True Colors Limited shifts borrowing mix as fixed assets rise

True Colors Limited reported a marked change in its debt maturity profile at September 30, 2026: long-term borrowings rose to Rs 38.8585 crore from Rs 8.1493 crore, while short-term borrowings fell to Rs 15.6186 crore. Property, plant and equipment and capital work-in-progress together increased to Rs 111.1785 crore from Rs 81.7225 crore.

Why did True Colors' borrowing mix change?

True Colors reported the change in borrowing mix but did not state its reason, lender details, interest rates, maturities or specific use of proceeds. Long-term borrowings increased by Rs 30.7092 crore during the six months to September 30, 2026, while short-term borrowings decreased by Rs 22.1947 crore from the March 31, 2026 balance.

The shift did not reduce total reported borrowings. Long-term and short-term borrowings combined rose to Rs 54.4771 crore at September 30 from Rs 45.9626 crore at March 31, an increase of Rs 8.5145 crore. The balance-sheet movement therefore reflects both a higher overall borrowing balance and a greater reported share of longer-term debt.

True Colors' total non-current liabilities rose to Rs 42.6450 crore from Rs 10.8602 crore. Alongside long-term borrowings, deferred tax liabilities increased to Rs 2.0952 crore from Rs 1.2128 crore and long-term provisions rose to Rs 1.6913 crore from Rs 1.4981 crore; other long-term liabilities were nil in both periods.

How much did True Colors' fixed-asset base increase?

True Colors' property, plant and equipment, or PPE, increased to Rs 97.2204 crore at September 30, 2026 from Rs 79.6087 crore at March 31, 2026. The Rs 17.6117 crore increase was accompanied by a rise in PPE capital work-in-progress, or CWIP, to Rs 13.9581 crore from Rs 2.1138 crore.

Combined PPE and CWIP consequently increased by Rs 29.4560 crore to Rs 111.1785 crore. Intangible assets also rose from Rs 1.78 lakh to Rs 8.90 lakh, while the filing did not identify the underlying CWIP projects, their expected completion dates or the assets being constructed.

True Colors' total non-current assets rose by a smaller Rs 6.8542 crore to Rs 114.2108 crore because non-current investments declined sharply. Those investments fell to Rs 1.1248 crore from Rs 23.9627 crore, a decrease of Rs 22.8379 crore, while other non-current assets increased to Rs 1.8185 crore from Rs 1.6536 crore.

What else changed in True Colors' balance sheet?

True Colors' total assets increased by Rs 52.4912 crore to Rs 339.1494 crore at September 30, 2026. Current assets accounted for Rs 45.6370 crore of that increase, reaching Rs 224.9386 crore, while non-current assets stood at Rs 114.2108 crore.

Inventories rose to Rs 61.5371 crore from Rs 42.9907 crore, trade receivables increased to Rs 116.0259 crore from Rs 111.1221 crore, and cash and cash equivalents reached Rs 21.6356 crore from Rs 1.2702 crore. Short-term loans and advances also increased to Rs 20.9832 crore from Rs 17.0883 crore, while current investments declined to Rs 2.4533 crore from Rs 3.0391 crore.

True Colors' shareholders' funds increased to Rs 208.2237 crore from Rs 187.1380 crore. Share capital remained Rs 24.6546 crore, while reserves and surplus rose to Rs 183.5691 crore from Rs 162.4834 crore; the company reported net profit of Rs 21.0858 crore for the half year ended September 30, 2026.

Current liabilities were broadly unchanged at Rs 88.2807 crore, compared with Rs 88.6600 crore at March 31. Dues to micro enterprises and small enterprises increased to Rs 43.6927 crore from Rs 21.0372 crore, whereas short-term borrowings and dues to other creditors declined to Rs 15.6186 crore and Rs 20.4820 crore, respectively.

What do True Colors' cash flows show about the period?

True Colors generated Rs 27.1666 crore of cash from operating activities for the period ended September 30, 2026. The cash-flow statement recorded a Rs 5.6054 crore working-capital outflow, including a Rs 18.5464 crore increase in inventories and a Rs 4.9038 crore increase in trade receivables.

True Colors used Rs 13.1371 crore in investing activities and generated Rs 6.3359 crore from financing activities during the half year. The financing section recorded Rs 8.5145 crore of proceeds from borrowings and Rs 2.1786 crore of interest paid, but it did not connect these proceeds specifically to PPE, CWIP or working-capital items.

Cash and cash equivalents increased by Rs 20.3654 crore during the period, from Rs 1.2702 crore at its start to Rs 21.6356 crore at September 30. The September 2026 consolidated results were unaudited, while the March 2026 comparative year-end balances were audited.

How did True Colors' operating results change?

True Colors reported revenue from operations of Rs 183.0075 crore for the half year ended September 30, 2026, compared with Rs 151.1136 crore in the half year ended September 30, 2025. Net profit increased to Rs 21.0858 crore from Rs 14.7163 crore over the same year-on-year comparison.

Finance costs declined to Rs 2.1950 crore from Rs 2.4691 crore despite the higher closing total borrowing balance. Depreciation and amortisation expense increased to Rs 3.2996 crore from Rs 1.9849 crore, reported alongside the increase in PPE, although the filing does not quantify the portion linked to recently added assets.

True Colors disclosed one reportable segment under Accounting Standard 17, covering dyes. Its standalone and consolidated results were identical for the September 2026 half year because joint venture True Colors Advanced Material Private Limited, incorporated on September 15, 2026, had no assets, liabilities, income or expenditure at the reporting date.

Conclusion

True Colors reported a larger asset base alongside a rebalanced debt structure at September 30, 2026. PPE and CWIP increased by Rs 29.4560 crore, long-term borrowings rose by Rs 30.7092 crore, and short-term borrowings declined by Rs 22.1947 crore, while total borrowings increased by Rs 8.5145 crore.

The filing leaves the individual CWIP projects, their completion timetable and the intended use of additional long-term borrowings undisclosed. It also records a Rs 5 lakh investment in True Colors Advanced Material Private Limited in October 2026 after the reporting date, following the joint venture's incorporation without assets or operating activity as of September 30.