Tenneco Clean Air India (TENNIND) Q1 26/27 earnings summary

Executive summary

• Q1 FY2027 saw strong execution, double-digit revenue growth, and increased adoption of technology-led solutions in ART and CA&PT businesses, with VAR up 18.4% year-over-year to INR 13,816 million.

• Market share expanded in key segments: 58% in commercial vehicle Clean Air, 55% in passenger vehicle shock absorbers/struts, and 68% in off-highway Clean Air.

• Secured significant new business wins, including four new ART customers, Clean Air program awards, and maiden export orders from Europe and America.

• Recognized with multiple industry awards for innovation and performance by OEMs.

• Completed IPO in November 2025, listing on BSE and NSE.

Financial highlights

• Revenue from operations increased 20.2% year-over-year to INR 15,448 million; VAR grew 18.4% to INR 13,816 million.

• EBITDA rose 7.9% year-over-year to INR 2,469 million, with an EBITDA margin of 17.9% on VAR.

• PAT was INR 1,652 million, with a PAT margin of 12% on VAR; YoY PAT growth was -1.7% due to a prior-year one-time gain.

• Exports accounted for slightly over 7% of total revenue for the quarter.

• ROCE for FY2026 stood at 94%.

Outlook and guidance

• Growth drivers include increasing content per vehicle, strong execution, technology differentiation, and expanding customer base.

• Investments in ART, alternative fuel solutions, and next-gen mobility position the company for future opportunities.

• CapEx for FY2027 targeted at INR 350–353 crore, funded through internal accruals, supporting double-digit top-line growth and two new plants.

• Order book reporting will continue on a half-yearly basis; strong business wins expected to drive growth through 2029.

• Management anticipates further headwinds but is committed to prudent risk management and commercial discipline.