Tenneco Clean Air India's Q2 Revenue Jumps 34%, Profit Growth Lags

Tenneco Clean Air India Ltd reported consolidated revenue from operations of Rs 17.18 billion in the September quarter, marking a 34.2% year-on-year increase.

Consolidated profit for the quarter was Rs 1.73 billion, up 15% from Rs 1.51 billion a year earlier. Profit before tax rose 21% to Rs 2.33 billion. Earnings per share were Rs 4.29, against Rs 3.73. Revenue rose 11.2% sequentially from Rs 15.45 billion in the June quarter.

For the six months, revenue rose 27.2% to Rs 32.63 billion, while profit rose 6.2% to Rs 3.39 billion. Profit margin on revenue narrowed to 10.4% from 12.4% a year earlier. Other income fell to Rs 178.17 million from Rs 428.72 million.

Cost Trends

Cost of materials consumed rose 35.1% to Rs 11.37 billion in the quarter, broadly in line with revenue growth. Other expenses rose 41.4% to Rs 2.02 billion, faster than revenue. Employee benefits expense rose 24.5% to Rs 936 million.

Finance costs fell to Rs 99.34 million from Rs 106 million. The filing does not state the reasons for the increase in other expenses.

Standalone Results

Standalone revenue rose 32.5% to Rs 7.18 billion, while standalone profit fell 89.1% to Rs 1.03 billion from Rs 9.39 billion. The year-ago figure included dividend income of Rs 8.96 billion from subsidiary Tenneco Automotive India Pvt Ltd, which the company’s notes disclose.

The standalone cash flow statement records the dividend in the six months ended September 2025. Standalone profit for the half year was Rs 1.93 billion, against Rs 10.51 billion.

Net cash from operating activities in the half year fell 58.3% to Rs 4.68 billion. The year-ago period included a Rs 7.89 billion release from financial and other assets. Inventories absorbed Rs 975.93 million, while trade payables added Rs 1.31 billion.

Capital expenditure, including capital work in progress and advances, rose to Rs 1.19 billion from Rs 245.92 million. Capital work in progress stood at Rs 1.53 billion, up about 163% from Rs 580.65 million at March 31, 2026. The filing does not specify the projects.

Cash and cash equivalents rose to Rs 9.15 billion from Rs 5.71 billion at March 31. Inventories rose to Rs 4.36 billion from Rs 3.38 billion. Trade payables to micro and small enterprises rose to Rs 1.72 billion from Rs 1.46 billion. 

Labour Codes

The company recognised an incremental impact of Rs 271.68 million on consolidated results for FY26 from the consolidation of 29 labour laws into four codes.

The standalone impact was Rs 85.31 million, recognised as an exceptional item. No exceptional items were reported in the current periods, and the filing does not quantify any further liability.

The group operates as a single segment and consolidates four subsidiaries: Tenneco Automotive India, Federal-Mogul Sealings India, Federal-Mogul Bearings India and Federal-Mogul Ignition Products India.