Tenneco Clean Air India Ltd(TENNIND)

NSE: TENNINDBSE: 544612

₹ 441.1+0.38%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 17,803 crWebsite: www.tennecoindia.comUpdated: 27 Oct 2026

About

Tenneco Clean Air India Ltd is an Indian auto components manufacturer operating two segments: Clean Air & Powertrain (exhaust aftertreatment systems for commercial vehicles, passenger vehicles, and off-highway equipment) and Advanced Ride Technologies (shock absorbers, struts, and semi-active suspension). In FY26 the company reported revenue of Rs 5,403.98 crore. It holds leading value market shares: 58% in commercial vehicle clean air, 55% in passenger vehicle shock absorbers, and 68% in off-highway clean air as of FY2026.^[1][2]

Business segments

Advanced Ride Technologies (ART): shock absorbers, struts, and semi-active suspension for passenger vehicles and other applications; delivered VAR of INR 7,190 million in Q1 FY27, up 27.9% YoY.^[2]
Clean Air & Powertrain (CAPT): exhaust aftertreatment systems for commercial vehicles, passenger vehicles, and off-highway equipment; delivered VAR of INR 6,626 million in Q1 FY27, up 9.6% YoY.^[2]
ART consistently outpaces CAPT in growth: ART VAR grew 27.9% YoY vs CAPT 9.6% YoY in Q1 FY27; a similar pattern held in Q3 FY26 (ART +24.5% vs CAPT +5.4%) and Q2 FY26 (ART +15.4% vs CAPT +3%).^[2][3][4]

Market share and competitive position

CV Clean Air value market share rose from 57% to 58% in FY2026; PV shock absorber and strut market share expanded from 52% to 55% in the Indian market in FY2026.^[2]
Off-highway Clean Air market share held at 68% in FY2026, maintaining the company's strongest leadership position across its served segments.^[2]
PV shock absorber market share grew from 48% at DRHP stage to 52% (CRISIL-verified) by FY2025, and further to 55% by FY2026.^[4][2]

Key operating metrics

Total Value Added Revenue (VAR) reached INR 13,816 million in Q1 FY27, up 18.4% YoY; full-year FY2026 VAR was INR 49,180 million, up 12.3% YoY.^[2][5]
EBITDA margin on VAR was 17.9% in Q1 FY27 (-175 bps YoY), pressured by commodity inflation (rubber, plastics, crude/LPG/CNG), rupee depreciation, and listed-company operating costs; FY2026 full-year EBITDA margin was 18.8% of VAR, the highest ever.^[2][5]
ROCE reached 94% in FY2026 (vs 57% in FY2025), the highest ever; company remained net debt-free in FY2026.^[5]
Incremental lifetime order book stood at ~INR 124,000 million as of 31 March 2026, providing more than 100% coverage of FY2028 revenue target and supporting a double-digit CAGR trajectory.^[5]

Manufacturing capacity and utilisation

ART plants running above 90% capacity utilisation in Q1 FY27; CAPT utilisation was upward of 80% in Q1 FY27.^[2]
In FY2026, ART struts and shock absorber utilisation was at 90%; CA cold-end utilisation was 51% and CA hot-end utilisation was 78%.^[5]

Products and technology

DaVinci DCx is a patented mechanical semi-active suspension platform; DCx32 (32mm piston bore) was launched in Q1 FY27 to address A and B segment vehicles, extending the platform from mid-to-premium SUVs to entry-level cars.^[2]
Conventional shock absorbers represent 95%+ of current ART business; transition toward semi-active and active suspension increases content per vehicle materially.^[4]
Spark plug order secured from one of India's largest PV OEMs in Q1 FY27, representing entry into a new product vertical.^[2]
First-ever entry into engine bearings secured with a leading Japanese PV OEM in Q4 FY2026, opening another new product vertical.^[5]

Customers and exports

Exports were ~7% of total revenue in Q1 FY27, up from ~5% pre-IPO; the export order book split is approximately 70% intra-Tenneco Group and 30% third-party OEMs.^[2]
ART segment added four new customers to conventional and DCx platforms in Q1 FY27; maiden export order secured from a leading European all-terrain vehicle manufacturer in Q1 FY27.^[2]
Strategic clean air entry with a leading Japanese PV OEM (a previously absent white space) and aftertreatment program win with a leading European CV OEM were among key order wins in FY26.^[4][5]

Expansion and capex

FY27 total capex guidance is INR 350 - 450 crore, covering both CAPT and ART segments including two greenfield plants totalling INR 140 crore combined investment, funded entirely from internal accruals.^[2]
New greenfield ART plant in western India announced at ~INR 70 crore investment to relieve ART capacity constraint (currently above 90% utilisation).^[2]
Greenfield Clean Air plant in Kharkhoda, Haryana announced with INR 710 million capex; start of production targeted in Q3 FY27.^[3][5]
Total greenfield capex announced across northern India (INR 710 million, Kharkhoda) and western India (INR 690 million) amounts to INR 1,400 million.^[5]

Recent developments

Q1 FY27: ART VAR grew 27.9% YoY to INR 7,190 million; total VAR grew 18.4% YoY to INR 13,816 million against Q1 FY27 market volume growth.^[2]
Q4 FY2026: Euro VII Proof of Concept completed with a leading European truck OEM, positioning India as a potential export hub for clean air products under Euro VII emissions standards.^[5]
Q4 FY2026: DaVinci DCx semi-active suspension selected by a leading Indian OEM; multiple new DCx applications expanded in the quarter.^[5]
M&A and inorganic growth options are being evaluated as a potential deployment vehicle for surplus free cash flow beyond the capex programme.^[2]

Market Cap

₹17,803 Cr

High / Low

₹657 / 431

Stock P/E

29.3

Price / Book

14.7

Book Value

₹30

EPS

₹14.9

No. of Shares

40.36 Cr

ROCE

70.5%

ROE

50.4%

OPM

16.0%

Debt / Equity

0.00

Sales

₹5,404 Cr

Net Profit

₹604 Cr

Promoter holding

59.8%

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