Results - Analysis
Tenneco Clean Air India As on : 06-Aug-26  09:52

On consolidated basis

Quarter ended June 2026 compared with Quarter ended June 2025.

Net sales (including other operating income) of Tenneco Clean Air India has increased 20.16% to Rs 1544.75 crore.''Operating profit margin has declined from 17.80% to 15.98%, leading to 7.87% rise in operating profit to Rs 246.89 crore.''Raw material cost as a % of total sales (net of stock adjustments) increased from 63.76% to 65.15%. ''Purchase of finished goods cost rose from 0.82% to 1.27%. ''Employee cost decreased from 6.39% to 6.11%. ''Other expenses rose from 11.42% to 11.82%. ''

Other income fell 71.89% to Rs 8.66 crore.''PBIDT fell 1.59% to Rs 255.55 crore.''Provision for interest rose 18.03% to Rs 8.38 crore.''

PBDT fell 2.15% to Rs 247.17 crore.''Provision for depreciation rose 9.42% to Rs 27.76 crore.''

Profit before tax down 3.44% to Rs 219.41 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was expense of Rs 54.17 crore, compared to Rs 59.13 crore.''Effective tax rate was 24.69% compared to 26.02%.

Minority interest decreased 25.93% to Rs 0.20 crore.''Net profit attributable to owners of the company decreased 1.66% to Rs 165.04 crore.''

Promoters' stake was 74.79% as of 30 June 2026 ,compared to 100.00% as of 30 June 2025 .''

Full year results analysis.

Net sales (including other operating income) of Tenneco Clean Air India has increased 10.50% to Rs 5403.98 crore.''Operating profit margin has jumped from 16.67% to 17.13%, leading to 13.52% rise in operating profit to Rs 925.47 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 65.12% to 64.28%. ''Purchase of finished goods cost rose from 0.71% to 0.86%. ''Employee cost increased from 6.10% to 6.20%. ''Other expenses rose from 11.38% to 11.63%. ''

Other income rose 43.71% to Rs 58.95 crore.''PBIDT rose 14.97% to Rs 984.42 crore.''Provision for interest rose 65.61% to Rs 33.57 crore.''Loan funds rose to Rs 51.50 crore as of 31 March 2026 from Rs 19.69 crore as of 31 March 2025.''Inventories rose to Rs 338.38 crore as of 31 March 2026 from Rs 277.73 crore as of 31 March 2025.''Sundry debtors were lower at Rs 634.83 crore as of 31 March 2026 compared to Rs 687.23 crore as of 31 March 2025.''Cash and bank balance rose to Rs 571.44 crore as of 31 March 2026 from Rs 286.23 crore as of 31 March 2025.''Investments stood at Rs 0.33 crore as of 31 March 2026 to Rs 0.33 crore as of 31 March 2025.''

PBDT rose 13.74% to Rs 950.85 crore.''Provision for depreciation rose 4.85% to Rs 108.17 crore.''Fixed assets increased to Rs 639.38 crore as of 31 March 2026 from Rs 611.65 crore as of 31 March 2025.''Intangible assets declined from Rs 1.28 crore to Rs 0.81 crore.''

Profit before tax grew 14.99% to Rs 842.68 crore.''Share of profit/loss were nil in both the periods.''Provision for tax was expense of Rs 211.15 crore, compared to Rs 179.67 crore.''Effective tax rate was 25.89% compared to 24.52%.

Minority interest decreased 27.78% to Rs 0.78 crore.''Net profit attributable to owners of the company increased 9.33% to Rs 603.58 crore.''

Equity capital stood at Rs 403.60 crore as of 31 March 2026 to Rs 403.60 crore as of 31 March 2025.''Per share face Value remained same at Rs 10.00.''

Promoters' stake was 74.79% as of 31 March 2026

Cash flow from operating activities increased to Rs 1,429.48 crore for year ended March 2026 from Rs 562.39 crore for year ended March 2025.''Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 115.03 crore, compared to Rs 64.78 crore during the year ended March 2025.''

Other Highlights

In Q1 FY27, Value-added Revenue (VAR) grew 18.4% YoY. Clean Air & Powertrain Solutions segment grew 9.6% YoY, and Advanced Ride Technologies segment grew 27.9% YoY.

EBITDA Margin in Q1 FY 2027 was affected by significant commodity increases due to the current geopolitical situation and the cost of listing.

In Q1 FY27, the company expanded the DCx Da Vinci suspension footprint through multiple new application wins across existing customers, further reinforcing leadership position in the ART segment. Additionally, four new customers were added in 2026, and three models for DCx applications, further strengthening and diversifying customer base.

