True Colors Limited filed a regulatory disclosure pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, announcing its financial results for the half year ended September 30th, 2026.

Financial Performance (H1 FY27)

  • Revenue from Operations: ₹183.01 crore, representing a 21.11% year-on-year (YoY) growth
  • EBITDA Margins: 17.67%, representing a 240 basis points (BPS) expansion YoY
  • Profit After Tax (PAT): ₹21.09 crore, representing a 43.25% YoY growth
  • Gross Margin: 30.2%, representing a 405 BPS expansion YoY
  • EBITDA: ₹32.34 crore, representing a 40.1% YoY growth
  • Operating Cash Flow: ₹27.16 crore (compared to an outflow of ₹10.90 crore in H1 FY26)
  • Cash and Bank Balances: Increased to ₹21.64 crore from ₹1.27 crore at the start of the year

Operational Volumes (H1 FY27)

  • Paper Volume: 10 crore metres, representing 42% YoY growth
  • Ink Volume: 689 tonnes, representing 19.41% YoY growth
  • Fabric Volume: 100 lakh metres, representing a (10.97)% YoY decline
  • New Machine Installations: 56 units, representing 36.58% YoY growth
  • Total Installed Machine Base: 956 machines, representing 11% growth over the year

Product Mix & Business Segments

  • Inks and paper contributed 56.2% of total revenue, up from 48.7% a year ago
  • The company describes itself as "India's only fully integrated digital printing ecosystem company" operating across machinery distribution, consumables manufacturing, and digital print services

Capacity & Utilization

  • Expanded sublimation paper coating capacity of 2 crore metres per month is running at optimum utilization

Strategic Initiatives & Guidance

  • Ink Manufacturing: Backward integrating into ink manufacturing under the INKIA brand, with first phase of 150 tonnes per month capacity planned by the end of FY27
  • Paper Joint Venture: Establishing a 50:50 joint venture for upstream integration into base paper with planned capacity of 8-10 crore metres per month
  • Market Opportunity: Management noted that India imports 70-75% of its lower GSM sublimation paper, presenting an import substitution opportunity
  • Growth Guidance: Performance was in line with company's guidance of 20%+ revenue growth

Management Commentary

Mr. Sanjay Desai, Managing Director, commented that:

  • Growth was volume-led with sublimation paper volumes more than doubling to 9.97 crore metres
  • Ink volumes grew 22% to 689 tonnes
  • Printed fabric volumes rose 7% to 99.71 lakh metres
  • The recurring business model converts every machine installation into recurring ink and paper customers
  • The company is confident of sustaining strong performance due to compounding recurring base, rising share of consumables, and backward integration initiatives

Forward-Looking Statements

The document contains standard forward-looking statement disclaimers regarding government actions, economic developments, technological risks, and other factors that could cause actual results to differ from expectations.