Tenneco Clean Air India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Tenneco Clean Air India Ltd filed with BSE on 09 Jun 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 full year FY26 value added revenue growth of 12.3% to INR49,180 million and EBITDA growth of 13.5% to INR9,255 million, with EBITDA margin at 18.8%. Q4 FY26 value added revenue grew 17.5% to INR14,058 million and profit after tax rose 18.8% to INR1,668 million. Management discussed new plant announcements in North and West India, an entry into the bearings systems business, and growth in the order book to INR124,000 million.
Numbers mentioned
Value added revenue: INR49,180 million (FY26)
p. 3
“we delivered value added revenue growth of 12.3% year-over-year to INR49,180 million, supported by sustained traction across both business segments”
Arvind Chandrasekharan, page 3 of the filed PDF · View the filing
EBITDA: INR9,255 million (FY26)
p. 3
“EBITDA grew by 13.5% year-over-year to INR9,255 million.”
Arvind Chandrasekharan, page 3 of the filed PDF · View the filing
EBITDA margin: 18.8% (FY26)
p. 3
“we achieved our highest ever EBITDA margin of 18.8%, expanding by 21 points over the last year.”
Arvind Chandrasekharan, page 3 of the filed PDF · View the filing
Value added revenue: INR14,058 million (Q4 FY26)
p. 3
“Value added revenues grew 17.5% year-over-year to INR14,058 million, while EBITDA increased 17.6% to INR2,573 million with EBITDA margin at 18.3%.”
Arvind Chandrasekharan, page 3 of the filed PDF · View the filing
Profit after tax: INR1,668 million (Q4 FY26)
p. 4
“Profit after tax came in at INR1,668 million, up 18.8% year-over-year, with PAT margin at 11.9% reflecting continued operating leverage.”
Arvind Chandrasekharan, page 4 of the filed PDF · View the filing
Revenue from operations: INR15,524 million (Q4 FY26)
p. 5
“Revenue from operations grew 17.1% year-on-year to INR15,524 million, while VAR increased 17.5% to INR14,058 million, supported by higher volumes and ramp-up of new programs.”
Mahender Chhabra, page 5 of the filed PDF · View the filing
Clean Air and Powertrain Solutions revenue: INR6,905 million (Q4 FY26)
p. 6
“At a business unit level, Clean Air and Powertrain Solutions grew 9.9% to INR6,905 million, while Advanced Ride Technologies continued its strong momentum, growing 26% to INR7,153 million.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Revenue from operations: INR54,040 million (FY26)
p. 6
“Revenue from operations grew 10.5% to INR54,040 million whereas VAR increased 12.3% to INR49,180 million.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Clean Air and Powertrain Solutions revenue: INR24,296 million (FY26)
p. 6
“At the segment level, Clean Air and Powertrain Solutions delivered INR24,296 million, growing 5.5%, while Advanced Ride Technologies delivered INR24,885 million, growing a strong 19.7% year-on-year continuing to outpace the broader market.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Profit after tax: INR6,044 million (FY26)
p. 6
“Profit after tax for the year stood at INR6,044 million, up 9.3% year-on-year with margins at 12.3%.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Return on capital employed: 94% (FY26)
p. 6
“Return on capital employed improved significantly to 94%, up from 57% in FY25 reflecting both higher profitability and efficient capital utilization.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Fixed assets turnover: 9.6 times (FY26)
p. 6
“Fixed assets turnover improved to 9.6 times from 8.4 times in FY25, while our cash conversion cycle remained strong at negative 23 days, highlighting continued discipline in working capital management.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Net debt-to-equity: negative 0.4 (FY26)
p. 7
“We are a debt-free company with a net debt-to-equity of negative 0.4, providing ample financial flexibility.”
Mahender Chhabra, page 7 of the filed PDF · View the filing
Lifetime order book: INR124,000 million (as of March 31, 2026)
p. 5
“our lifetime order book stands at INR124,000 million after accounting for net additions and programs that commenced production this year”
Arvind Chandrasekharan, page 5 of the filed PDF · View the filing
Announced capex: approximately INR1,400 million
p. 5
“Together, these projects represent an announced capex of approximately INR1,400 million, ensuring we are well-positioned to meet future demand while maintaining operational efficiency.”
Arvind Chandrasekharan, page 5 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.
FY28 internal revenue target — FY28
stated firmly by Arvind Chandrasekharan
p. 5
“This provides 100% visibility of our FY 2028 internal revenue target and underpins a double-digit growth trajectory over the medium term.”
Arvind Chandrasekharan, page 5 of the filed PDF · View the filing
Clean Air addressable market from CAFE 3 and BS7 — 1,300 to 1,400 crores of additional content per vehicle · next three to five years
stated as an aspiration by Arvind Chandrasekharan
p. 19
“we typically say that's another 300 crores to 400 crores addressable market for CAFE and the BS7 for us is another 1,000 or so. So about 1,300 crores to 1,400 crores addressable market we can go after in the next three to five years.”
Arvind Chandrasekharan, page 19 of the filed PDF · View the filing
New plant commissioning — six months to a year
stated firmly by Arvind Chandrasekharan
p. 9
“those plants will take, you know, somewhere between six months to a year to commission and the volumes will start.”
Arvind Chandrasekharan, page 9 of the filed PDF · View the filing
Peak revenue from new plants — mid-28 to '29
stated as an aspiration by Arvind Chandrasekharan
p. 9
“So I think the actual peak will happen somewhere in mid-28 to ‘29, you know, typically we have a one is to three ratio of capex going to let's call it steady state revenue.”
Arvind Chandrasekharan, page 9 of the filed PDF · View the filing
Exports ramp-up — around 2028
stated as an aspiration by Arvind Chandrasekharan
p. 9
“So a lot of that exports start hitting the ground around 2028 timeframe, right?”
