True Colors Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 16 Jul 2026 | Industrial Manufacturing | Market Cap: ₹378 Cr
The company targets a 30% year-on-year revenue growth conservatively. True Colors Limited expects a conservative year-on-year revenue growth of around 30% driven by enhanced production capacities and market expansion.
From True Colors Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹152
Market Cap
₹378 Cr
P/E Ratio
12.1
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📊 Revenue & Sales Performance
- →The company targets a 30% year-on-year revenue growth conservatively.
- →H2 will focus on maximizing capacity utilization in both paper and printing divisions.
- →Expansion includes doubling paper production capacity from 1 crore to 2 crore meters monthly.
- →Increased machine installations, targeting 90-100 machines by year-end (up from 16 machines in H1).
- →Growth driven by increased adoption of viscose fabric and government subsidies (up to 35%) boosting large machine investments.
- →Expect better market conditions in textiles from Q3 onward, growing the printing business.
- →Strategic initiatives for backward and forward integration to scale growth further.
- →Recurring revenue streams from ink, paper, and consumables linked to machine installations to drive sustained growth.
- →Anticipates expanding fabric export business and strengthening partnerships with Indian and international buyers.
📈 Profitability & Margins
- →True Colors Limited expects a conservative year-on-year revenue growth of around 30% driven by enhanced production capacities and market expansion.
- →Focus on achieving maximum utilization of the doubled paper manufacturing capacity (1 crore to 2 crore meters monthly) and increasing printing business capacity and utilization.
- →EBITDA margins are targeted in the range of 13-16%, with PAT margins around 9-11%, aiming to maintain stable profitability despite some margin fluctuations due to higher machine sales.
- →Machine sales, although low margin, build a recurring revenue base through ink, paper, and spare parts, supporting future earnings growth.
- →Working capital and financial strength have been enhanced by full repayment of term loans, allowing flexible funding for expansions.
- →Strategic investments in backward and forward integrations and green energy are expected to sustain and accelerate long-term earnings growth.
- →Internal targets align with sustaining growth over 3-5 years based on a 30% growth trajectory.
🏗️ Capital Expenditure Plans
- →The company has expanded its paper manufacturing capacity from 1 crore meters to 2 crore meters per month, involving a capex of approximately INR 6-7 crores.
- →This expansion is expected to generate an additional revenue of around INR 60 crores annually from the paper division.
- →In printing, capacity has been expanded by around 15%, including installation of two new machines and auxiliary machines, expected to be operational within one to two months.
- →A 1 megawatt rooftop solar power plant is operational, generating about 3,500 to 4,000 units per day; an additional 4,000 units capacity is being added with commissioning expected in two months, aiming to cover 30-40% of energy consumption.
- →The company is focusing on backward and forward integration to build a sustainable, vertically integrated digital textile technology ecosystem, with continued investments in green energy and capacity enhancement aligned with a 3-5 year growth vision.
💰 Fundraising & Capital Structure
- →True Colors Limited has fully repaid its bank term loans, resulting in zero finance cost from term loans currently.
- →The clean balance sheet and strong creditworthiness provide flexibility to raise funds whenever required for future infrastructure or expansion.
- →No specific ongoing or imminent fundraising through debt or equity was mentioned in the transcript.
- →The company is exploring new opportunities and may raise funds as needed to overcome capital and bank funding limitations for upcoming expansions.
- →Focus remains on internal growth, capacity utilization, green energy investments, and backward/forward integration rather than immediate fundraising.
📋 Order Book & Pipeline
- →The company currently has 8 machine orders in the pipeline, worth around INR 9 crores.
- →By the end of the year, True Colors Limited expects to have installed about 90 to 100 machines in total.
- →The majority of these machines are related to the printing and paper divisions, aligned with capacity expansions and market demand.
- →There are already many deals ongoing in the pipeline, signaling strong demand for machines, especially in viscose printing.
- →Focus in H2 includes maximizing utilization of doubled paper plant capacity and enhanced printing facilities.
Key Metrics
Frequently Asked Questions
What were True Colors Ltd Q2 FY26 results?
The company targets a 30% year-on-year revenue growth conservatively. True Colors Limited expects a conservative year-on-year revenue growth of around 30% driven by enhanced production capacities and market expansion.
What is True Colors Ltd share price analysis?
True Colors Ltd currently shows a neutral. The stock trades at a P/E of 12.1 with a market cap of ₹378 Cr. Investors should review the full earnings analysis for detailed insights.
Is True Colors Ltd planning capital expenditure?
The company has expanded its paper manufacturing capacity from 1 crore meters to 2 crore meters per month, involving a capex of approximately INR 6-7 crores.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.