Tenneco Clean Air India Limited manufactures automotive clean air, powertrain and ride-performance components across its ART and CAPS segments, and reports into a quarter where Indian PV wholesales grew 30.7% YoY but its own input costs moved sharply against it. The print will speak to two things: whether the four-quarter EBITDA margin (VAR) slide from 18.8% to 17.9% extends amid record rubber and higher crude, and whether the promised domestic-vs-export order book split finally lands with Q2.
| Results date | November 04, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,544.75 Cr (+20.2% YoY) |
| Previous quarter PAT | Rs. 165.24 Cr (-1.7% YoY) |
| Previous quarter EBITDA margin | 17.9% on VAR (-175 bps YoY) |
| Market cap | Rs. 17,423.6 Cr |
| CMP | Rs. 431.7 |
The board will meet on November 4, 2026 to consider the Q2/H1 FY27 results; the trading window has been shut since October 1 until 48 hours after declaration.
The Q2 FY27 earnings call is scheduled for November 5, 2026 at 3:00 PM IST, with speakers Arvind Chandrasekharan (Whole-Time Director & CEO), Mahender Chhabra (CFO) and Roopali Singh (Company Secretary). An investor presentation is to be filed before the call.
The quarter tests whether Tenneco Clean Air India can hold its double-digit top-line growth guidance while the margin slide that began in Q2 FY26 extends into a fifth quarter. The demand backdrop inside the July-September window was exceptionally strong — SIAM PV wholesales of 1.36 mn units grew 30.7% YoY and FADA CV retail hit a record September of 1,03,557 units, up 37.6% YoY — against a served-market base that grew 16.2% in Q1 when the company's VAR outperformed by 2.2 pp.
Every named non-indexed input worsened across the window: domestic rubber rose to a record Rs. 290/kg by late October, Brent climbed from $94 in July through $100 on September 9 to a six-month high near $116, and the rupee traded in the 94.95-96.6 band, a direct drag on imported inputs. Steel, the indexed input, is back-to-back covered per management, so the pressure sits in rubber, plastics, LPG, CNG and argon, where Q1's offset from recoveries and productivity was 60 bps.
Management flagged 'further headwinds' in Q1 and anticipates the ongoing Middle East conflict could continue to affect costs, so listen for whether that language hardens on the call. The Rs. 124,000 Mn order book as of March 31, 2026 gives 100% visibility of the FY2028 internal revenue target, and the promised domestic-vs-export order book split is due with this quarter's disclosure.
Domestic vs export order book split: Management promised this disclosure at the end of Q2, and this call follows the Q2 close.
EBITDA margin (VAR) trajectory: The margin has stepped down four straight quarters: 18.8% (Q2 FY26) to 18.6% to 18.3% to 17.9% in Q1 FY27, now 90 bps below the FY26 record 18.8%.
FY27 capex and Kharkhoda greenfield: Capex is guided at an indicative Rs. 350-450 Cr for FY27, demand-linked and funded from internal accruals.
Order book and FY2028 revenue coverage: The incremental lifetime order book stood at Rs. 124,000 Mn as of March 31, 2026, up 26.02% over the half-year.
GST SCN and ownership structure: Two corporate developments since the last call carry into the quarter's narrative.
Steel is escalatable and back-to-back covered, but non-indexed commodities — rubber, plastics, crude oil, LPG, CNG and argon — are only partially recoverable from OEMs, and rupee depreciation added to the drag in Q1 FY27. EBITDA margin on VAR fell to 17.9%, down 175 bps YoY, even as revenue grew 20.2%.
CAPS VAR grew 9.6% YoY against a quoted industry 'mid-to-high teens', but management says the adjusted comparable market growth is 8-10% after excluding EVs (3-3.5% of the 16% served market) and the un-served Japanese OEM. Entry into that OEM comes via CAFE 3, with engine launches expected 2028-2029.
Exports were slightly over 7% of revenue in Q1 FY27, up from about 5% of sales pre-IPO, while the export order book stands at 14-20% of the total. Management is targeting a significant export ramp by 2028 under its 'Tenneco India for the world' strategy.
The CFO has guided to approximately Rs. 350-450 crores of FY27 capex to support double-digit top-line growth, funded from internal accruals while preserving the debt-free status. He explicitly flagged the range as indicative and demand-linked, not precise guidance.
The incremental lifetime order book stood at Rs. 124,000 Mn as of March 31, 2026, up 26.02% from Rs. 98,400 Mn six months earlier. It provides 100% visibility of the FY2028 internal revenue target and underpins a double-digit revenue CAGR over the next three years.
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