Tenneco Clean Air India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Tenneco Clean Air India Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Tenneco Clean Air India reported Q1 FY27 value added revenue growth of 18.4% year-on-year to INR13,816 million and revenue from operations growth of 20.2% to INR15,448 million. EBITDA grew 7.9% to INR2,469 million with a margin of 17.9% on value added revenue, while profit after tax was INR1,652 million. Management attributed margin pressure to commodity inflation, rupee depreciation, geopolitical supply chain disruptions, and incremental costs of operating as a newly listed public company, while highlighting market share gains, new customer wins on the DaVinci suspension platform, and export order wins during the quarter.
Numbers mentioned
Value added revenue: INR13,816 million (Q1 FY27)
p. 3
“For the quarter, value added revenue grew 18.4% year-on-year to INR13,816 million, outperforming the growth of our served addressable market.”
Arvind Chandra, page 3 of the filed PDF · View the filing
Revenue from operations: INR15,448 million (Q1 FY27)
p. 3
“Revenue from operations increased 20.2% year-over-year to INR15,448 million.”
Arvind Chandra, page 3 of the filed PDF · View the filing
EBITDA: INR2,469 million (Q1 FY27)
p. 3
“EBITDA grew 7.9% year-on-year to INR2,469 million, and we delivered an EBITDA margin of 17.9% on value added revenue.”
Arvind Chandra, page 3 of the filed PDF · View the filing
Profit after tax: INR1,652 million (Q1 FY27)
p. 3
“Profit after tax stood at INR1,652 million.”
Arvind Chandra, page 3 of the filed PDF · View the filing
Clean Air and Powertrain Solutions VAR growth: 9.6% year-on-year (Q1 FY27)
p. 5
“Clean Air and Powertrain Solutions delivered VAR of INR6,626 million, representing growth of 9.6% year-on-year.”
Mahender Chhabra, page 5 of the filed PDF · View the filing
Advanced Ride Technologies VAR growth: 27.9% year-on-year (Q1 FY27)
p. 5
“Advanced Ride Technologies continued its strong momentum and delivered VAR of INR7,190 million, growing 27.9% year-on-year.”
Mahender Chhabra, page 5 of the filed PDF · View the filing
PAT margin: 12% on VAR (Q1 FY27)
p. 6
“Profit after tax for the year stood at INR1,652 million with a PAT margin of 12% on VAR.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Customer recoveries and factory productivity: 60 bps (Q1 FY27)
p. 5
“Our customer recoveries and factory productivity amounted to 60 bps, reflecting – reflected -- already reflected in the EBITDA margin.”
Mahender Chhabra, page 5 of the filed PDF · View the filing
Commercial vehicle Clean Air Solutions market share: 58% (FY2026)
p. 3
“Our commercial vehicle Clean Air Solutions business increased value market share from 57% to 58% in FY2026”
Arvind Chandra, page 3 of the filed PDF · View the filing
Passenger vehicle shock absorbers and struts market share: 55% (FY2026)
p. 3
“our passenger vehicle shock absorbers and struts business expanded market share from 52% to 55% in the Indian market”
Arvind Chandra, page 3 of the filed PDF · View the filing
Off-highway Clean Air Solutions market share: 68%
p. 3
“In off-highway Clean Air Solutions, we maintained our strong leadership position with a market share of 68%.”
Arvind Chandra, page 3 of the filed PDF · View the filing
Exports as percent of revenue: slightly over 7% (Q1 FY27)
p. 9
“So, in terms of the current quarter, our exports are slightly over 7% of the overall revenue.”
Mahender Chhabra, page 9 of the filed PDF · View the filing
Royalty payment: 2.5% of overall revenue, reduced by intercompany sales (Q1 FY27)
p. 12
“So, as far as royalty is concerned, royalty is 2.5% of the overall revenue, reduced by intercompany sales.”
Mahender Chhabra, page 12 of the filed PDF · View the filing
CAPT capacity utilization: upward of 80% (Q1 FY27)
p. 12
“So, as far as capacity utilization is concerned, for CAPT, it is upward of 80%.”
Mahender Chhabra, page 12 of the filed PDF · View the filing
ART capacity utilization: more than 90% (Q1 FY27)
p. 12
“However, Advanced Ride Technologies, we are really working more than 90% of the capacity currently.”
Mahender Chhabra, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — INR350 crores to INR450 crores · FY27
stated conditionally by Mahender Chhabra
p. 11
“Okay. So, Nishit, we are targeting to spend approx INR350 crores to INR450 crores for FY ‘27, which will support our double-digit top-line growth.”
Mahender Chhabra, page 11 of the filed PDF · View the filing
New plant investment for Advanced Ride Technologies — INR70 crores approximately
stated firmly by Mahender Chhabra
p. 12
“And that's one of the reasons we've already announced one new plant for Advanced Ride Technologies, that should be in the western part of the country, with an investment of INR70 crores approximately.”
Mahender Chhabra, page 12 of the filed PDF · View the filing
Passenger vehicle OEM white space entry via CAFE 3 — 2028-29-ish
stated conditionally by Arvind Chandra
p. 8
“We're entering through CAFE 3, and we're waiting for them to announce when their engine will be launched. We're expecting that to be maybe 2028-'29-ish.”
Arvind Chandra, page 8 of the filed PDF · View the filing
Order book reporting — end of second quarter and end of full year
stated firmly by Arvind Chandra
p. 8
“So, H1 at the end of the second quarter, we'll report order book, and then again at the end of the full year we'll report second order book.”
Arvind Chandra, page 8 of the filed PDF · View the filing
New product launches — early calendar year '27 through '28 and '29
stated as an aspiration by Arvind Chandra
p. 21
“So somewhere between, like, early calendar year '27 through '28 and through '29, so the next couple of years are going to be very heavy for new product launches across the board.”
