SYNOPSIS:
Coastal Biotech, a subsidiary of Coastal Corporation, secured ethanol supply orders totalling 56,521 kiloliters worth Rs. 361.73 crore, while easing US tariffs on Indian exports may further boost Coastal’s seafood business prospects.
During Thursday’s trading session, shares of a prominent player in the global shrimp processing and export industry hit a 20 percent upper circuit on the stock exchanges, after the company announced securing more than Rs. 361 crores of ethanol supply orders from oil marketing companies (OMCs).
With a market cap of Rs. 299.7 crores, shares of Coastal Corporation Limited hit a 20 percent upper circuit at Rs. 44.76 on BSE, as against its previous closing price of Rs. 37.3. The stock has delivered negative returns of around 7 percent in one year, but has gained by over 31 percent in the last one month.
What’s the News
According to the latest regulatory filings with the stock exchanges, Coastal Biotech Private Limited, a subsidiary of Coastal Corporation Limited, has been awarded significant ethanol supply orders for the Ethanol Supply Year (ESY) 2025-26.
The company participated in a tender dated 23rd September 2025, floated by Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol Programme (EBPP) for supply across various locations in India. Following the evaluation, Coastal Biotech received an allocation of 45,441 kiloliters of ethanol.
The tendering OMCs included Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited IHPCL) and Mangalore Refinery And Petrochemicals Limited (MRPL). In addition, the company also participated in a separate tender issued by Reliance for BP on the same date under the EBPP for ESY 2025-26 and secured an additional allocation of 11,080 kiloliters of ethanol.
With these combined allocations, Coastal Biotech’s total ethanol supply volume stands at 56,521 kiloliters, representing an estimated cumulative order value of around Rs. 361.73 crore for the current supply year.
Additionally, there’s another development that may have contributed to the sharp price movement in the company’s stock. Reports suggest that India and the US are on the verge of finalising a long-pending bilateral trade agreement, which could reduce US tariffs on Indian imports from nearly 50 percent to around 15-16 percent. The proposed deal – focused on the energy and agriculture sectors – may also involve India gradually scaling back its imports of Russian crude oil, aligning with global energy realignments.
According to media sources, US President Donald Trump and Prime Minister Narendra Modi recently discussed trade and energy cooperation, with the official announcement of the deal expected at the upcoming ASEAN Summit later this month.
The development is particularly significant for Indian seafood exporters, as the US is the largest destination for Indian shrimp and seafood exports, accounting for nearly one-third of the country’s total seafood trade. A potential tariff reduction could enhance export competitiveness and drive further growth in India’s seafood and agri-based export sectors, indirectly benefiting companies like Coastal Corporation, which have a strong global presence.
Financials & More
Coastal Corporation reported a significant growth in its revenue from operations, showing a year-on-year increase of over 38 percent from Rs. 132.8 crores in Q1 FY25 to Rs. 183.6 crores in Q1 FY26.
Similarly, its net profit increased during the same period from Rs. 3.05 crores to Rs. 5.8 crores, representing an impressive rise of nearly 90 percent YoY. Coastal Corporation Limited, based in Visakhapatnam, India, is a prominent player in the global shrimp processing and export industry. The company specialises in the business of offering a wide range of premium shrimp products, including raw, cooked, butterfly, IQF (Individually Quick Frozen), headless, shell-on, and skewered shrimp.
Its product portfolio includes premium varieties such as Black Tiger and Vannamei shrimp, catering to key international markets across the US, Europe, Canada, Japan, China, Hong Kong and Russia.
In addition, its subsidiary, Coastal Biotech Private Limited, has recently completed successful trial runs and commenced full-scale ethanol production in May 2025. The subsidiary is projected to achieve a turnover of ~Rs. 300 crore and a net profit of Rs. 18 crore in the upcoming fiscal year, despite incurring a cost overrun of Rs. 35 crore on account of infrastructure enhancements and delays in machinery supply.
Written by Shivani Singh
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