Tenneco Clean Air India Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and the National Stock Exchange of India Limited, as required under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, submitted on August 6, 2026 and signed by Company Secretary and Compliance Officer Roopali Singh, covers the standalone operations of the company and is also incorporated as part of the Integrated Annual Report for FY2025-26. The BRSR Core disclosures have been independently assured by Adwin Advisory Services Private Limited, which has provided reasonable assurance on core parameters for the reporting period April 1, 2025 to March 31, 2026.

Company Overview and Business Activities

Tenneco Clean Air India, incorporated in 2018 and headquartered at Paras Twin Towers, Gurugram, operates four manufacturing plants — two at Chakan, one in Chennai, and one at Pithampur — along with one corporate office. The company manufactures and supplies critical, highly engineered, and technology-intensive clean air solutions to major automotive Original Equipment Manufacturers (OEMs). Its paid-up capital stands at INR 4,03,60,43,090. The company's primary product, exhaust systems for motor vehicles (NIC Code 29301), accounts for 97.31% of total turnover, with automotive components manufacturing constituting 100% of business activity by turnover. Exports contributed approximately 4% of total turnover during the reporting period, with the company serving customers across 14 states nationally and 11 countries internationally.

Workforce and Employee Well-Being

As at the end of FY2025-26, Tenneco Clean Air India employed a total of 425 employees and 2,105 workers on a standalone basis. The workforce is predominantly male, with females representing 4.47% of total employees and 4.18% of total workers. The company reported nil differently abled employees or workers during the reporting period. All permanent and other-than-permanent employees are covered at 100% under both health insurance and accident insurance. The company's Board of Directors comprises 8 members, of whom 1 (12.50%) is female, while Key Managerial Personnel includes 3 members, of whom 1 (33.33%) is female.

Turnover rates for permanent employees stood at 19.54% (male), 36.36% (female), and 20.44% (total) in FY2025-26, compared to 24.12%, 10.26%, and 23.34% respectively in FY2024-25. For permanent workers, the total turnover rate was 0.50% in FY2025-26, unchanged from FY2023-24. Cost incurred on well-being measures as a percentage of total revenue was 0.1% in both FY2025-26 and FY2024-25. Gross wages paid to females as a percentage of total wages increased to 5.53% in FY2025-26 from 4.08% in FY2024-25.

Environmental Performance and Sustainability

Tenneco Clean Air India reported measurable progress in its environmental performance during FY2025-26. Scope 1 and Scope 2 GHG emissions declined, with total Scope 1 emissions at 375.69 tCO2e and total Scope 2 emissions at 5,141.28 tCO2e, representing an overall reduction of approximately 16% compared to the prior year. Renewable energy accounted for 23% of total energy consumption during the reporting period. The company has set goals to achieve 50% renewable energy usage by 2030 and to reduce Scope 1 and Scope 2 GHG emissions by 50% by 2030, from a 2024 baseline.

Key environmental initiatives during the reporting period included a 920 kWp rooftop solar plant at the Chakan facility generating approximately 8,70,000 kWh annually and reducing approximately 350 tonnes of CO₂e, and a Power Purchase Agreement at the Chennai facility through which more than 90% of the facility's energy is sourced from renewable solar and wind energy. Recycled steel accounted for 11.05% of input material by value in FY2025-26, up from 8.83% in FY2024-25. The company does not have operations in or around ecologically sensitive areas and reported no material environmental non-compliances during the period.

Health, Safety, and Governance

All four manufacturing facilities are certified to ISO 45001:2018, ISO 14001:2015, and IATF 16949, with 80% of plants and offices assessed for health and safety practices and working conditions during FY2025-26. The Lost Time Injury Frequency Rate (LTIFR) was 0.28 per one million person hours worked, with one total recordable work-related injury and no fatalities reported among employees and workers. The company reported nil monetary penalties, fines, or compounding fees, and nil non-monetary punishments or imprisonments during the reporting period. No disciplinary actions by law enforcement agencies for bribery or corruption were recorded against any directors, KMPs, employees, or workers in FY2025-26 or FY2024-25.

The company's CSR activities during FY2025-26 included the National Apprentice Promotion Scheme (34 beneficiaries), the Flexi MoU Scheme for apprentice training (338 beneficiaries), general health and eye checkup camps (2,205 beneficiaries), installation of air purifiers (2,097 beneficiaries), a Work Integrated Learning Program (97 beneficiaries), and support for athletes and para-athletes in preparation for the 2028 Olympics (218 beneficiaries, comprising 151 athletes and 67 para-athletes). The CSR-applicable turnover was INR 22,885.20 Million and net worth was INR 60,380.68 Million. Input material sourced directly from MSMEs and small producers represented 52.12% of total inputs by value in FY2025-26, compared to 50.17% in FY2024-25, while inputs sourced directly from within India stood at 89.90% versus 90.65% in the prior year.

Business Openness and Governance Disclosures

Purchases from trading houses as a percentage of total purchases were 6.47% in FY2025-26, marginally lower than 6.58% in FY2024-25, with purchases concentrated among three trading houses accounting for 100% of trading house purchases in both years. Related party transactions as a share of total purchases stood at 0.71% (FY2025-26) versus 0.63% (FY2024-25), while related party sales represented 3.27% of total sales compared to 3.14% in the prior year. The number of days of accounts payables increased to 126 in FY2025-26 from 95 in FY2024-25. Capital expenditure directed toward technologies to improve environmental and social impacts represented 11.53% of total capex in FY2025-26, a significant increase from 0.39% in FY2024-25, while R&D investment in such technologies remained at 100% in both years. The company is a member of one trade association — ECMA (Emission Controls Manufacturing Association) — at the national level. No data breaches, product recalls, or consumer complaints related to data privacy, advertising, or cyber-security were reported during the reporting period.

