In , Tenneco Clean Air India Ltd (Auto Ancillaries - Others) is outperforming Nifty 500 with +19.2% relative strength. Fundamentals: Weak. On a 12-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Revenue Coverage: 100% through FY28
Impact: Double-digit CAGR
“Importantly, this order book provides full 100% revenue coverage through FY 2028 and supports a clear double-digit CAGR visibility.”
What: Annual Revenue Potential: ₹220 Cr
“With an estimated annual revenue potential of around INR2,200 million for this one program alone... adoption of DaVinci DCx.”
What: Order Book Share: 20%
“Our order book remains very strong and well diversified with exports now contributing to over 20% of the total order book.”
What: Legislation Timeline: 2027
“I think again, somewhere around 2027. But once that comes, then we are in very good shape because then we will have a lot of content growth.”
What: EBITDA Growth: 25%
“In Q3, we delivered strong value added revenue growth of 15% year-over-year, alongside EBITDA growth of 25%, reflecting operating leverage.”
What: EBITDA growth of 24.8% YoY
“EBITDA for the Q3FY26 was INR2,225 million, a healthy 24.8% year-on-year increase with EBITDA margins at 18.6%.”
What: Growing faster than domestic → Strong double-digit CAGR
“New tariff and duty reduction announcements by the US and EU will strongly improve the tailwinds to allow us to grow our exports further.”
Earnings deceleration risks from management commentary
Trigger: Recently notified labor code required retroactive calculation of benefits.
Impact: PAT impact: ₹20.3 Cr
Management view: One-time hit; underlying business performance remains strong.
Monitor: labor
Trigger: Media rumors regarding concessions for smaller cars and tractor norms.
Management view: Management sees no pushback from OEMs who need to comply for export markets.
Monitor: regulatory
Trigger: Elevated prices of platinum, palladium, and rhodium.
Management view: Substrates are a pass-through; engineering solutions used to reduce loading.
Monitor: commodity
Key quotes from recent conference calls
“suffice to say that exports is going to grow much, much, much faster than our domestic business simply because they're starting from a low base. [Previous Export Order Book Growth guidance]”
“With an estimated annual revenue potential of around INR2,200 million for this one program alone, this win demonstrates our ability to translate mechanical innovation. [Initiative: DaVinci DCx Adoption]”
“we had a one-time impact of recently notified labour code, which required us to go back in time to calculate the full impact of statutory benefits. [Risk (labor): MEDIUM]”
“So I think look, there are always rumors on push back etc across CAFE, TREM 5, even BS 7 as you know. But from our standpoint we're not seeing that. [Risk (regulatory): LOW]”
Headline numbers from the latest earnings call
Revenue
₹1,285.3 Cr
Why: Growth was driven by higher volumes and a favorable product mix across segments.
Value Added Revenue (VAR) is the primary metric used by management to exclude pass-through substrate costs.
EBITDA
₹222.5 Cr
Why: Performance benefited from operating leverage, commercial actions, and effective cost management under the P3 operating model.
Margins remained stable despite the transition to a public listed entity.
PAT
₹118.8 Cr
Why: PAT was impacted by a one-time ₹20.3 Cr charge related to the recently notified labor code statutory benefits.
Adjusted PAT excluding the one-off impact would have been ₹139.1 Cr with an 11.7% margin.
Other Highlights
• ROCE levels exceeding 80% for 9MFY26.
• Order book provides 100% revenue coverage through FY2028.
• Exports now contribute over 20% of the total order book.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Content Per Vehicle Growth
Increasing
Why: Driven by tighter emission norms and adoption of advanced suspension systems.
Export % of Order Book
20%
Why: India's role as an export base is expanding due to cost arbitrage and technology equalization.
Capacity Utilisation
90%
Why: Strong volume growth across PV and CV segments.
Market Share - Shock Absorbers
52%
Why: Consolidation of position at a well-known Indian OEM.
Market Share - Off-Highway
68%
Why: Dominant position in Clean Air applications.
Asset Turnover (Net Block)
7x-8x
Why: Efficient capital investment through standardization and modular approach.
Order Book Revenue Coverage
100% through FY28
Why: Securing long-term lifetime bookings for new platforms.
EV Suspension Content
Higher
Why: EVs require more robust suspension due to vehicle density and lower center of gravity.
Forward-looking targets from management for FY2025-FY2028
Capex Plan
₹71 Cr
Double-digit CAGR
₹71 Cr
Greenfield plant in Kharkhoda, Haryana for Clean Air business.
Guidance Changes
Export Growth Outlook: Growing faster than domestic → Strong double-digit CAGR
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +14% | +1% | Insufficient Data |
| PAT (Net Profit) | -5% | +20% | Insufficient Data |
| OPM | 17.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Tenneco Clean Air India Ltd's latest quarterly results (Dec 2025) show
Tenneco Clean Air India Ltd's profit is declining with an insufficient_data trend.
Tenneco Clean Air India Ltd's revenue growth trend is insufficient_data.
Tenneco Clean Air India Ltd's operating margin is stable.
Tenneco Clean Air India Ltd's long-term compounding rates
Tenneco Clean Air India Ltd's earnings growth is insufficient_data with weakening on a sequential basis.
Tenneco Clean Air India Ltd appears significantly overvalued based on our fair value analysis.
Tenneco Clean Air India Ltd's current PE ratio is 45.8x.
Tenneco Clean Air India Ltd's current PE is 45.8x.
Tenneco Clean Air India Ltd's price-to-book ratio is 28.2x.
Tenneco Clean Air India Ltd is rated Weak with a fundamental score of 34.74/100. This score is calculated from objective financial metrics
Tenneco Clean Air India Ltd has a debt-to-equity ratio of N/A.
Tenneco Clean Air India Ltd's return ratios over recent years
Tenneco Clean Air India Ltd's operating cash flow is positive (FY2025).
Tenneco Clean Air India Ltd currently does not pay a significant dividend (yield 0.00%).
Tenneco Clean Air India Ltd's shareholding pattern (Mar 2026)
Tenneco Clean Air India Ltd's promoter holding has remained stable recently.
Tenneco Clean Air India Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Tenneco Clean Air India Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
Tenneco Clean Air India Ltd has 7 key growth catalysts identified from recent earnings analysis
Tenneco Clean Air India Ltd has 3 key risks worth monitoring
In Q3 FY26, Tenneco Clean Air India Ltd's management highlighted
Tenneco Clean Air India Ltd's management has provided the following forward guidance for FY2025-FY2028
Tenneco Clean Air India Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Tenneco Clean Air India Ltd may be worth studying
Tenneco Clean Air India Ltd investment thesis summary:
Tenneco Clean Air India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