The company also secured multiple new program nominations from leading passenger and commercial vehicle OEMs, covering ignition, hot-end, cold-end, and pipe assembly applications.

Management Comments :
Arvind Chandra, Whole-Time Director and CEO, Tenneco India, said: 'Our strong start to FY2027 reflects the resilience of our diversified business model, disciplined execution, and continued focus on delivering technology-led solutions to our customers. During the quarter, we delivered strong double-digit Value-Added Revenue growth, outpacing growth in our served markets, further strengthening our competitive position. We continued to gain market share across key segments, with FY2026 value market share3 increasing to 58% (+1% YoY) in commercial vehicle Clean Air Solutions, 55% (+3% YoY) in passenger vehicle shock absorbers and struts and sustained 68% in off-highway Clean Air Solutions. In CA & PT, we strengthened customer partnerships through strategic program nominations across passenger vehicle and commercial vehicle platforms spanning hot-end aftertreatment, cold-end solutions and Powertrain applications. During the quarter, we secured an order for spark plugs with one of the largest passenger vehicle OEM in India, leveraging our technical expertise and strong existing relationships across other product segments to enter a new whitespace opportunity. In ART, we continued to win new programs with existing customers while adding new customers for DCx Da Vinci, further reinforcing our leadership position in this product segment. These wins, together with progress in localizing advanced global technologies and enhancing capabilities for alternative fuel and next-generation mobility solutions, provide strong visibility for future growth. In export markets, ART secured its maiden order from a leading European ATV manufacturer, gaining entry into a new whitespace. Additionally, the company won a heat shield (PT segment) order from Tenneco America, further strengthening its exports. During the quarter, we were recognized by leading OEMs for innovation, technology leadership, and operational performance, further reinforcing the trust our customers place in us. Looking ahead, we remain focused on executing our strategy, investing in future technologies, and creating long-term value for all stakeholders.'

Mahender Chhabra Chief Financial Officer said, 'We delivered another quarter of healthy growth and resilient profitability despite significant commodity increases due to the current geopolitical situation and the cost of moving from a private to a listed public company. Revenue from operations increased to INR 15.4 billion (+20.2% YoY), while Value Added Revenue increased to INR 13.8 billion (+18.4% YoY), driven by higher volumes and new program launches. EBITDA for the quarter increased to INR 2,469 million (+7.9% YoY), with EBITDA margin of 17.9% on VAR. By actively leveraging the P3 framework, we continue to drive continuous improvement across safety, quality, delivery, and cost, while maintaining facilities that meet the highest global benchmarks. This has helped us deliver good performance despite market headwinds. PAT grew similar to EBITDA YoY growth excluding one-time benefit recorded in the corresponding quarter last year from selling our Motocare business and other one-off income. As we anticipate further headwinds, we remain focused on flawless P3 execution, prudent risk management, and commercial discipline to deliver profitable growth and long-term value creation for stakeholders.

Tenneco Clean Air India : Consolidated Results

' Quarter ended Year ended Particulars 202606 202506 Var.(%) 202603 202503 Var.(%) Net Sales (including other operating income) 1,544.75 1,285.62 20.16 5,403.98 4,890.43 10.50 OPM (%) 15.98 17.80 -182 bps 17.13 16.67 46 bps OP 246.89 228.88 7.87 925.47 815.23 13.52 Other Inc. 8.66 30.81 -71.89 58.95 41.02 43.71 PBIDT 255.55 259.69 -1.59 984.42 856.25 14.97 Interest 8.38 7.10 18.03 33.57 20.27 65.61 PBDT 247.17 252.59 -2.15 950.85 835.98 13.74 Depreciation 27.76 25.37 9.42 108.17 103.17 4.85 PBT 219.41 227.22 -3.44 842.68 732.81 14.99 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 219.41 227.22 -3.44 842.68 732.81 14.99 EO Income 0 0 - -27.17 0 - PBT after EO 219.41 227.22 -3.44 815.51 732.81 11.29 Taxation 54.17 59.13 -8.39 211.15 179.67 17.52 PAT 165.24 168.09 -1.70 604.36 553.14 9.26 Minority Interest (MI) 0.2 0.27 -25.93 0.78 1.08 -27.78 Net profit 165.04 167.82 -1.66 603.58 552.06 9.33 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 165.04 167.82 -1.66 603.58 552.06 9.33 EPS (Rs)* 4.09 4.16 -1.66 15.45 13.68 12.98 * EPS is on current equity of Rs 403.60 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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