Tenneco Clean Q4 FY26 Results (NSE: TENNIND)
Signal: Steady quarter
The read
Q4FY26 delivered solid 17% revenue growth with stable margins; full year EBITDA margin reached record 18.8% and ROCE surged to 94%. Order book of ₹12,400 Cr covers 100% of FY28 target, underpinning mid-term visibility. Strategic wins in DCx DaVinci suspension and new OEM entry strengthen growth trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,552.4 Cr | 17.1% | N/A |
| Net profit | ₹166.8 Cr | 18.8% | |
| EBIT margin | 18.3% |
P&L walk
Revenue growth of 17.1% YoY driven by ART (+26%) outpacing Clean Air (+9.9%). EBITDA margin flat at 18.3% despite cost headwinds, with PAT growing slightly faster (+18.8%) due to stable other income/tax. For full year, EBITDA margin reached record 18.8% and ROCE doubled to 94%.
Segments
ART segment drove growth with 26% YoY revenue increase to 7,153 Mn, surpassing Clean Air & Powertrain (9.9% to 6,905 Mn); ART now contributes 46% of VAR vs 44% in Q4FY25.
Key positives
- Highest ever full year EBITDA margin at 18.8%, up 21bps YoY.
- ROCE improved to 94% from 57%, reflecting strong capital efficiency.
- Order book of ₹124,000 Mn covers 100% of FY28 revenue target, providing multi-year visibility.
- ART segment grew 26% YoY in Q4, outpacing Clean Air and increasing mix.
- Strategic wins include DCx DaVinci suspension for leading OEM, Clean Air entry with Japanese OEM, Euro VII PoC, and bearing systems entry.
Key concerns
- Q4 EBITDA margin flat at 18.3% despite revenue growth, impacted by geopolitical headwinds and incremental listing costs.
- Full year PAT margin declined 34bps to 12.3% despite margin expansion, likely due to higher tax or other costs.
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