Revenue and Profitability Trends
Over the seven-year period ending March 2025, Coastal Corporat’s net sales demonstrated notable volatility. The company recorded its highest sales in fiscal 2019 at over ₹616 crores, followed by a decline in subsequent years, reaching a low point in 2023 at approximately ₹353 crores. However, the latest fiscal year saw a robust rebound with net sales surging to ₹628 crores, surpassing previous highs. This recovery reflects a strong market demand or operational improvements.
Despite the sales fluctuations, the operating profit margin (excluding other income) has generally trended downward from a peak of 9.49% in 2019 to 4.86% in 2025. This decline suggests rising costs or pricing pressures impacting operational efficiency. The gross profit margin similarly contracted from 10.53% to 3.17% over the same period, indicating tighter margins on core activities.
Profit after tax (PAT) has mirrored this trend, falling from ₹37.92 crores in 2019 to ₹4.48 crores in 2025. The PAT margin declined from 6.16% to 0.71%, signalling challenges in maintaining profitability despite revenue growth. Earnings per share (EPS) also reflected this downturn, dropping from 37.29 in 2019 to 3.34 in 2025, highlighting the impact on shareholder returns.
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Cost Structure and Expenditure
Raw material costs have been a significant component of total expenditure, fluctuating in line with sales but showing a reduction from ₹572 crores in 2019 to ₹464 crores in 2025. The purchase of finished goods has varied, peaking in 2021 at over ₹70 crores before declining sharply. Notably, the company has consistently reported negative stock increases, indicating inventory drawdowns that may have supported working capital management.
Employee costs have risen steadily from ₹13.14 crores in 2019 to ₹24.14 crores in 2025, reflecting possible workforce expansion or wage inflation. Other expenses have increased markedly, reaching ₹176.53 crores in 2025 from just ₹7.88 crores in 2019, which may warrant further scrutiny regarding operational overheads.
Balance Sheet and Financial Position
Coastal Corporat’s total assets have expanded significantly, from ₹280 crores in 2019 to ₹750 crores in 2025, driven by increases in both fixed assets and capital work in progress. The net block of assets rose from ₹35 crores to ₹155 crores, while capital work in progress surged to nearly ₹140 crores, indicating ongoing investments in capacity or infrastructure.
Shareholders’ funds have grown steadily, reaching ₹262 crores in 2025, supported by rising reserves. However, the company’s debt levels have escalated sharply, with total debt increasing from ₹112 crores in 2020 to over ₹409 crores in 2025. This rise in leverage is primarily due to short-term borrowings, which more than doubled in the latest fiscal year, potentially increasing financial risk.
Cash Flow Analysis
Cash flow from operating activities has been inconsistent, with a negative outflow of ₹62 crores in 2024 but a positive inflow of ₹27 crores in 2023. The company has invested heavily in capital expenditure, as reflected by negative cash flows from investing activities, peaking at ₹80 crores in 2024. Financing activities have provided substantial inflows, particularly in 2024 with ₹151 crores, likely to support the increased borrowings and capital investments.
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Summary and Outlook
Coastal Corporat’s historical performance reveals a company navigating through cyclical revenue swings and margin pressures while undertaking significant capital expansion. The sharp increase in debt and fluctuating profitability margins suggest a need for cautious monitoring of financial health and operational efficiency. Investors should weigh the company’s growth initiatives against its rising leverage and compressed profit margins when considering future prospects.
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