Tenneco Clean Air India Ltd reported a 20.2% year-on-year increase in revenue from operations to Rs 15.45 billion for the quarter ended June 30, 2026 (Q1 FY2027), while value-added revenue (VAR), the company's preferred performance metric, rose 18.4% to Rs 13.82 billion.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 7.9% year-on-year to Rs 2.47 billion. However, the EBITDA margin based on VAR declined by 175 basis points to 17.9% from 19.6% a year earlier, reflecting higher commodity costs linked to geopolitical developments and expenses associated with the company's transition from a privately held business to a listed entity.
Profit after tax (PAT) stood at Rs 1.65 billion, down 1.7% from the corresponding quarter last year, with the PAT margin narrowing to 12.0% from 14.4%. The company said the previous year's profit included a one-time post-tax interest income of around Rs 187 million arising from the sale of the Motocare business. Excluding this non-recurring gain, PAT growth in the latest quarter would have been broadly in line with EBITDA growth.
Advanced Ride Technologies Drives Outperformance
The company said its value-added revenue growth exceeded the 16.2% growth recorded in its served addressable market, which includes passenger vehicles and commercial trucks. Performance during the quarter was supported by new programme wins, higher content per vehicle, stable exports and a broader customer base across its Advanced Ride Technologies (ART) and Clean Air & Powertrain (CA&PT) businesses.
Advanced Ride Technologies remained the fastest-growing business segment, with revenue increasing 27.9% year-on-year to Rs 7.19 billion, compared with 9.6% growth in the Clean Air & Powertrain business, which generated Rs 6.63 billion in revenue.
DCx Da Vinci Suspension Tech Expands Market Share
During the quarter, Tenneco expanded the application of its DCx Da Vinci suspension technology through multiple new programme wins and added 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 the fitment and benchmarking of its Mechanical Adaptive Roll Damping (MARD) dampers with a domestic original equipment manufacturer (OEM). It said its passenger vehicle shock absorber and strut value market share increased by 300 basis points to 55% in FY2026.
New Programme Wins in Clean Air & Powertrain
In the Clean Air & Powertrain business, the company secured several new programme nominations from passenger and commercial vehicle manufacturers. These included a spark plug order from a leading passenger vehicle OEM, a passenger vehicle exhaust programme, a CNG platform cold-end assembly programme for two 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 said its spark plugs are now compatible with flex-fuel applications of up to E85.
Export Orders and Industry Recognition
Tenneco also reported export-related developments during the quarter, including its first order from a European all-terrain vehicle manufacturer for its ART business and a heat shield order from Tenneco America for its Powertrain segment.
The company received 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 during the quarter.
Whole-Time Director and Chief Executive Officer Arvind Chandra said the company's growth was driven by programme execution, customer additions and higher market share across key product categories. He said Tenneco would continue investing in advanced technologies, localisation and alternative fuel solutions while pursuing long-term growth opportunities in both domestic and export markets.