True Colors Ltd (544531)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, True Colors' revenue was ₹150 Cr (+6.4% year on year, -0.7% on the previous half-year), and net profit ₹16.0 Cr (-27.3% year on year); the operating margin was 16.0%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹150 | +6.4% | -0.7% |
| Operating profit | ₹24.0 | -27.3% | +4.3% |
| Net profit | ₹16.0 | -27.3% | +6.7% |
| EPS (₹) | 6.67 | -41.6% | +11.7% |
| Operating margin | 16.0% | — | — |
📢 Recent Corporate Announcements
True Colors Limited has issued a corrigendum to the notice for its NCLT-convened equity shareholder meeting scheduled for September 28, 2026. The meeting pertains to the proposed Scheme of Amalgamation of Inkia Inks Private Limited with the company. The corrigendum rectifies an inadvertent clerical error by replacing an incorrectly attached compliance report with the Complaint Report dated January 12, 2026, which recorded zero complaints received during the 21-day statutory window. All other terms and the date of the meeting remain unmodified.
- NCLT-convened equity shareholder meeting scheduled on September 28, 2026 at 10:30 AM IST
- Meeting convened per Hon'ble NCLT Ahmedabad Bench order dated August 17, 2026
- Replaces incorrectly referenced report with Complaint Report dated January 12, 2026 as Annexure 11
- Complaint report recorded 0 complaints received directly or forwarded by BSE during 19/12/2025 to 09/01/2026
True Colors Limited has issued a notice convening an NCLT-directed shareholder meeting on Monday, September 28, 2026, to vote on the proposed Scheme of Amalgamation with Inkia Inks Private Limited. The meeting will be held via video conferencing pursuant to the NCLT Ahmedabad Bench order dated August 17, 2026. The cut-off date for eligibility to vote is September 21, 2026, with remote e-voting scheduled from September 25 to September 27, 2026. This merger aligns with the company's vertically integrated model across digital textile inks and consumables.
- NCLT-directed shareholder meeting scheduled for Monday, September 28, 2026, at 10:30 AM IST
- Scheme of Amalgamation between Inkia Inks Private Limited (Transferor) and True Colors Limited (Transferee)
- Cut-off date for voting eligibility set as Monday, September 21, 2026
- Remote e-voting open from September 25, 2026 (09:00 AM IST) to September 27, 2026 (05:00 PM IST)
- BSE Observation Letter previously received on May 14, 2026
True Colors has received an order dated August 17, 2026, from the NCLT Ahmedabad Bench regarding its proposed Scheme of Amalgamation to absorb Inkia Inks Private Limited. The tribunal has directed True Colors to convene meetings of its equity shareholders and 329 unsecured creditors within 45 days. The scheme sets the Appointed Date as April 1, 2026, aiming to achieve backward integration in its digital printing ink manufacturing operations. Meetings for secured creditors and the transferor company's stakeholders were dispensed with based on prior written consents.
- NCLT directed shareholder and unsecured creditor meetings to be convened within 45 days from August 17, 2026
- Appointed date for the amalgamation of Inkia Inks Private Limited is April 1, 2026
- Inkia Inks has a paid-up share capital of Rs 3.00 Cr (30,00,000 shares of Rs 10 each)
- True Colors has a paid-up share capital of Rs 24.65 Cr (2,46,54,600 shares of Rs 10 each) and 329 unsecured creditors
True Colors Ltd has approved the formation of a 50:50 Joint Venture company, proposed to be named 'True Colors Advance Materials Private Limited', with identified partners. The JV will engage in manufacturing, processing, coating, converting, and marketing paper, specialty paper, and allied paper-based materials. The equity subscription will be at Rs 10.00 per share for cash consideration, with incorporation targeted within 60 days. Additionally, the board approved the reappointment of its internal and cost auditors for FY 2026-27 and appointed ALAP & Co. LLP as secretarial auditor for a five-year term.
- Approved formation of 50.00% owned JV company 'True Colors Advance Materials Private Limited'
- Focus on manufacturing, processing, coating, converting, and marketing specialty paper products
- Subscription price fixed at Rs 10.00 per share via cash consideration
- Target incorporation timeline set within 60 days from board approval
- Appointed secretarial auditor for a 5-year tenure covering FY 2026-27 to FY 2030-31
True Colors Ltd's Board has approved the formation of a 50:50 Joint Venture Company, proposed to be named 'True Colors Advance Materials Private Limited'. The JV will focus on manufacturing, processing, coating, converting, and marketing paper, specialty paper, and allied paper-based products. Shares will be subscribed in cash at Rs 10.00 per share, with incorporation targeted within 60 days. The transaction does not involve related-party interests.
- Approved 50.00% shareholding in proposed JV 'True Colors Advance Materials Private Limited'
- Focus on manufacturing, coating, converting, and marketing specialty paper and allied products
- Subscription price fixed at Rs 10.00 per share via cash consideration
- Indicative incorporation timeline set within 60 days from August 17, 2026
True Colors Ltd has announced its participation in the 'Promoter Interaction 2026 - Investor Interaction Series' scheduled for July 18, 2026, in Surat. The event is organized by Finavenue Growth Fund, Torin Wealth Management, and GYR Capital Advisors. Company representatives will engage with investors to discuss business operations, growth strategies, and the industry outlook. The company has explicitly stated that no unpublished price-sensitive information (UPSI) will be disclosed during these interactions.
- Event scheduled for Saturday, July 18, 2026, starting at 11:00 A.M.
