Tenneco Clean Air India Limited (TENNIND)
Small CapAuto stocks · Small cap · NSE
Tenneco Clean Air India Limited is an auto ancillary company manufacturing clean air and powertrain solutions, and advanced ride technologies. It focuses on technology differentiation, customer-centric execution, and operational discipline, serving global and Indian OEMs with a strong emphasis on localization and profitable growth.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -2% YoY · margin compression · Rev +20% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,545 Cr | +20.1% | -0.5% |
| EBITDA | ₹247 Cr | +7.9% | -3.9% |
| Operating margin | 16.0% | -200 bps | -100 bps |
| PAT | ₹165 Cr | -1.8% | -1.2% |
| PAT margin | 10.7% | -238 bps | -8 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Tenneco Clean Air India reported its best-ever full year performance in FY26, with value-added revenue up 12.3% YoY and EBITDA margin reaching a record 18.8%. Q4 FY26 also saw strong growth, with VAR up 17.5% YoY and EBITDA up 17.6% YoY, despite geopolitical cost pressures.
The company delivered record profitability and strong growth in FY26, driven by operational discipline and new program wins. A robust order book, strategic capacity expansions, and technology differentiation in both Clean Air and Advanced Ride Technologies segments provide strong visibility for sustained profitable growth.
Value Added Revenue by Business Unit (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
DCx DaVinci Advanced Mechanical Suspension System
Adopted by a leading Indian OEM for a next-generation flagship SUV platform, with scope expanding to multiple new DCx applications across other OEMs.
Strategic Entry into Japanese PV OEM for Clean Air
Big breakthrough win for Clean Air business with a leading Japanese passenger vehicle OEM in India, marking entry into a previously untapped segment.
Entry into Bearings Systems Business
Won in Q4 a strategic entry into the bearings systems business with a leading Japanese passenger vehicle OEM, marking entry into a previously untapped segment.
Exports Growth
Export order book has been strengthened and will continue to grow, coming in way stronger than current sales levels across multiple geographies.
New Clean Air Facility in North India
Previously announced Clean Air facility in North India in Q3 FY26 to support Japanese customers and commercial truck/off-highway customers.
New Advanced Ride Technologies Plant in West India
Setting up a new greenfield Advanced Ride Technologies plant in West India to meet future demand for growing market and new technologies like DaVinci DCx.
Total Capex for New Plants
Together, these projects represent an announced capex of approximately INR1,400 million.
Commissioning and Volume Ramp-up Timeline
Plants will take somewhere between six months to a year to commission, with actual peak volumes happening somewhere in mid-2028 to 2029.
Technology Equalization for Exports
India's technology (BS6.2 with RDE) is now equal to Europe (Euro 6 with RDE), allowing export of similar products.
Supply Chain Diversification (China Plus One)
Many OEMs are looking to India as a source for products from a China plus one diversification standpoint.
Improving Labor Cost Arbitrage and Currency Depreciation
India's best-cost labor and depreciating currency make products more export-worthy and competitive, offering an immediate 15-20% improvement in global market competition.
CAFE 3 and BS7 Norms
CAFE 3 and BS7 norms will create an addressable market of INR1,300 to INR1,400 crores of additional content per vehicle in the next 3-5 years.
Elevated Geopolitical Cost Pressures
Q4 was strong despite elevated geopolitical cost pressures, which were mitigated through timely commercial actions and operational efficiencies.
OEM Mix Issues Affecting Clean Air Growth
Clean Air growth was 'a bit tepid' due to within-OEM mix (lower-end vs. higher-end SUVs) and between-OEM mix (more EVs vs. ICE vehicles).
External Cost Pressures and Recoveries
Indirect costs like freight, plastics, rubber, LPG, CNG, and crude oil have gone up, requiring tough discussions with customers for recoveries.
OEM Sales Mix Shifts
Growth can be impacted by OEM mix issues, such as shifts towards lower-end vehicles or EVs, even without loss of competitive share.
New Technology Localization
Initially, new technologies might require importing sub-components, which could temporarily impact the 90% localization strategy.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company consistently reports both Q4 and full-year results with year-over-year comparisons, indicating that annual and seasonal trends are more relevant for performance assessment in its business segments.
