Tenneco Clean Air India (TENNIND) Q2 25/26 earnings summary

Executive summary

• Achieved strong Q2 and H1 FY26 results with value-added revenue (VAR) growth of 8.9% and 8.2% YoY, outpacing the served market, driven by new order wins in Clean Air Systems and Advanced Ride Technologies, and strategic entry into new OEM segments.

• Secured INR 98.4 billion in new lifetime bookings, enhancing multi-year revenue visibility for the next 5-6 years.

• Completed IPO on 19 November 2025, oversubscribed by over 61 times, listing 90,680,100 equity shares at INR 397 per share, reflecting strong investor confidence.

• Maintained market leadership in clean air for commercial trucks and off-highway OEMs, and in shock absorbers for passenger vehicles, increasing market share to 52%.

• Net profit for H1 FY26 was INR 3,188 million, up from INR 2,874 million YoY.

Financial highlights

• Q2 FY26 VAR: INR 11,515 million, up 8.9% YoY; reported revenue: INR 12,806 million, up 9.6% YoY.

• Q2 EBITDA: INR 2,168 million (18.8% margin), up 5.7% YoY; PAT: INR 1,507 million (13.1% margin), up 9.9% YoY.

• H1 FY26 VAR: INR 23,181 million, up 8.2% YoY; reported revenue: INR 25,663 million, up 5.2% YoY.

• H1 EBITDA: INR 4,457 million (19.2% margin), up 6.6% YoY; PAT: INR 3,188 million (13.8% margin), up 10.9% YoY.

• Profitability supported by volume growth, improved product mix, operational and capital efficiencies, and stable material costs.

Outlook and guidance

• Exports expected to grow significantly faster than domestic business, driven by both third-party and group orders.

• Margins may be slightly softer in the near term due to public company compliance costs and new Labour Codes, but are expected to normalize as revenue grows.

• Anticipates positive impact from upcoming emission norms (TREM V) around 2027, which will drive clean air segment growth.

• Expanding order pipeline and export traction support confidence in sustaining market outperformance and long-term value creation.

• Industry tailwinds in regulation, premiumization, and exports expected to drive future growth.