Arvind Chandra, page 21 of the filed PDF · View the filing
DaVinci suspension adoption across A and B segments
stated as an aspiration by Arvind Chandra
p. 20
“So that's my aspiration.”
Arvind Chandra, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it does not disclose margins by business unit, but explained cost pressures relate to non-indexed commodities and listed-company costs.
Answered by Mahender Chhabra
Asked by Ravi Gupta: Which segment drove the EBITDA margin decline, Clean Air or suspension?
p. 6
“Well, as a practice that we've agreed, we generally do not disclose the margins at the BU level.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Management declined to give a number, saying order book will be reported on a half-yearly basis going forward.
Answered by Arvind Chandra
Asked by Ravi Gupta: What is the order book growth given new customer wins?
p. 8
“So, H1 at the end of the second quarter, we'll report order book, and then again at the end of the full year we'll report second order book.”
Arvind Chandra, page 8 of the filed PDF · View the filing
Management explained the served addressable market excludes EVs and a major Japanese OEM where Tenneco has no presence, and adjusted for those the company's growth is better than the comparable market.
Answered by Arvind Chandra
Asked by Himanshu Singh: Why did Clean Air business grow only ~10% versus industry mid-to-high teens growth?
p. 8
“So, minus – so, total served market minus EV, minus this particular customer is where we end up.”
Arvind Chandra, page 8 of the filed PDF · View the filing
Management said the order value has not been disclosed yet and will be released at a future date.
Answered by Arvind Chandra
Asked by Himanshu Singh: What is the size of the spark plug order?
p. 9
“So, that I -- we haven't released the value for that yet. We will do that at the right time.”
Arvind Chandra, page 9 of the filed PDF · View the filing
Management indicated capex would cover both ART and Clean Air/Powertrain segments, including previously announced plants.
Answered by Mahendra Chhabra
Asked by Nishit Jalan: What are the capex plans for FY27, split between segments?
p. 15
“Yes. So this capex will be towards both the business segments, Clean Air and Powertrain as well as ART.”
Mahendra Chhabra, page 15 of the filed PDF · View the filing
Management said the export order book is roughly 70% intercompany and 30% third-party, though this ratio could change.
Answered by Arvind Chandra
Asked by Arvind Sharma: What is the split between exports to Tenneco entities versus third-party OEMs?
p. 12
“So, right now, our export order book is coming in like 70-30.”
Arvind Chandra, page 12 of the filed PDF · View the filing
Management said this quarter's margin reflects only partial recovery, as non-indexed commodities are harder to pass through.
Answered by Arvind Chandra
Asked by Vipul Agarwal: Does the Q1 margin reflect full recovery of commodity cost inflation from OEMs?
p. 13
“So, what we're showing, this quarter's, performance, margin performance, indicates a partial recovery of that.”
Arvind Chandra, page 13 of the filed PDF · View the filing
Management declined to give a specific figure but said export margins are equal to or better than domestic margins.
Answered by Mahendra Chhabra
Asked by Radha: What is the margin delta between exports and domestic business?
p. 17
“Having said that, our export margins are either in line or better than the domestic margins.”
Mahendra Chhabra, page 17 of the filed PDF · View the filing
Management said there was no impact because Tenneco does not have a strong position with that customer.
Answered by Arvind Chandra
Asked by Himanshu Singh: Did the company face any impact from Hyundai's supply disruptions in Q1?
p. 20
“No, we didn't, because our, um, we don't have a strong position in in in that passenger vehicle company, so we didn't we didn't face that.”
Arvind Chandra, page 20 of the filed PDF · View the filing
Management said cash funds capex internally and remaining free cash could go toward M&A or inorganic growth options being pursued.
Answered by Arvind Chandra
Asked by Nagaraj: How does the company plan to deploy its cash flow given it is debt-free with negative working capital?
p. 20
“So there are a lot of options including M&A, inorganic options that we're pursuing, so it's in line with your first question, so wait for the right time”
Arvind Chandra, page 20 of the filed PDF · View the filing
Risks flagged
Commodity inflation, geopolitical disruptions, and additional listed-company costs impacting margins
p. 3
“Despite a quarter marked by significant commodity inflation, geopolitical disruptions, and the additional costs associated with operating as a newly listed public company, we delivered healthy growth while sustaining strong profitability.”
Arvind Chandra, page 3 of the filed PDF · View the filing
Non-indexed commodity costs difficult to fully recover from customers
p. 13
“We're constantly hoping that, uh, we can recover all of it. But you know, with the mathematical formula, if, if your, your commodity costs go up by INR10, and if you are able to recover INR10 from the customer, your, your margin percentage drops purely because of the numerator, denominator effect, right?”
Arvind Chandra, page 13 of the filed PDF · View the filing
US tariffs under Section 232 affecting exports
p. 11
“Yes, tariffs is a problem. The Trump administration levied additional tariffs on Section 232, which is the some of the exhaust parts that get exported from here.”
Arvind Chandra, page 11 of the filed PDF · View the filing
Macroeconomic conditions in Europe and Americas posing challenges for exports
p. 11
“Also, there are some macroeconomic conditions in Europe and Americas. Again, not nothing to do with us. It's more to do with what's happening in those regions that could pose a challenge for exports.”
Arvind Chandra, page 11 of the filed PDF · View the filing
Ongoing Middle East war affecting commodity costs and potentially demand
p. 13
“But this is a, it's an ongoing battle, we don't know how long this Middle East war is going to continue.”
Arvind Chandra, page 13 of the filed PDF · View the filing
Uncertainty over demand if Middle East conflict deteriorates further
p. 14
“Now, if the Middle East war continues on and on, there will be some impact, I think.”
Arvind Chandra, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.