True Colors H1 FY27 EBITDA rises 40% as margin expands

True Colors Limited, referred to here as True Colors, reported H1 FY27 revenue from operations of Rs 183.01 crore, up 21.11% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 40.12% to Rs 32.34 crore. EBITDA margin widened by 240 basis points to 17.67%, and operating cash flow changed to a Rs 27.16 crore inflow from a Rs 10.90 crore outflow.

How did True Colors perform in H1 FY27?

True Colors increased revenue from operations to Rs 183.01 crore in H1 FY27 from Rs 151.11 crore in H1 FY26, a 21.11% increase, and from Rs 150.43 crore in H2 FY26, a sequential increase of 21.66%. Total income was Rs 183.29 crore, including Rs 0.28 crore of other income, compared with total income of Rs 151.62 crore in H1 FY26.

EBITDA was Rs 32.34 crore, compared with Rs 23.08 crore in H1 FY26 and Rs 23.90 crore in H2 FY26. The resulting 40.12% year-on-year and 35.31% sequential EBITDA growth exceeded the respective revenue growth rates of 21.11% and 21.66%.

Profit after tax (PAT) rose to Rs 21.09 crore from Rs 14.72 crore a year earlier and Rs 16.44 crore in H2 FY26. PAT increased 43.25% year on year and 28.26% sequentially, while basic earnings per share rose 10.18% year on year to Rs 8.55.

Why did True Colors' H1 FY27 margin increase?

True Colors' EBITDA margin rose to 17.67% in H1 FY27 from 15.27% in H1 FY26 and 15.89% in H2 FY26. This was an increase of 240 basis points year on year and 178 basis points sequentially, where 100 basis points equal one percentage point.

Gross margin increased to 30.19% from 26.13% in H1 FY26 and 28.25% in H2 FY26. Cost of goods sold, or COGS, rose 12.86% year on year to Rs 121.34 crore, below the 21.11% increase in revenue, while gross profit rose 39.89% to Rs 55.24 crore.

Operating expenses increased 41.13% year on year to Rs 29.48 crore, from Rs 20.89 crore, but were 14.63% higher than Rs 25.72 crore in H2 FY26. Finance cost declined to Rs 2.20 crore from Rs 2.47 crore a year earlier, while depreciation rose 66.65% to Rs 3.30 crore.

PAT margin reached 11.52%, compared with 9.74% in H1 FY26 and 10.93% in H2 FY26. Profit before tax rose 43.81% year on year to Rs 26.85 crore, as EBITDA increased by Rs 9.26 crore and finance cost fell by Rs 0.27 crore despite the Rs 1.32 crore increase in depreciation.

Which business verticals drove True Colors' revenue growth?

True Colors' paper vertical was the largest reported revenue contributor in H1 FY27 at Rs 51.81 crore, up 79.04% from Rs 28.94 crore in H1 FY26. Paper's share of total revenue increased to 28.31% from 19.15%, and paper volume processed rose to 10 crore metres from 5 crore metres.

Fabric revenue increased 24.86% year on year to Rs 49.12 crore, although it was below Rs 49.75 crore in H2 FY26. Inks revenue rose 7.22% to Rs 41.76 crore, while ink volume sold increased to 689 tonnes from 563 tonnes in H1 FY26 and 577 tonnes in H2 FY26.

Machines revenue declined 18.41% year on year to Rs 30.96 crore from Rs 37.95 crore, but recovered from Rs 22.99 crore in H2 FY26. New machine installations were 56, below 68 in H1 FY26 but above 41 in H2 FY26, taking the cumulative installed base to 956 from 859 a year earlier.

The recurring revenue ratio, defined by the presentation as consumables as a percentage of total revenue, increased to 56% from 49% in H1 FY26 and 52% in H2 FY26. Other vertical revenue was Rs 9.35 crore in H1 FY27, compared with Rs 5.93 crore a year earlier.

Did True Colors generate positive operating cash flow in H1 FY27?

True Colors generated cash flow from operating activities of Rs 27.16 crore in H1 FY27, reversing an outflow of Rs 10.90 crore in H1 FY26. The presentation also reports an operating cash outflow of Rs 34.99 crore for FY26, placing the first-half inflow after a negative full-year operating cash-flow result.

Investing cash flow was an outflow of Rs 13.14 crore in H1 FY27, compared with an outflow of Rs 21.65 crore in H1 FY26. Financing cash flow was an inflow of Rs 6.34 crore, below the Rs 149.88 crore inflow in H1 FY26, and net cash flow was an inflow of Rs 20.37 crore versus Rs 117.33 crore.

Cash and bank balances were Rs 21.64 crore on 30 September 2026, compared with Rs 1.27 crore at 31 March 2026. The H1 FY27 cash-flow statement identifies Rs 1.27 crore as opening cash and Rs 21.64 crore as closing cash.

What changed in True Colors' balance sheet by September 2026?

True Colors' total assets and total equity and liabilities increased to Rs 339.15 crore on 30 September 2026 from Rs 286.66 crore at 31 March 2026. Net worth rose to Rs 208.22 crore from Rs 187.13 crore, as other equity increased to Rs 183.57 crore from Rs 162.48 crore while equity share capital remained Rs 24.65 crore.

Long-term borrowings increased to Rs 38.86 crore from Rs 8.15 crore, while short-term borrowings declined to Rs 15.62 crore from Rs 37.81 crore. Trade payables rose to Rs 68.54 crore from Rs 48.51 crore, and other current liabilities increased to Rs 4.12 crore from Rs 2.34 crore.

Property, plant and equipment increased to Rs 97.31 crore from Rs 79.63 crore, while capital work-in-progress rose to Rs 13.96 crore from Rs 2.11 crore. Inventories grew to Rs 61.54 crore from Rs 42.99 crore, trade receivables increased to Rs 116.03 crore from Rs 111.12 crore, and cash and bank balances rose to Rs 21.64 crore from Rs 1.27 crore.

Conclusion

True Colors delivered H1 FY27 profit growth that outpaced revenue growth, supported by a 405-basis-point year-on-year increase in gross margin and a 240-basis-point expansion in EBITDA margin. Paper revenue, higher ink volumes and a 56% recurring revenue ratio accompanied the Rs 27.16 crore operating cash inflow, while machine revenue remained below its H1 FY26 level.

The unresolved balance-sheet movements disclosed at 30 September 2026 are the next items to watch. Long-term borrowings had increased to Rs 38.86 crore, trade payables to Rs 68.54 crore, and receivables to Rs 116.03 crore, while capital work-in-progress rose to Rs 13.96 crore and new machine installations were 56 in H1 FY27.