This study evaluated the microbial conversion of coconut oil waste, a major agro-residue in tropical countries, into single cell oil (SCO) feedstock for biodiesel production. Copra cake was used as a low-cost renewable substrate without any prior chemical or enzymatic pretreatment for submerged growth of an oleaginous tropical mangrove fungus, Aspergillus terreus IBB M1. The SCO extracted from fermented biomass was converted into fatty acid methyl esters (FAMEs) by transesterification and evaluated on the basis of fatty acid profiles and key fuel properties for biodiesel. The fungus produced a biomass (8.2 g/l) yielding 257 mg/g copra cake SCO with ~98% FAMEs. The FAMEs were mainly composed of saturated methyl esters (61.2%) of medium-chain fatty acids (C12-C18) with methyl oleate (C18:1; 16.57%) and methyl linoleate (C18:2; 19.97%) making up the unsaturated content. A higher content of both saturated FAMEs and methyl oleate along with the absence of polyunsaturated FAMEs with ≥4 double bonds is expected to impart good fuel quality. This was evident from the predicted and experimentally determined key fuel properties of FAMEs (density, kinematic viscosity, iodine value, acid number, cetane number), which were in accordance with the international (ASTM D6751, EN 14214) and national (IS 15607) biodiesel standards, suggesting their suitability as a biodiesel fuel. The low cost, renewable nature, and easy availability of copra cake, its conversion into SCO without any thermochemical pretreatment, and pelleted fungal growth facilitating easier downstream processing by simple filtration make this process cost effective and environmentally favorable.