The resulting text graphics object is only one object, so you can't adjust the color through handle graphics without affecting all of the rows. But if it's possible for you, you can specify the color directly in the strings. To do this, you'll probably need to represent your strings as a cell array instead, so they can have different colors.
M = {'\color{red}Line 1';'\color{blue}Line 2';'\color[rgb]{.6 .8 .2}Line 3'};
text(1, 1, M);
The reference for other inline string markup is found on this doc page, in the 'String' property: http://www.mathworks.com/help/matlab/ref/text_props.html