous and a comedian optimistic. ROCE is 4.61%, but at least the dividend yield of 0.47% buys you one tiny shrimp per share. The company has started producing ethanol through its subsidiary Coastal Biotech Pvt. Ltd., marking its official entry into India’s sugarcane-fueled dream of blending booze with petrol.

The cherry on the shrimp cocktail? The auditor flagged a ₹25 crore impairment issue in a U.S. subsidiary, but the board smiled, waved, and proposed a merger of its subsidiaries anyway.

2. Introduction

What happens when a seafood company suddenly decides to go into ethanol production? Welcome to Coastal Corporation Ltd — where diversification is less of a strategy and more of a midlife crisis. Incorporated in 1981, this Andhra-based seafood processor has spent four decades exporting shrimp to the U.S., Japan, Korea, and half the planet’s sushi restaurants. Now, it wants to distill ethanol in Odisha, probably to drown its export tariff woes.

The latest quarter, Q2 FY26, was a mix of spicy gains and salty realities. Revenue grew modestly, but profits bounced back like a dead fish revived with Red Bull. The company’s export approvals to Russia and a 56,521 KL ethanol allocation from OMCs worth ₹361 crore were the big headlines. However, the U.S. still contributes 83% of its shrimp revenue — one tariff move there and Coastal’s income curve can look like the Bay of Bengal after a cyclone.

But you must hand it to them: building three shrimp units and one ethanol plant in two different states while managing forex swings, freight costs, and American import tantrums — it’s a juggling act. And in Coastal’s world, juggling is the only sport that pays.

3. Business Model – WTF Do They Even Do?

Coastal Corporation is a seafood processing and export company, but describing it that simply is like calling a biryani “some rice with stuff.” It’s a HACCP, BRC, and BAP-certified operation — fancy acronyms that basically mean they follow enough hygiene rules to make foreign buyers feel safe eating their shrimp.

Their products include both sea-caught (Tiger, White, Pink Brown) and aquaculture (Vannamei, Black Tiger) shrimps — all processed, peeled, deveined, and frozen faster than your salary vanishes on the first weekend of the month. They sell under brands likeCoastal,Coastal Premium,Coastal Gold,Jewel, andPresident— which sounds like a seafood election lineup.

But wait, there’s more. The company’s 3 shrimp units in Andhra Pradesh churn out IQF (Individually Quick Frozen) products, while their shiny new venture — Coastal Biotech Pvt. Ltd. — produces ethanol in Odisha. Yes, from prawns to petrol. They claim “synergies,” though shrimp oil and ethanol are yet to find common ground outside drunken dinner parties.

Their export network spans the U.S., Japan, Korea, Europe, UAE, and now Russia. It’s a 100% export-oriented setup, but over 80% of that still comes from the U.S. — basically, if America sneezes, Coastal gets pneumonia.

4. Financials Overview

Quarterly Results (₹ crore, Consolidated)

Commentary:Revenue held steady, but profit margins were the real drama. After a mini