True Colors Limited reports Rs 27.1666 crore operating cash inflow

True Colors Limited generated Rs 27.1666 crore of net cash from operating activities in the period ended September 30, 2026, compared with an Rs 34.9908 crore outflow in the year ended March 31, 2026. The turnaround came despite Rs 18.5464 crore absorbed by inventories and Rs 4.9038 crore by trade receivables.

How did True Colors' operating cash flow change?

True Colors reported an Rs 27.1666 crore operating cash inflow for the six months ended September 30, 2026, after an Rs 34.9908 crore operating cash outflow in the year ended March 31, 2026. The reporting periods differ in length, with the latest statement covering six months and the comparator covering a full year, but the filing shows a change from cash use to cash generation.

Profit before extraordinary items and tax was Rs 26.8495 crore in the September 2026 period, against Rs 36.9788 crore in the year ended March 2026. After finance costs, depreciation and amortisation, unrealised foreign-exchange movements, interest income and other non-cash items, cash before working-capital movements was Rs 32.7720 crore, compared with Rs 47.2867 crore in the earlier year.

The main difference was the scale of working-capital cash use. Working-capital adjustments used Rs 5.6054 crore in the six months to September 30, 2026, versus Rs 74.8711 crore in the year ended March 31, 2026. True Colors also recorded no income tax payment or refund in the latest period, while the earlier year included Rs 7.4063 crore of income taxes paid.

What working-capital movements affected True Colors' cash flow?

True Colors' increase in inventories used Rs 18.5464 crore of cash in the period ended September 30, 2026, while the increase in trade receivables used another Rs 4.9038 crore. These outflows were partly offset by an Rs 20.1816 crore cash inflow from the increase in trade payables and an Rs 1.3807 crore inflow relating to other current assets.

Inventory on the consolidated balance sheet rose to Rs 61.5371 crore at September 30, 2026, from Rs 42.9907 crore at March 31, 2026. Trade receivables increased to Rs 116.0259 crore from Rs 111.1221 crore over the same dates. The balance-sheet movements correspond with the cash-flow statement's inventory and receivables outflows, although cash-flow movements also reflect transactions during the period.

Trade payables due to micro enterprises and small enterprises increased to Rs 43.6927 crore at September 30, 2026, from Rs 21.0372 crore at the March year-end. Payables to creditors other than micro enterprises and small enterprises fell to Rs 20.4820 crore from Rs 22.9685 crore, while the cash-flow statement records the aggregate trade-payables movement as an Rs 20.1816 crore inflow.

Provisions used Rs 3.5800 crore of cash in the September period, and other current liabilities and provisions used Rs 0.1375 crore. In the year ended March 31, 2026, trade receivables alone absorbed Rs 54.5212 crore, compared with Rs 4.9038 crore in the latest six-month period, which was the largest identified reduction in working-capital cash use.

How did investing and financing activities affect True Colors' cash balance?

True Colors reported an Rs 13.1371 crore net cash outflow from investing activities and an Rs 6.3359 crore net financing cash inflow in the period ended September 30, 2026. Together with the Rs 27.1666 crore operating inflow, those movements produced an Rs 20.3654 crore increase in cash and cash equivalents.

The investing section includes an Rs 32.8269 crore negative entry against proceeds from sales of property, plant and equipment, an Rs 23.4237 crore positive entry against purchase of term deposits, and an Rs 3.9529 crore negative entry against cash receipts from repayment of advances and loans. Because the signs displayed against these line labels do not follow their descriptions, the filing supports the reported net investing outflow of Rs 13.1371 crore but does not provide a clear basis to characterise each entry beyond its stated label and sign.

Financing activities included Rs 8.5145 crore of proceeds from borrowings and Rs 2.1786 crore of interest paid, resulting in the Rs 6.3359 crore inflow. The latest half-year statement shows no share-issue proceeds and no borrowing repayments, whereas the year ended March 31, 2026 included Rs 100.4912 crore of proceeds from issuing shares and Rs 93.6122 crore of net financing cash inflow.

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

True Colors ended September 30, 2026 with Rs 21.6356 crore of cash and cash equivalents, compared with Rs 1.2702 crore at March 31, 2026. The Rs 20.3654 crore increase matches the net movement in the consolidated cash-flow statement, which reported no exchange-rate effect on cash during either reported period.

Current assets rose to Rs 224.9386 crore at September 30, 2026 from Rs 179.3016 crore at March 31, 2026. Alongside the cash increase, short-term loans and advances rose to Rs 20.9832 crore from Rs 17.0883 crore, while other current assets declined to Rs 2.3035 crore from Rs 3.7912 crore.

Non-current assets increased to Rs 114.2108 crore from Rs 107.3566 crore over the same dates. Property, plant and equipment rose to Rs 97.2204 crore from Rs 79.6087 crore, and capital work-in-progress increased to Rs 13.9581 crore from Rs 2.1138 crore, while non-current investments fell to Rs 1.1248 crore from Rs 23.9627 crore.

The September 2026 figures are unaudited consolidated results approved by the board on October 30, 2026. True Colors said its joint venture, True Colors Advanced Material Private Limited, was incorporated on September 15, 2026 and had no assets, liabilities, income or expenditure at September 30, so the standalone and consolidated results for the period were identical.

Conclusion

True Colors moved to an Rs 27.1666 crore operating cash inflow in the six months ended September 30, 2026 after an Rs 34.9908 crore outflow in the year ended March 31, 2026. Inventory and receivables still absorbed Rs 23.4502 crore of cash, but the Rs 20.1816 crore trade-payables movement, lower overall working-capital use and no tax payment supported the reported increase in cash to Rs 21.6356 crore.

The next reported period will show whether operating cash generation continues while inventories stood at Rs 61.5371 crore and receivables at Rs 116.0259 crore at September 30, 2026. True Colors also disclosed a Rs 5.00 lakh investment in its joint venture in October 2026, after the reporting date, which was not reflected in the September half-year consolidated results.