True Colors Limited Shines Bright in H1 FY26 with Robust Growth and Strategic Expansion

True Colors Limited, a prominent player in digital textile printing solutions, has reported an exceptional performance for the first half of fiscal year 2026 (H1 FY26). The company's unaudited financial results, approved by the Board of Directors on November 11, 2025, showcase robust growth across all key metrics. Total income for H1 FY26 surged by an impressive 63.27% year-on-year, reaching INR 151.62 crore, up from INR 92.87 crore in H1 FY25. This remarkable top-line growth was complemented by an even more significant improvement in profitability, with EBITDA skyrocketing by 226.84% to INR 23.22 crore and Net Profit soaring by an astounding 475.53% to INR 14.72 crore. These figures underscore the effectiveness of True Colors' integrated operating model and expanding distribution network in a dynamic market.

The company's growth in H1 FY26 was broadly distributed across its three core business verticals. The machinery and ink supply segment, which includes import and distribution, contributed INR 82.82 crore, representing 54.81% of the total revenue. Sublimation paper manufacturing and supply accounted for INR 28.95 crore, or 19.16% of revenue, while digital textile printing services brought in INR 39.34 crore, making up 26.03% of the total. This balanced growth highlights the company's ability to capitalize on diverse revenue streams and its strategic focus on building a comprehensive ecosystem for digital textile printing. The management noted a higher contribution from high-end digital printer installations compared to the previous year, which was more weighted towards consumables and printing. This shift is crucial as machinery installations expand the future recurring revenue base for inks, sublimation paper, spares, and service support, strengthening long-term revenue visibility and customer stickiness.

Strategic Initiatives and Market Outlook

True Colors Limited is not just resting on its laurels; it is actively pursuing several strategic initiatives to sustain its growth trajectory. The company is expanding its geographic footprint across key textile hubs in India, such as Ludhiana, Panipat, Tirupur, and Erode, while also evaluating international markets. This expansion targets apparel exporters, private labels, and fast-fashion brands seeking end-to-end digital printing solutions. Operational efficiency and process automation are also key focus areas, with restructured teams, KPI implementation, digitized workflows, and the deployment of internal TURBO software for the sublimation paper unit already yielding improved margins and reduced lead times.

Deepening engagement with existing clients through cross-selling across verticals, bundled offerings, and robust after-sales service is another pillar of their strategy. Furthermore, the company is optimizing its working capital and reducing debt, with IPO proceeds earmarked for debt prepayment to improve its credit profile and free up capital for core reinvestment. A significant step towards sustainability is the installation of a 1-megawatt solar rooftop power plant, expected to be operational in the next couple of months, which will generate 30% to 40% of the company's daily energy consumption, leading to substantial cost savings and a reduced environmental footprint.

Expanding Product Portfolio and Market Leadership

In a strategic move to bolster its product portfolio, True Colors Limited recently announced a distribution agreement with ITACA (Innovaciones Técnicas Aplicadas a Cerámicas Avanzadas S.A.U.), a Spain-based leader in digital ink and technology solutions. Under this partnership, True Colors will be ITACA's non-exclusive distributor for India, handling the distribution, marketing, and after-sales support for ITACA's digital textile printing consumables. This collaboration will enable True Colors to import and locally stock ITACA's pigment and dye-based digital inks, pretreatment, and post-treatment chemistries, enhancing product compatibility within its machine-paper-ink ecosystem and ensuring steady recurring revenue from consumables.

The digital textile printing market in India is projected to grow at a CAGR of approximately 13% between 2023 and 2033. This growth is driven by increasing adoption of dye-sublimation for polyester applications, sustainability mandates, shorter production cycles, and the rise of D2C and e-commerce brands. True Colors Limited, with its integrated solutions and strategic partnerships, is well-positioned to capture this expanding market. The company's leadership team, with over a decade of industry experience, is focused on workflow management, execution, and business development, ensuring a strong foundation for future growth.

Conclusion

True Colors Limited's H1 FY26 performance reflects a company in a strong growth phase, driven by strategic expansion, operational efficiencies, and a robust integrated business model. The focus on building a recurring revenue base through machine installations and high-margin consumables, coupled with initiatives in green energy and debt reduction, positions True Colors for sustained profitability and market leadership in India's evolving digital textile printing landscape. The management's clear vision and proactive approach to market trends instill confidence in the company's long-term value creation potential.