- Physical interaction to be held at Marriott Athwalines, Surat, Gujarat
- Organized by 3 financial entities: Finavenue Growth Fund, Torin Wealth Management, and GYR Capital Advisors
- Discussion to focus on business operations and future outlook based on public domain information
Financial Performance
Revenue Growth by Segment
Total revenue reached INR 151.11 Cr in H1 FY26, a 63.2% increase from INR 92.59 Cr in H1 FY25. The Manufacturing division (sublimation paper) grew 47.8% to INR 68 Cr from INR 46 Cr. The Ink business grew 14.3% to INR 40 Cr from INR 35 Cr. The Machine business contributed approximately 26% of total revenue in H1 FY26.
Geographic Revenue Split
Not disclosed in available documents, though the company identifies major textile hubs in India as its primary market.
Profitability Margins
Net Profit Margin improved significantly to 9.71% in H1 FY26 from 2.75% in H1 FY25. The company targets a long-term PAT margin range of 9% to 11%. Gross margins are thinner on machine sales but higher on recurring consumables like ink and paper (13-17% EBITDA range).
EBITDA Margin
EBITDA margin doubled to 15.31% in H1 FY26 compared to 7.65% in H1 FY25. This 766 bps improvement was driven by higher capacity utilization and a favorable product mix toward high-margin consumables and services.
Capital Expenditure
The company invested INR 6 Cr to INR 7 Cr in a new paper coating machine to enhance capacity. This investment is expected to generate an additional INR 60 Cr in annual revenue for the paper division.
Credit Rating & Borrowing
Not disclosed in available documents; however, the company is using IPO proceeds for debt prepayment to improve its credit profile.
Operational Drivers
Raw Materials
Key raw materials include sublimation paper (manufactured in-house), digital printing inks (sourced/imported), and various fabrics for the digital printing service division.
Import Sources
The company imports digital textile printing machines and likely inks from Japan (Konica Minolta) and China (Wuxi Pengda, Hangzhou Maxunion).
Key Suppliers
Major suppliers and OEM partners include Konica Minolta (Japan), Wuxi Pengda (China), and Hangzhou Maxunion – ITTEN (China).
Capacity Expansion
Sublimation paper capacity is being doubled to reach 2 crore meters. A new 6th machine installation provides a production capability of 2 lakh liters per day for associated consumables. Printing division run rates are expected to grow from INR 7 Cr to INR 10 Cr per month.
Raw Material Costs
Raw material costs are managed through vertical integration; 10-12% of in-house sublimation paper is self-consumed for printing services, reducing external procurement costs.
Manufacturing Efficiency
Manufacturing division revenue jumped 50% YoY in H1 FY26 due to optimum utilization of existing facilities. The company is focusing on 100% capacity utilization for its new coating lines in H2 FY26.
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
The company employs a 'razor-and-blade' model where machine installations (even at thin margins) create a locked-in, recurring revenue stream for high-margin inks, paper, and services. Growth will be driven by doubling sublimation paper capacity, expanding the digital printing service run rate to INR 10 Cr/month, and cross-selling to an expanding MSME customer base.
Products & Services
Digital textile printing machines, sublimation paper, digital printing inks, and customized fabric printing services (job-work).
Brand Portfolio
True Colors (own brand and white-labeled Chinese machines), Konica Minolta (authorized dealer).
New Products/Services
Expansion into pigment printing is identified as a future game-changer for the next 5-10 years across all textile sectors.
Market Expansion
Targeting deeper penetration in Indian textile hubs (Surat, etc.) and exploring global expansion opportunities to leverage global certifications.
Market Share & Ranking
Not disclosed in available documents, but claims to be India's most integrated digital textile technology ecosystem.
Strategic Alliances
Dealership agreements with Konica Minolta, Wuxi Pengda, and Hangzhou Maxunion for machine supply and technical support.
External Factors
Industry Trends
The industry is shifting from traditional to digital printing. Digital textile printing currently represents a small but rapidly growing fraction of India's 7,500 crore meter annual fabric production.
Competitive Landscape
Competitors include 8-10 domestic paper manufacturers and established printing industry players like Control Print and Aztec.
Competitive Moat
The moat is built on vertical integration (Machine + Ink + Paper + Service). This 'one-stop-shop' model creates high switching costs for MSME clients who rely on True Colors for both hardware maintenance and essential consumables.
Macro Economic Sensitivity
Highly sensitive to the growth of the Indian textile industry, which produces 7,500 crore meters of fabric annually.
Consumer Behavior
Increasing demand for customized apparel and home décor is driving the shift toward digital printing's short-run capabilities.
Geopolitical Risks
Trade barriers or supply chain disruptions with China could impact the procurement of machines and specialized components.
Regulatory & Governance
Industry Regulations
Compliance with global textile standards (OEKO-TEX) is required for serving export houses and international buyers.
Environmental Compliance
The company holds ISO 14001:2015 (Environmental Management System) and OEKO-TEX Standard 100 certifications.
Risk Analysis
Key Uncertainties
Fluctuations in the machine-to-consumable sales mix can cause quarterly margin volatility of 2-3%.
Geographic Concentration Risk
Operations are heavily concentrated in Gujarat (Surat and Navsari).
Third Party Dependencies
High dependency on Konica Minolta for high-end digital printer technology and parts.
Technology Obsolescence Risk
Rapid shifts in digital printing technology (e.g., the move toward pigment-based inks) require constant reinvestment.
Credit & Counterparty Risk
The 90-day credit cycle for MSME clients poses a risk to receivables quality if the textile sector faces a downturn.
