Revised Investor Presentation on the Financial Performance of the Company for the half year and year ended March 31, 2026
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True Colors Ltd filed a revised investor presentation for H2 and FY26, correcting an inadvertent error in the earlier version. The only change was a color swap between PAT Margin (%) and EBITDA Margin (%) in a chart on Slide 34. No financial figures were altered. The underlying presentation shows FY26 revenue of INR 301.55 Cr (up 29% YoY), EBITDA of INR 46.98 Cr (margin 15.58%), and PAT of INR 31.16 Cr (margin 10.33%). H2 FY26 margins declined year-on-year, with EBITDA margin at 15.89% (down 772 bps) and PAT margin at 10.93% (down 446 bps). The company cited working capital pressure from MSME vendor payment transitions and advance payment terms for Konica Minolta inks as near-term headwinds. Management is pursuing in-house ink manufacturing (INKIA brand) as a multi-year strategy to improve margins, targeting 150 TPM in FY27, 500 TPM in FY28, and 1,000 TPM long-term. The installed machine base stands at 900+ units generating recurring consumables revenue.
The error correction is cosmetic and has no financial impact. However, the presentation reveals near-term margin pressure in H2 FY26 and working capital challenges, while highlighting a multi-year roadmap for margin improvement through in-house ink manufacturing. Investors should focus on the 50.25% recurring revenue ratio and the compounding flywheel model rather than the chart revision.