Tenneco Clean Air India Q2 FY27 results: net profit up 15.1% to ₹173.36 crore, revenue up 34.2%

How did Tenneco Clean Air India perform in Q2 FY27?

Tenneco Clean Air India reported consolidated revenue from operations of ₹1,718 crore for Q2 FY27, up 34.2% from ₹1,281 crore in Q2 FY26 and 11.2% from ₹1,545 crore in Q1 FY27. Total income was ₹1,727.5 crore, up 33.6% year on year. EBITDA rose to ₹261.58 crore from ₹216.78 crore a year earlier and ₹246.88 crore in the previous quarter.

The EBITDA margin was 15.2% in Q2 FY27 against 16.9% in Q2 FY26 and 16.0% in Q1 FY27. Profit before tax was ₹232.77 crore, up 21.0% from ₹192.43 crore a year earlier, while net profit was ₹173.36 crore against ₹150.68 crore. Basic EPS was ₹4.29 against ₹3.73. On a standalone basis, the company reported revenue of ₹718.42 crore and profit after tax of ₹102.72 crore.

What changed in Tenneco Clean Air India's costs and profit?

Total expenses rose 35.8% to ₹1,495 crore in Q2 FY27 from ₹1,100 crore in Q2 FY26, outpacing the 34.2% rise in revenue. Cost of materials consumed was ₹1,137 crore, up ₹295.20 crore or 35.1%, and other expenses were ₹202.30 crore, up ₹59.18 crore or 41.3%. Employee cost rose ₹18.41 crore or 24.5% to ₹93.56 crore, and depreciation rose ₹2.21 crore or 8.6% to ₹28.03 crore.

Finance costs fell ₹0.67 crore or 6.3% to ₹9.93 crore, while other income fell ₹2.90 crore or 24.0% to ₹9.16 crore. Tax expense rose ₹17.68 crore or 42.4% to ₹59.42 crore. There was no exceptional item in the quarter, and the PAT margin was 10.1% against 11.8% a year earlier, a decline of 1.7 percentage points.

Management said inflationary pressures linked to geopolitical developments remained elevated during the period, and that the impact was substantially offset through commercial recovery actions, productivity improvements and disciplined cost control. Management also said incremental administrative costs associated with becoming a listed entity partially offset Q2 operating efficiencies.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹3,263.09 crore, up 27.2% from ₹2,566.26 crore in H1 FY26. Total income rose 25.7% to ₹3,280.91 crore from ₹2,609.14 crore, and profit before tax was ₹452.18 crore against ₹419.64 crore.

Net profit for the first half was ₹338.59 crore, up 6.2% from ₹318.77 crore, and EPS was ₹8.38 against ₹7.89. Management said the prior-year period included one-time interest income related to the Motocare entity sale of INR 67 Mn net of tax for the quarter and INR 254 Mn net of tax for the half year. Excluding this item, management said adjusted Q2 and H1 PAT growth was 20.4% and 15.4%.

What do the balance sheet and cash flow show?

Total assets rose to ₹3,042.38 crore as on 30 September 2026 from ₹2,537.09 crore as on 31 March 2026, and total equity rose to ₹1,539.91 crore from ₹1,200.53 crore. The company reported no borrowings at either date. Cash and cash equivalents stood at ₹914.63 crore against ₹571.23 crore, inventories were ₹435.97 crore against ₹338.38 crore, and trade receivables were ₹634.63 crore against ₹634.83 crore.

For H1 FY27, net cash from operating activities was ₹467.72 crore against ₹1,122.02 crore in H1 FY26. Investing cash flow was negative ₹101.39 crore against positive ₹17.74 crore, financing cash flow was negative ₹22.93 crore against negative ₹1,057.97 crore, and capital expenditure was ₹119.06 crore against ₹24.59 crore.

How has Tenneco Clean Air India done over the last 5 quarters?

Revenue rose across each of the last five quarters, from ₹1,280.64 crore in Q2 FY26 to ₹1,718 crore in Q2 FY27. The highest quarterly figure in the period was reported in Q2 FY27, while the lowest was in Q2 FY26.

Net profit was lowest at ₹118.81 crore in Q3 FY26 and highest at ₹173.36 crore in Q2 FY27. The EBITDA margin peaked at 17.3% in Q3 FY26 and bottomed at 15.2% in Q2 FY27, so the latest quarter recorded the highest revenue and profit in the series but the lowest margin.

What else did the company announce?

The board approved the proposal for capacity expansion by setting up a new factory in Western India. Existing annualised capacity is ~2 to 2.2 million 'hot end' products, or catalytic converters, depending on product mix, with capacity utilisation of ~99%. The proposed addition is ~0.3 million units, to be added in a phased manner over the next 2-3 financial years.

The company said the proposed capacity requires an investment of ~INR 450 million, to be financed through internal accruals. The stated rationale was growth in demand and an improving manufacturing footprint in Western India. The board also approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, which were subject to limited review by Deloitte Haskins & Sells.

What did Tenneco Clean Air India's management say?

Management said Value Added Revenue grew 32.2% in Q2 and 25.3% in H1, while volumes grew 25.4% in Q2 and 20.7% in H1. Management said the growth reflected overall market growth, market share gains and disciplined execution, with the Q2 increase driven by higher volumes and the continued ramp-up of new programme launches.

Management said the incremental lifetime order book of ~INR 165,000 Mn covers more than 100% of the FY2030 revenue target and underpins a healthy double-digit CAGR trajectory for FY'25-FY'30. The order book includes ~INR 8,750 Mn of export orders. Management said these orders are based on OEM confirmation of volume and price but have not yet entered production.

Management said capacity expansion, localisation and innovation will continue, including a new West India Clean Air manufacturing facility at INR 450 Mn. Management listed risks including elevated inflationary and commodity headwinds linked to geopolitical developments, contracted EBITDA and PAT margins, incremental administrative costs as a listed entity, and the fact that the order book has not yet entered production. No analysts' questions are recorded in the available documents.

How did Tenneco Clean Air India shares react?

The results were published after market hours on 4 November 2026. From the price when the filing appeared, the stock rose 2.5% after 5 minutes, 1.8% after 15 minutes and 1.6% after 30 minutes. On the reaction day, the stock closed 0.8% higher than the previous close of ₹464.65.

The Auto Components & Equipments sector's other stocks recorded a median move of 1.2% over the same closes, so Tenneco Clean Air India moved 0.4 percentage points below the industry median on the reaction day. Moves one and five sessions after the results were not available.

Earlier results-day reactions were negative: the stock fell 2.1% on 5 August 2026, 4.8% on 30 May 2026 and 0.9% on 13 February 2026, while it was unchanged on 5 December 2025.

How did other Auto Components & Equipments companies do?

Fifty Auto Components & Equipments companies have filed for this quarter. Their median revenue growth was 33.3%, compared with Tenneco Clean Air India's revenue growth of 34.2%. Of the other companies, 27 grew revenue more slowly than Tenneco Clean Air India and 22 grew faster.

Profit was higher for 39 of the 51 peers whose profit figures were compared.