Delivers Above-Market Growth, Strong Margins, and Secures Strategic Wins Across Clean Air & Advanced Ride Technologies
Tenneco Clean Air India Limited (“Tenneco India”) (BSE/NSE: TENNIND), a leading Tier-1 automotive component manufacturer supplying Clean Air, Powertrain and Advanced Ride Technologies (ART) solutions to major OEMs, today announced its financial results for Q2 and H1 FY2026.
Management Remarks:
Arvind Chandrasekharan, Whole-Time Director and CEO, Tenneco India, said:
“Tenneco India has delivered a strong and strategically meaningful quarter. Our Q2 and H1 FY2026 VAR* performance clearly reflects above-market growth, supported by deeper engagement across customer programs. During the quarter, we secured important new awards in both Clean Air and ART, including strategic entry into a new whitespace opportunity with a leading Japanese OEM in Clean Air and increased market share for a well-known Indian OEM in ART. These wins further strengthen our medium-term growth visibility and reinforce the progress of our localization and technology strategy.
He further added: “Industry tailwinds in regulation, premiumization and exports continue to create attractive opportunities, and we are well positioned to capture them. Our expanding order pipeline, improving export traction and the disciplined execution mindset embedded in The Tenneco Way give us strong confidence in sustaining market outperformance and long-term value creation.”
Key Highlights Q2 & H1 FY2026:
· VAR* growth of 8.9% in Q2 and 8.2% in H1, reflecting above-market performance** supported by higher volumes and healthy export traction.
· Advanced Ride Technologies (ART) delivered strong double-digit growth (15.4% in Q2; 13.8% in H1) driven by premiumization, exports and higher program penetration.
· Clean Air & Powertrain Solutions recorded steady growth of 3.0% in Q2 and 3.2% in H1, supported by stable domestic volumes.
· EBITDA margins (VAR) remained industry-leading at 18.8% in Q2 and 19.2% in H1, driven primarily by higher margins on export volumes and supported by operational efficiencies and disciplined cost management.
· PAT(VAR) increased 9.9% YoY in Q2 and 10.9% YoY in H1, driven by higher one-time interest income related to the entity restructuring.
*VAR (Value Added Revenue) is used as the primary performance metric as it excludes pass-through substrate costs from revenue from operations and better reflects the underlying operating performance, margins, and comparability across periods. ** Source: SIAM.
· Incremental Lifetime order book expanded to INR 98,400 million, including INR 17,600 million from export programs, strengthening multi-year revenue visibility.
· Strategic program awards secured across Clean Air and ART domestic and exports.
· IPO oversubscribed 61.8x, demonstrating strong institutional and retail investor confidence.
Quarterly Financial Highlights (INR Millions):
|
|
Q2 FY2026 |
Q2 FY2025 |
YoY Change |
|
Revenue from Operations |
12,806 |
11,687 |
9.6% |
|
Value-added Revenue (VAR) |
11,515 |
10,576 |
8.9% |
|
Clean Air & Powertrain Solutions |
5,702 |
5,539 |
3.0% |
|
Advanced Ride Technologies |
5,813 |
5,038 |
15.4% |
|
EBITDA/ Margin (VAR) |
2,168 |
2,052 |
5.7% |
|
PAT/ Margin (VAR) |
1,507 |
1,371 |
9.9% |
Half-yearly Financial Highlights (INR Millions):
|
|
H1 FY2026 |
H1 FY2025 |
YoY Change |
|
Revenue from Operations |
25,663 |
24,394 |
5.2% |
|
Value-added Revenue (VAR) |
23,181 |
21,426 |
8.2% |
|
Clean Air & Powertrain Solutions |
11,747 |
11,381 |
3.2% |
|
Advanced Ride Technologies |
11,434 |
10,045 |
13.8% |
|
EBITDA/ Margin(VAR) |
4,457 |
4,181 |
6.6% |
|
PAT/ Margin(VAR) |
3,188 |
2,874 |
10.9% |
Strategic Business Wins:
Tenneco India announced significant incremental business bookings for the upcoming product cycle, along with key strategic wins across its core verticals.
The incremental lifetime order book value amounts to INR 98,400 millions (INR 17,600 millions of this is through exports), which is over and above existing INR 43,801 millions VAR in FY2025. These bookings represent lifetime VAR potential from awarded programs which are yet to start production and materially enhance the company’s revenue visibility over the next 5-6 years approximately.
The company achieved a major win in Clean Air Systems with a leading Japanese passenger vehicle OEM in India. This marks Tenneco’s entry into previously untapped Clean Air white space for the OEM, supported by the company’s technology depth, localization, engineering capability and strong OEM relationships.
The company also achieved a major win in ART with a well-known Indian OEM, reinforcing its position as the number-1 shock absorber manufacturer in the Indian passenger vehicle market. (Source :Crisil Report https://tennecoindia.com/industry-report/)
IPO Performance (November 2025):
Tenneco India’s IPO saw strong investor demand, with total subscription of 61.8 times, including:
· Retail: 5.4x
· Qualified Institutional Buyers: 174.8x
· Non-Institutional Investors: 42.8x
The market response reflects strong confidence in Tenneco’s technology, growth roadmap and execution capability.