Financial Performance
Tenneco Clean Air India Limited reported exceptional FY26 financial results with record profitability. On a standalone basis, revenue from operations reached INR 22,885.20 million (FY25: INR 22,367.55 million) with profit after tax surging to INR 12,028.39 million (FY25: INR 3,060.82 million). Consolidated performance showed revenue from operations of INR 54,039.76 million (FY25: INR 48,904.30 million) and net profit of INR 6,043.59 million (FY25: INR 5,531.43 million). The company achieved value-added revenue growth of 12.3% to INR 49,180 million and recorded its highest-ever EBITDA margin of 18.8%, with ROCE improving to 94% from 57% in FY25.
IPO and Corporate Restructuring
The company successfully completed its Initial Public Offering in November 2025, listing on both NSE and BSE with the IPO oversubscribed 61.8 times overall and 174.8 times in the QIB portion. The IPO involved an Offer for Sale of 90,680,100 equity shares aggregating INR 36,000 million. Prior to listing, the company underwent significant restructuring including a common control business combination where it acquired four fellow subsidiaries (Tenneco Automotive India, Federal-Mogul Ignition, Federal-Mogul Sealings, and Federal-Mogul Bearings) through a share swap arrangement, issuing 189,515,480 equity shares. This reorganization was accounted for using the pooling of interests method.
Operational Highlights and Business Segments
The company secured a robust order book of INR 1,24,000 million providing visibility through FY 2027-28. The Clean Air & Powertrain Solutions segment reported revenue of INR 29,155 million with value-added revenue growth of 5.5% YoY, while the Advanced Ride Technologies segment showed strong growth with revenue of INR 24,885 million (up 19.7% YoY). Key achievements included entry into Japanese passenger vehicle OEM, European commercial truck wins, Euro VII proof-of-concept, and the DaVinci DCx suspension system selection for a flagship SUV platform with INR 2,200 million annual potential.
Manufacturing and Capacity Expansion
The company operates 12 manufacturing facilities and 2 R&D centers across India with Clean Air capacity utilization at 51% (Cold Ends) and 78% (Hot Ends). New plants were approved including a Clean Air facility in North India and Advanced Ride Technologies facility in Western India with total investment of INR 1,400 million. The company maintained a negative cash conversion cycle of 23 days and zero net debt position.
Corporate Governance and Compliance
The Board comprises 8 Directors with 3 Independent Directors (including 1 woman director), 4 Non-Executive Non-Independent Directors, and 1 Executive Director. The Board held 18 meetings during FY26 focusing on IPO-related matters and transition to listed entity status. The company maintained full compliance with SEBI Listing Regulations, conducted secretarial audit by RPA and Partners, and statutory audit by Deloitte Haskins & Sells LLP with unmodified opinions on both standalone and consolidated financial statements.
Dividend Distribution and Capital Management
The company paid four interim dividends during FY26 totaling INR 10,365.85 million to shareholders. No final dividend was recommended due to growth investments. The company underwent capital reduction schemes approved by NCLT Chennai, reducing paid-up share capital from INR 7,777.1 million to INR 2,140.9 million.
Subsidiary Performance and ESG Initiatives
Subsidiaries contributed significantly to consolidated performance with Tenneco Automotive India reporting revenue of INR 24,884.71 million and PAT of INR 2,439.77 million. The company demonstrated strong ESG performance with 23% renewable energy share, 16% YoY reduction in Scope 1 & 2 emissions, 99.8% waste recycling rate, and safety performance of LTIFR 0.28 with zero fatalities. CSR initiatives included INR 69.31 million spend focused on skill development, healthcare, sports promotion, and environmental sustainability.