Board of Directors of the Company in their meeting held on May 20, 2026, have approved the Standalone Audited Financial Results for the half year and year ended on March 31, 2026
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True Colors Ltd reported full year revenue of Rs 2333.66 Lakhs for FY2025-26, up from Rs 1511.20 Lakhs in the prior year (H2 only, as the company listed via IPO in September 2025). Profit After Tax (PAT) stood at Rs 1644.00 Lakhs for the half year, with a healthy net profit margin. The company achieved an unmodified (clean) audit opinion from Lakhankiya & Dosi LLP with no qualifications. However, the operating cash flow for the year turned sharply negative at Rs -3499.08 Lakhs, driven by a large increase in trade receivables (up Rs 54.52 Lakhs) and inventory buildup (up Rs 7.08 Lakhs), raising concerns about cash conversion despite profitability. The company raised Rs 127.96 Crore via IPO in September 2025, of which Rs 83.86 Crore has been utilised (Rs 20 Crore remains in fixed deposits for working capital, Rs 5 Crore for general corporate purposes). No deviation in IPO fund utilisation was reported.
Positive that the company is profitable and received a clean audit, but the negative operating cash flow is a red flag for shareholders as it suggests the company is collecting cash slowly or building inventory. The IPO proceeds are being deployed as planned.