Tenneco Clean Air India Limited delivered record financial performance in FY 2025-26, achieving its highest-ever EBITDA margin, highest-ever Return on Capital Employed and its largest-ever order book, according to the company's Integrated Annual Report for the financial year ended March 31, 2026. The company also completed a landmark Initial Public Offering during the year, listing on both NSE and BSE on November 19, 2025.

FY 2025-26 Financial Performance

On a consolidated basis, the company reported strong growth across key financial metrics for the year. The following table summarises the headline performance:

Value Added Revenue grew 12.3% during FY 2025-26, compared to a compound annual growth rate of 5.9% over the prior three years (FY 2023 to FY 2025). EBITDA rose 13.5% to INR 9,255 Million, with the EBITDA margin reaching 18.8% — the highest in the company's history. Profit After Tax on a consolidated basis grew 9.3% to INR 6,043.59 Million, against INR 5,531.43 Million in the previous year. ROCE nearly doubled to 94% from 57% in FY 2024-25, reflecting disciplined capital allocation. During the year, the company generated cash flow equivalent to 58% of EBITDA (adjusted for one-time sale proceeds).

On a standalone basis, revenue from operations was INR 22,885.20 Million against INR 22,367.55 Million in the previous year. Standalone net profit after tax stood at INR 12,028.39 Million, compared to INR 3,060.82 Million in FY 2024-25, with the increase primarily attributable to dividend income from a subsidiary.

Business Segment Performance

The company operates through two integrated business segments:

Clean Air and Powertrain Solutions

The Clean Air & Powertrain Solutions division recorded VAR growth of 5.5% YoY. Key strategic wins during the year included:

• Entry into the hot end of the aftertreatment system for a leading Japanese passenger vehicle OEM
• A major clean air win with Europe's leading commercial truck manufacturer
• A strategic win in the engine bearings business with a leading Japanese OEM, where the company holds a 44% market share in bearings
• Completion of a proof of concept for a Euro VII compliant aftertreatment system with a leading European OEM
• Nomination as lead Clean Air supplier for a new engine platform by a major Indian commercial vehicle OEM

The company holds a 57% value market share among commercial truck OEMs and 68% among off-highway OEMs for clean air solutions.

Advanced Ride Technologies

The Advanced Ride Technologies (ART) segment delivered robust double-digit VAR growth of 19.7% YoY, driven by higher volumes and new programme wins. A key milestone was the selection of the company's patented DaVinci DCx suspension system by a leading Indian OEM for a new-generation flagship SUV platform, representing annual revenue potential of approximately INR 2,200 Million from that programme alone. The company holds a 52% market share in passenger vehicle shock absorbers and a 55% value market share in shock absorbers and struts for passenger vehicle OEMs.

IPO and Market Performance

Tenneco Clean Air India was listed on NSE and BSE on November 19, 2025, through an Initial Public Offering of 90,680,100 equity shares of face value INR 10 each, aggregating to INR 36,000 Million. The IPO comprised entirely an Offer for Sale by Tenneco Mauritius Holdings Limited. The issue was oversubscribed 61.8 times overall, with Qualified Institutional Buyers subscribing 174.8 times their allocation. The company's shares listed at a premium to the issue price on both exchanges. As of March 31, 2026, the share price had grown 30% since the IPO issue price, with the stock ranking in the top decile of BSE-listed companies since listing. Institutional holding stood at 21.9% as of March 31, 2026.

Order Book and Revenue Visibility

The company's incremental lifetime order book increased from INR 98,400 Million as of October 2025 to approximately INR 1,24,000 Million as of March 31, 2026 — a net increase of approximately 26%. During this period, net order additions of INR 60,254 Million were achieved, partially offset by INR 34,654 Million transitioning to Start of Production. The order book provides revenue visibility over the next 5-6 years approximately, with exports now representing over 14% of total order booking compared to approximately 5% of revenue at IPO.

Capacity Investments and Manufacturing

The company announced approximately INR 1,400 Million of growth investments across two new facilities:

The company operates 12 manufacturing facilities and 2 R&D centres near key automotive hubs in India. Capacity utilisation as of FY 2025-26 stood at 51% for Cold Ends (total installed capacity: 3 Million units), 78% for Hot Ends (total installed capacity: 2 Million units), and 90% for Struts and Shock Absorbers (total installed capacity: 21 Million units).

Subsidiaries Performance

The company has four subsidiaries. Key financial highlights are as follows:

Dividends

During FY 2025-26, the company paid four interim dividends:

The Board of Directors did not recommend any final dividend for FY 2025-26, in view of the company's growth strategy with respect to investments in capacity expansion, technology development and localisation initiatives.

Sustainability and CSR

During FY 2025-26, the share of renewable energy in the overall energy mix increased to 23% and Scope 1 & Scope 2 emissions reduced by 16%. Total waste generated across operations was 1,721.56 tons, with 99.80% recycled. Total CSR spend for FY 2025-26 amounted to INR 6.93 Crores, covering skill development, healthcare, athlete support and environmental sustainability initiatives across 8 CSR projects. Community initiatives supported 151 athletes and 67 para-athletes, while health and eye check-up camps across 17 rural villages benefited 2,205 people.

Workforce

As at March 31, 2026, the company had a total workforce of 2,105 employees and workers on a standalone basis (March 31, 2025: 1,875). The attrition rate for the year stood at 20.44% (FY 2024-25: 23.34%). On a standalone basis, the company employed 614 employees and workers on its rolls as of March 31, 2026.