Tenneco Clean Air VAR up 18.4% in Q1FY27 as ART segment surges
Tenneco Clean Air India Limited delivered robust top-line growth in Q1FY27, with consolidated revenue rising 20.2% to ₹15,448 million and Value-Added Revenue increasing 18.4% to ₹13,816 million. The Advanced Ride Technologies segment led the charge with 27.9% revenue growth, bolstered by new wins for its DCx Da Vinci suspension system. However, EBITDA margins compressed to 17.9% from 19.6% due to commodity inflation and listing costs, while net profit remained stable at ₹1,652 million, aided by the absence of a one-time gain recorded in the prior year.

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Tenneco Clean Air India Limited reported a consolidated net profit of ₹1,652 million for the quarter ended June 30, 2026 (Q1FY27), with revenue from operations rising 20.2% year-on-year to ₹15,448 million. The automotive components manufacturer highlighted an 18.4% growth in Value-Added Revenue (VAR) to ₹13,816 million, outperforming industry volume growth of 16.2%. This performance was driven by strong demand in the Advanced Ride Technologies (ART) segment, which saw revenue jump 27.9%, offsetting margin pressures from commodity cost escalations and initial public offering expenses.
The Board of Directors approved the unaudited standalone and consolidated financial results during its meeting on August 5, 2026. The results were reviewed by M/s. Deloitte Haskins & Sells LLP, the statutory auditors, who issued an unmodified conclusion. The financial statements were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance Overview
Consolidated total income reached ₹15,534 million, comprising ₹15,448 million from operations and ₹86 million from other income. Total expenses were ₹13,340 million, including cost of materials consumed at ₹10,279 million and employee benefits expense of ₹964 million. Profit before tax remained stable at ₹2,194 million, while tax expense decreased to ₹542 million from ₹591 million in the prior year period.
On a standalone basis, total income was ₹6,540 million, with other income contributing ₹74 million. Total expenses amounted to ₹5,350 million, led by cost of materials consumed at ₹4,211 million. Standalone profit before tax was ₹1,190 million, and total tax expense was ₹283 million.
| Particulars | Consolidated Q1FY27 (₹ Million) | Consolidated Q1FY26 (₹ Million) | Standalone Q1FY27 (₹ Million) | Standalone Q1FY26 (₹ Million) |
|---|---|---|---|---|
| Revenue from Operations | 15,448 | 12,856 | 6,466 | 5,664 |
| Other Income | 87 | 308 | 74 | 374 |
| Total Expenses | 13,340 | 10,892 | 5,350 | 4,630 |
| Profit Before Tax | 2,194 | 2,272 | 1,190 | 1,408 |
| Net Profit After Tax | 1,652 | 1,681 | 907 | 1,120 |
| Earnings Per Share (Basic) | ₹4.09 | ₹4.16 | ₹2.25 | ₹2.78 |
Segmental Growth and Operational Highlights
The ART segment emerged as the primary growth engine, with revenue rising 27.9% to ₹7,190 million from ₹5,621 million in Q1FY26. This surge was fueled by expanded footprint of the DCx Da Vinci suspension system, adding four new customers and three new models in 2026. The company’s passenger vehicle shock absorber and strut value market share expanded by 300 basis points year-on-year to 55% in FY26. Additionally, Tenneco introduced the DCx32 variant for smaller vehicles and successfully benchmarked Mechanical Adaptive Roll Damping (MARD) dampers with a leading domestic OEM.
The Clean Air & Powertrain Solutions segment reported revenue of ₹6,626 million, up 9.6% from ₹6,044 million. Key wins included a strategic spark plug order from India’s leading passenger vehicle OEM, a new exhaust program from a leading Indian car maker, and a CNG platform cold-end assembly program from a global OEM. The company also reinforced spark plug compatibility with flex-fuel applications up to E85.
What the Numbers Show
A critical divergence exists between top-line growth and margin expansion. While VAR grew 18.4%, EBITDA margin contracted by 175 basis points to 17.9% from 19.6% in the prior year. Management attributed this compression to significant commodity price increases due to geopolitical tensions and the incremental costs associated with transitioning from a private to a listed public company. Despite this, PAT remained broadly stable year-on-year; however, the prior-year quarter included a one-time interest income benefit of approximately ₹187 million (net of tax) from the sale of the Motocare entity. Excluding this non-recurring item, PAT growth would have aligned more closely with EBITDA trends, indicating underlying operational resilience amidst external cost pressures.
Historical Stock Returns for Tenneco Clean Air
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.48% | +10.21% | -2.13% | +3.72% | +18.32% | +18.32% |
How sustainable is the 27.9% revenue growth in the ART segment given the current geopolitical tensions driving up commodity costs?
What specific pricing strategies or cost-mitigation measures is Tenneco implementing to reverse the 175 basis point contraction in EBITDA margins?
Will the incremental costs associated with being a listed public company continue to pressure profitability in Q2FY27, or are these one-time transition expenses?


































