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 and driven by new order wins in Clean Air Systems and Advanced Ride Technologies, as well as strategic entry into new OEM segments.

• Secured INR 98.4 billion in incremental lifetime bookings, including INR 17.6 billion in exports, enhancing multi-year revenue visibility.

• Successfully transitioned to a listed company with an IPO oversubscribed 61 times, listing 90,680,100 shares at INR 397 per share, reflecting strong investor confidence.

• Net profit for H1 FY26 was INR 3,188 million, up from INR 2,874 million YoY, with robust operational execution and focus on localization, technology, and export growth.

• Interim dividends totaling INR 8,649.24 million declared during the period, with dividend income of INR 8,617.47 million received from a subsidiary.

Financial highlights

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

• H1 FY26 VAR: INR 23,181 million, up 8.2% YoY; revenue from operations: INR 25,663 million, up 5.2% 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 EBITDA: INR 4,457 million (19.2% margin), up 6.6% YoY; PAT: INR 3,188 million (13.8% margin), up 10.9% YoY.

• Operating cash flow for H1: INR 11,220 million; CapEx: INR 246 million; cash and cash equivalents as of 30 September 2025: INR 3,676.94 million.

Outlook and guidance

• Exports expected to grow much faster than domestic business, driven by both third-party and intra-group demand.

• Margins may be slightly soft 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, especially for clean air business.

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