True Colors - True Colors

📊 BSE: 544531 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 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.