Value Added Revenue (VAR) Growth FY26
Value added revenue growth of 12.3% year-over-year to INR49,180 million for the full year.
EBITDA Margin FY26
Achieved highest ever EBITDA margin of 18.8%, expanding by 21 points over the last year.
Return on Capital Employed (ROCE) FY26
ROCE improved significantly to 94%, up from 57% in FY25, reflecting higher profitability and efficient capital utilization.
Lifetime Order Book
As of March 31, 2026, our lifetime order book stands at INR124,000 million, providing 100% visibility of FY2028 internal revenue target.
Focus on Sustained Profitable Growth
Well-positioned to sustain profitable growth while continuing to create long-term value, building on a strong foundation for FY27.
Strategic M&A Consideration
Will be looking at M&A as well as other strategies to get into areas which also give a good shot at good margins.
Targeting DaVinci DCx Market Penetration
Wish is to make DaVinci DCx standard across the entire SUV range from mid to premium segment, targeting about 50% of India's PV market.
India as an Export Hub
Strengthening capabilities in advanced emissions technologies and readiness for future legislations to further India as an export hub for the world.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Export Revenue Ramp-up | Current exports 5-6% of sales; export order book 14-20%. | Critical mass of exports hitting around 2028 timeframe, with ramp-up starting 2027-2028 and continuing into 2029. |
| New Plant Commissioning and Volume Ramp-up | New Clean Air plant in North India and ART plant in West India announced with INR1,400 million capex. | Commissioning within 6 months to a year, with peak volumes expected in mid-2028 to 2029. |
| New Bearings Business Value | Achieved strategic entry into bearings systems business with a leading Japanese PV OEM. | Management to publish exact numbers for the bearings business when they become available. |
| Content per Vehicle from CAFE 3 and BS7 | CAFE 3 and BS7 norms expected to create INR1,300-1,400 crores additional addressable market. | Realization of increased content per vehicle, particularly for petrol engines requiring Gasoline Particulate Filters from mid-2027. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Strategic wins of INR 98.4 billion in incremental lifetime bookings, including INR 17.6 billion of exports, will materially enhance the company's revenue visibility over the next five to six years.
"revenue visibility over the next five to six years"
The Indian automotive market is expected to continue to premiumize in the coming years, driving demand for suspension and ride performance systems.
"India market continues to premiumize in the coming years"
The company's exports, which currently reach 20 countries, are poised to grow further.
"poised to grow further"
Stricter emission standards are raising the need for more advanced clean air and powertrain solutions across all vehicle segments.
"raising the need for more advanced clean air"
Trend score and candlestick chart
34BearishSMA20 -2.2% / mo · MACD − · sector -3.3pp vs Nifty (3M)
Technical chart
TENNINDdaily · 1Y · AUTO-4.2%Daily history is available from 2025-11-19; the requested 1Y window is partially covered.
Daily technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 36.
- SMA20 falling (~2.3% over last month) — short-term momentum negative.
- RSI(14) at 36 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 21% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 8.7% below the 30-week proxy without full trend alignment.
- The 30-week proxy changed +0.4% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 6.5%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 22.8%.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Growth is weaker at 12/25; verify the latest quarterly trend.
- Balance sheet is weaker at 11/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Claim history is still being built. It ranks around the 100th percentile of the scored universe and 100th percentile within Auto. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 74.8%.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · Auto: 100th pctile, median 74 · Small: 100th pctile, median 66
16 documents have extracted text, but claim history is not strong enough yet.
4 claims extracted · No contradicted claim yet
How to read this Trust Score
High Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 6.5%.
- ▸4 years of positive FCF.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 33.70
- P/B
- 17.44
- EV/EBITDA
- 19.87
- Market Cap
- 20889.00Cr
Profitability
- ROE
- 44.40%
- ROCE
- 60.80%
- ROA
- 23.73%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 4.07%
- EPS 5Y
- 12.12%
- Revenue 3Y
- 4.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 0.04
- Interest Coverage
- 26.94×
- Altman Z
- 10.07
- Book Value
- 29.70
Cash Flow
- FCF Yield
- 6.51%
- FCF Positive Y
- 4/5
- OCF
- 1429.00 Cr
- EPS TTM
- 14.89
Shareholding
- Promoter Hold
- 74.79%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 37%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
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