Tenneco Clean Air India Q1 FY2027 Results Revenue Rises 20.2% Despite Margin Pressure

Tenneco Clean Air India Q1 FY2027 Results reflected a strong start to the financial year as the company recorded robust growth in revenue and value-added revenue, supported by programme wins, increasing customer additions and healthy export demand. Revenue from operations increased 20.2% year-on-year to Rs 15.45 billion during the quarter ended June 30, 2026, while value-added revenue (VAR), the company's preferred performance metric, climbed 18.4% to Rs 13.82 billion. The company also continued strengthening its presence across advanced suspension technologies and clean air solutions for both domestic and international markets.

Revenue Growth Outpaces Addressable Market

Tenneco stated that its VAR growth of 18.4% exceeded the 16.2% growth recorded in its served addressable market covering passenger vehicles and commercial trucks. The company's quarterly performance was supported by multiple new programme wins, higher content per vehicle, a stable export business and an expanding customer portfolio across its Advanced Ride Technologies (ART) and Clean Air & Powertrain (CA&PT) businesses. The results also reflected continued demand across several product categories despite an increasingly competitive operating environment.

Quarterly Financial Performance

The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 7.9% year-on-year to Rs 2.47 billion. However, EBITDA margin based on VAR declined to 17.9% from 19.6% in the corresponding quarter last year due to elevated commodity costs arising from geopolitical developments and expenses related to its transition from a privately held company to a listed entity. Profit after tax (PAT) came in at Rs 1.65 billion, representing a decline of 1.7% compared with the previous year.

Key Q1 FY2027 Financial Highlights

The company explained that the previous year's PAT included a one-time post-tax interest income of approximately Rs 187 million from the sale of its Motocare business. Excluding this non-recurring gain, management said the latest quarter's PAT growth would have broadly aligned with EBITDA growth.

Advanced Ride Technologies Continues Strong Momentum

The Advanced Ride Technologies business remained the fastest-growing segment during the quarter. Revenue increased 27.9% year-on-year to Rs 7.19 billion, significantly outperforming the Clean Air & Powertrain business, which recorded 9.6% growth and generated Rs 6.63 billion in revenue. Continued investments in innovative suspension technologies and broader customer adoption supported the segment's strong performance.

During the quarter, Tenneco Clean Air India Ltd expanded deployment of its DCx Da Vinci suspension technology through multiple programme wins while adding four new customers and three additional vehicle models. The company also introduced the DCx32 suspension system for smaller A- and B-segment vehicles and completed fitment and benchmarking of its Mechanical Adaptive Roll Damping (MARD) dampers with a domestic OEM. Passenger vehicle shock absorber and strut value market share increased by 300 basis points to 55% in FY2026.

Clean Air & Powertrain Business Secures New Programmes

The Clean Air & Powertrain business secured several new programme nominations from passenger and commercial vehicle manufacturers. These included a spark plug order from a leading passenger vehicle OEM, an exhaust programme, a CNG platform cold-end assembly programme covering two vehicle models from a global OEM and an emission after-treatment system programme for a domestic commercial vehicle manufacturer's small commercial vehicle range. The company also confirmed that its spark plugs are now compatible with flex-fuel applications of up to E85.

Export Expansion and Industry Recognition

Export activities also strengthened during the quarter. India-based operations secured their first order from a European all-terrain vehicle manufacturer for the ART business while also receiving a heat shield order from United States-based Tenneco America for the Powertrain segment. These developments further strengthened the company's international business pipeline.

The company also received multiple industry recognitions during the quarter, including the Innovation and Performance Award from Mahindra, the Ride Performance Award 2026 from The Economic Times and the Technology & Innovation Award from Daimler India Commercial Vehicles.

Management Outlook

Whole-Time Director and Chief Executive Officer Arvind Chandra said growth during the quarter was driven by successful programme execution, customer additions and increasing market share across major product categories. He added that the company will continue investing in advanced technologies, localisation initiatives and alternative fuel solutions while pursuing long-term growth opportunities across domestic and export markets.

Frequently Asked Questions

How did Tenneco Clean Air India perform in Q1 FY2027?
Tenneco Clean Air India delivered strong top-line growth during Q1 FY2027, with revenue from operations increasing 20.2% and value-added revenue rising 18.4% year-on-year. EBITDA also improved despite margin pressure caused by higher commodity costs and listing-related expenses. Profit after tax declined slightly because the previous year's results included a one-time gain from the Motocare business sale, making year-on-year comparisons less representative of underlying operating performance.

What drove the company's growth during the quarter?
The company's quarterly growth was supported by new programme wins, increased customer additions, higher content per vehicle, stable exports and expanding adoption of Advanced Ride Technologies products. Additional contributions came from new Clean Air & Powertrain programmes, suspension technology launches, export orders and continued investments in localisation and alternative fuel solutions, helping the business outperform growth in its served addressable market despite challenging cost conditions.