Tenneco India FY2026 PAT Rises 9.3% with Record Margins

VAR (Value Added Revenue) grew 17.5% YoY in Q4 FY2026 and 12.3% YoY in FY2026 to ₹49,180 Mn, outperforming market volume growth of 13% and 10% respectively.
Key drivers include higher volumes, new program wins, and operational efficiencies through the P3 operating framework.
Secured strategic wins including first-ever Clean Air program with leading Japanese PV OEM in India, aftertreatment program with leading European commercial vehicle OEM, and first entry into Bearings systems with leading Japanese PV OEM.
Completed Euro VII Proof of Concept (PoC) for European Truck OEM, enabling readiness for future legislation.
Received Zero-Defect Supplier Award from Toyota in ART business and quality awards from Albonair and Isuzu.

Clean Air Solutions serves Commercial Trucks and Off-Highway Vehicles (excluding Tractors).
ART (Ride Performance) Business serves Indian Passenger Vehicles with Shock Absorbers & Struts.
DCx DaVinci suspension selected by leading Indian OEM with multiple new DCx applications.

Revenue (VAR): ₹49,180 Mn for FY2026 (+12.3% YoY); ₹14,058 Mn for Q4 FY2026 (+17.5% YoY)
EBITDA: ₹9,255 Mn for FY2026 (+13.5% YoY); ₹2,573 Mn for Q4 FY2026 (+17.6% YoY)
PAT: ₹6,044 Mn for FY2026 (+9.3% YoY); ₹1,668 Mn for Q4 FY2026 (+18.8% YoY)
EPS: Not Specified
Margins: EBITDA margin at 18.8% for FY2026 (highest ever, +21 bps YoY) and 18.3% for Q4 FY2026 (flat YoY); PAT margin at 12.3% for FY2026 (-34 bps YoY) and 11.9% for Q4 FY2026 (+13 bps YoY)
Drivers: P3 operating model efficiencies, better fixed cost absorption, commercial actions, and higher other income
Key Risks: Geopolitical headwinds since end-February 2026, cost inflation from geopolitical developments, one-time labor code impact

Net Debt/Equity: Net debt free company in FY2026
Reserves: Not Specified
Current Assets/Liabilities: Not Specified
Working Capital/Leverage Metrics: Cash Conversion Cycle shown but not quantified
Financial Health Insights: Strong cash generation, disciplined capital allocation, balance sheet strength reinforced

Capital Expenditure: ₹1,400 Mn total planned capex (₹710 Mn in Northern India expansion, ₹690 Mn in Western India expansion)
Free Cash Flow: FCF/EBITDA at 58% for FY2026 (excluding sale proceeds of Motocare, net of taxes)
Operating Cash Flow: Not Specified
Net Debt Movement: Maintained net debt free status
Investment Rationale: Support future growth demand across both business units, capture incremental growth opportunities

Investments in Innovation: P3 operating framework (People, Performance, Pride), global engineering capabilities, 39 R&D and Technical Centers globally
Expected impact: Robust order book of ~₹124,000 Mn provides 100%+ visibility of FY2028 target revenues, supporting double-digit CAGR trajectory
Strategic Rationale: Scale manufacturing capabilities, strengthen customer partnerships, position India as global export hub

Macro/Industry Trends: Trends towards premiumization, tightening emission standards (Euro VII readiness), geopolitical developments
Impact on Company: Cost inflation from geopolitical developments mitigated through commercial actions and efficiency initiatives

Strategic Outlook: "Building a resilient, diversified, and execution led business model" with focus on long-term value creation
FY Guidance: Order book covers more than 100% of FY2028 target revenues underpinning healthy double-digit CAGR trajectory
Market Share Targets: Market leadership or top 2 position in every end market segment served
Risks and Opportunities: Geopolitical headwinds, execution challenges, regulatory changes

Sustainability: Tenneco Group received EcoVadis' Sustainability Ratings - Gold 2024 and Ethisphere's World's Most Ethical Companies 2023