Tenneco Clean Air India Limited reported its financial results for the quarter and fiscal year ended March 31, 2026, highlighting record profitability and a debt-free balance sheet. The company achieved its highest ever EBITDA margin of 18.8% for the full year, supported by a 12.3% year-over-year growth in value added revenue to INR49,180 million. The earnings were reviewed during a conference call held on June 3, 2026.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the discussions were based solely on publicly available information, with no Unpublished Price Sensitive Information (UPSI) shared during the proceedings.

For the fourth quarter, value added revenue grew 17.5% year-over-year to INR14,058 million, while EBITDA increased 17.6% to INR2,573 million with an EBITDA margin of 18.3%. Profit after tax for the quarter stood at INR1,668 million, up 18.8% year-over-year, with a PAT margin of 11.9%. The strong performance was attributed to sustained traction across both business segments and timely commercial actions mitigating geopolitical cost pressures.

On a full-year basis, revenue from operations grew 10.5% to INR54,040 million. Profit after tax for the year increased 9.3% to INR6,044 million with a margin of 12.3%. The company reported a significant improvement in capital efficiency, with Return on Capital Employed (ROCE) rising to 94% from 57% in the previous year. Fixed assets turnover improved to 9.6 times, and the cash conversion cycle remained strong at negative 23 days.

The company maintained a robust financial position, ending the year as a debt-free entity with a net debt-to-equity of negative 0.4. It generated cash flow equivalent to 58% of EBITDA after investing INR1,150 million in capital expenditure during the year. The lifetime order book stood at INR124,000 million as of March 31, 2026, providing visibility for the FY28 revenue target.

Strategic developments included the adoption of the DCx DaVinci suspension system by a leading Indian OEM and a strategic entry into the bearings systems business with a leading Japanese passenger vehicle OEM. The company also announced a new greenfield Advanced Ride Technologies plant in West India, alongside a previously announced Clean Air facility in North India, with a total announced capex of approximately INR1,400 million.

Roopali Singh, Company Secretary and Compliance Officer, confirmed the release of the transcript. The conference call included presentations from senior management, including Arvind Chandrasekharan, Whole Time Director & Chief Executive Officer, and Mahender Chhabra, Chief Financial Officer.

Tenneco Clean Air India Limited reported a consolidated net profit of ₹6,044 million for the financial year ended March 31, 2026, an increase of 9.3% from ₹5,531 million in the previous year. Revenue from operations for the year rose 10.5% to ₹54,040 million from ₹48,904 million in FY25. The company achieved its highest ever EBITDA margin of 18.8%, supported by a 12.3% growth in Value Added Revenue (VAR). For the quarter ended March 31, 2026, the company posted a consolidated net profit of ₹1,668 million on revenue of ₹15,524 million. The statutory auditors, Deloitte Haskins & Sells LLP, issued an audit report with an unmodified opinion on the standalone and consolidated financial results.

The Board of Directors approved the unaudited standalone and consolidated financial results for the fourth quarter and the audited standalone and consolidated financial statements for the financial year ended March 31, 2026. The meeting was held on May 30, 2026. The financial results were prepared in accordance with the Indian Accounting Standards (Ind AS) and comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Pursuant to Regulation 30 and 47 of the SEBI regulations, the company published the standalone and consolidated financial results in The Financial Express and Makkal Kural on June 1, 2026.

Consolidated Financial Performance

The company's consolidated total income for FY26 stood at ₹54,629 million, up from ₹49,314 million in the previous year. Total expenses for the year increased to ₹46,202 million from ₹41,986 million. Profit before tax for the year was ₹8,155 million, compared to ₹7,328 million in FY25. The company recognized an exceptional item of ₹272 million during the year related to the statutory impact of new Labour Codes.

Strategic Initiatives and Order Book

The company announced a total planned capex of approximately ₹1,400 million across Northern and Western India to support future growth demand. This includes an earlier announced expansion in Northern India of ₹710 million and a new investment of ₹690 million in Western India. The incremental lifetime order book reached ₹124,000 million as of March 31, 2026, covering more than 100% of FY2028 target revenues. The H2 FY2026 order book addition stood at ₹60,254 million.

Standalone Results and Segment Information

On a standalone basis, the company reported a net profit of ₹12,028 million for FY26, a significant increase from ₹3,061 million in the previous year. Revenue from operations for the standalone entity was ₹22,885 million, marginally higher than ₹22,368 million in FY25. Other income for the year included dividend income of ₹8,959 million from its subsidiary, Tenneco Automotive India Private Limited. The standalone results also included an exceptional item of ₹85 million related to the new Labour Codes.

The company is engaged in the business of manufacturing automotive equipment, parts, and components, which constitutes a single reportable segment as per Ind AS 108. The consolidated financial results include the parent company and its subsidiaries: Tenneco Automotive India Private Limited, Federal-Mogul Bearings India Limited, Federal-Mogul Ignition India Limited, and Federal-Mogul Sealings India Limited.

Balance Sheet and Cash Flows

The company's consolidated cash and cash equivalents as of March 31, 2026, stood at ₹5,712 million, compared to ₹2,859 million in the previous year. Net cash inflow from operating activities for the year was ₹14,295 million. The company reported a net cash outflow from financing activities of ₹10,754 million, primarily due to dividends paid of ₹10,366 million. Total equity as of March 31, 2026, was ₹12,005 million, while total liabilities were ₹13,366 million.

Earnings Conference Call

Tenneco Clean Air India Limited has scheduled an earnings conference call with analysts and investors on Wednesday, June 3, 2026, at 4:00 PM IST. The call will discuss the financial results for the fourth quarter and year ended March 31, 2026. The management team will be represented by Arvind Chandrasekharan, Whole Time Director & Chief Executive Officer; Mahender Chhabra, Chief Financial Officer; and Roopali Singh, Company Secretary & Compliance Officer. The investor presentation will be submitted to stock exchanges before the call and made available on the company website.