Tenneco Clean Q1 FY27 Results (NSE: TENNIND)
Signal: Growth reaccelerated
The read
The trajectory remains growth-positive but margin-sensitive: consolidated revenue rose 20.2% YoY and VAR revenue grew 18.4%, ahead of the served market's 16.2% volume growth, while VAR EBITDA margin fell 175bps YoY to 17.9% because commodity escalation and listing costs absorbed much of the operating progress; PAT was broadly stable at ₹165.04 Cr after the prior-year one-time interest benefit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,544.75 Cr | +20.2% | N/A |
| EBIT | ₹227.78 Cr | N/A | |
| Net profit | ₹165.04 Cr | -1.7% | |
| EPS | ₹4.09 | N/A | |
| EBIT margin | 16.5% |
P&L walk
Consolidated revenue was ₹1544.75 Cr, up 20.2% YoY, led by 18.4% growth in value-added revenue; EBITDA was ₹255.54 Cr with margin at 16.5%, down from the prior-year comparable margin cited in the release as commodity escalation and listing costs weighed on profitability, while PAT was ₹165.04 Cr, down 1.7% YoY.
Segments
Advanced Ride Technologies was the faster-growing business, with revenue up 27.9% YoY to INR 7,190 million versus 9.6% growth for Clean Air & Powertrain to INR 6,626 million; consolidated PAT of ₹165.04 Cr also exceeded standalone PAT of ₹90.67 Cr.
Key positives
- Value-added revenue rose 18.4% YoY to INR 13,816 million, ahead of the served addressable market's 16.2% volume growth, indicating content, mix and market-share gains rather than volume alone.
- Advanced Ride Technologies revenue increased 27.9% YoY to INR 7,190 million, materially faster than Clean Air & Powertrain growth of 9.6% to INR 6,626 million.
- The company added four new customers for DCx Da Vinci in 2026 and secured multiple new program nominations, including spark plugs, passenger-vehicle hot-end systems, CNG cold-end assemblies and a commercial-vehicle after-treatment program.
- Despite a 175bps YoY decline in VAR EBITDA margin to 17.9%, management cited productivity improvements, commercial discipline and operational excellence as offsets to commodity escalation and listing-related costs.
- Passenger-vehicle shock absorber and strut market share increased 300bps YoY to 55% in FY2026.
Key concerns
- VAR EBITDA margin declined 175bps YoY to 17.9% despite 18.4% VAR revenue growth, showing that commodity escalation and listing-related costs are currently absorbing operating gains.
- Consolidated PAT fell 1.7% YoY to ₹165.04 Cr despite 20.2% revenue growth, although the comparison was affected by approximately ₹187 million of one-time post-tax interest income in Q1FY26.
- The filing does not disclose raw-material costs, gross margin, working-capital metrics, capex or cash flow, limiting assessment of cost pass-through and cash earnings quality.
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