Arvind Chandrasekharan, page 9 of the filed PDF · View the filing
EBITDA margin
stated as an aspiration by Mahender Chhabra
p. 15
“so our margins are kind of, are the result of the unique operating model that we have and hence we see improvement in the margins and we also expect these margins to remain stable.”
Mahender Chhabra, page 15 of the filed PDF · View the filing
Localization level — 90% level · long term
stated as an aspiration by Arvind Chandrasekharan
p. 13
“the idea is to make sure that we slowly creep up to that 90% level of localization.”
Arvind Chandrasekharan, page 13 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 exports are currently only 5-6% of sales but the order book share is much higher, driven by technology equalization, supply chain diversification, and labour cost arbitrage; new plants will take six months to a year to commission with peak revenue around 2028-29.
Answered by Arvind Chandrasekharan
Asked by Nishit Jalan: How will export order wins ramp up over the next two to three years, and what is the timeline for new plants and bearings orders?
p. 7
“our current exports as a percentage of sales is very low. You know that, because we never had exports growth as a strategy in the past, right? So we're only at about 5% to 6% currently.”
Arvind Chandrasekharan, page 7 of the filed PDF · View the filing
Management said commercial vehicle exhaust content can be 3X to 4X that of passenger vehicles, and even up to 10-15X for construction equipment, with diesel needing higher aftertreatment content than petrol.
Answered by Arvind Chandrasekharan
Asked by Ravi: What is the content per vehicle difference between passenger vehicle and commercial vehicle exhaust systems, and are there plans for other OEMs?
p. 10
“if the car typical passenger vehicle exhaust system is at X, a commercial system exhaust could be somewhere between 3X to 4X.”
Arvind Chandrasekharan, page 10 of the filed PDF · View the filing
Management said the company works in partnership with Tenneco sister divisions and can also directly supply third-party OEMs with their permission when the group is not targeting a given segment.
Answered by Arvind Chandrasekharan
Asked by Radha Agarwal: Can the company export directly to third-party OEMs or only to Tenneco Group entities?
p. 12
“we work very closely. We have very good regular cadence of export opportunities both from a third party OEM perspective as well as inter-company sales where we'll be selling child parts, sub-assemblies and even finished goods depending on what the needs are.”
Arvind Chandrasekharan, page 12 of the filed PDF · View the filing
Management said they have deliberately avoided low-margin segments like two-wheelers and three-wheelers in the past and would only enter with a differentiated, technology-led offering.
Answered by Arvind Chandrasekharan
Asked by Radha Agarwal: Does the company plan to enter the two-wheeler suspension segment?
p. 12
“we've deliberately avoided two-wheelers or three-wheeler, you know, auto rickshaws and so on purely because it doesn't give us the right margin potential for us, right?”
Arvind Chandrasekharan, page 12 of the filed PDF · View the filing
Management attributed the margin improvement to the P3 operating model and said the growth lag was due to mix effects within and between OEMs rather than any loss of market share.
Answered by Arvind Chandrasekharan
Asked by Vipul Agrawal: What drove the margin expansion in the Clean Air business despite growth lagging the CV industry?
p. 15
“we have not lost any competitive share versus some of our key adversaries or competitors, but overall the growth has been along the market, along with market volumes, minus the fact that we are not present in a certain passenger vehicle OEM.”
Arvind Chandrasekharan, page 15 of the filed PDF · View the filing
Management said currency depreciation improves competitiveness and that the company realizes more INR on exports, viewing it as a net benefit rather than a pass-through cost.
Answered by Arvind Chandrasekharan
Asked by Pramod Amthe: How is currency depreciation handled in export contracts, and does it benefit the company or get passed to the parent?
p. 18
“I see this as an immediate 15% to 20% improvement in our ability to compete in the global market.”
Arvind Chandrasekharan, page 18 of the filed PDF · View the filing
Management explained that meeting CO2 targets under CAFE 3 requires light-weighting and gasoline particulate filters for petrol vehicles using gas direct injection, adding content per vehicle.
Answered by Arvind Chandrasekharan
Asked by Pramod Amthe: What changes does CAFE 3 require in aftertreatment systems and what is the content per vehicle impact?
p. 19
“the content goes up from somewhere from X to 1.5, X to 1.3 to 1.5X. That gives us additional content, and we typically say that's another 300 crores to 400 crores addressable market for CAFE and the BS7 for us is another 1,000 or so.”
Arvind Chandrasekharan, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical cost pressures affecting margins
p. 3
“this quarter was particularly strong across all key metrics despite elevated geopolitical cost pressures.”
Arvind Chandrasekharan, page 3 of the filed PDF · View the filing
One-time labour code charge impacting profit after tax
p. 6
“This includes the impact of a one-time labour code charge, which was partially offset by stronger operating performance and higher other income.”
Mahender Chhabra, page 6 of the filed PDF · View the filing
Rising indirect costs from freight, currency, plastics, rubber and crude oil
p. 18
“Indirect is where there is an issue, right? Because you got freight costs because of the Middle East war, you've got this currency issue, you've got, you know, cost of plastics and rubber that have gone up, then you have LPG, CNG, crude oil.”
Arvind Chandrasekharan, page 18 of the filed PDF · View the filing
Difficult recovery negotiations with customers over external cost increases
p. 18
“yes, sometimes these do make for tough discussions with customers because a lot of these are not caused by us, right?”
Arvind Chandrasekharan, page 18 of the filed PDF · View the filing
Fleet-level CO2 penalties under CAFE 3 for non-compliance
p. 19
“if you don't meet CAFE 3, the penalties are quite high for because for every gram per kilometre of CO2 you exceed, you have to multiply that with a the entire fleet.”
Arvind Chandrasekharan, page 19 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.