Tenneco Clean Air India Q2 FY27 Revenue Rises 34% to Rs 1,718 Crore

Tenneco Clean Air India Limited reported consolidated revenue of Rs 1,718.34 crore in Q2 FY27, a 34.18% year-on-year increase, while net profit rose 15.05% to Rs 173.36 crore for the quarter ended September 30, 2026. The results show higher sales and profit across the key reported lines, although operating-margin metrics were lower than a year earlier.

What did Tenneco Clean Air India report for Q2 FY27?

Tenneco Clean Air India reported consolidated revenue from operations of Rs 1,718.34 crore for the July-September 2026 quarter, compared with Rs 1,280.64 crore in Q2 FY26. Operating profit increased to Rs 261.58 crore from Rs 216.78 crore, while profit after tax rose to Rs 173.36 crore from Rs 150.68 crore.

The company also reported sequential growth. Revenue was up 11.2% from the preceding quarter, while net profit increased 4.9% quarter on quarter. The board approved the unaudited standalone and consolidated results at its meeting on November 4, 2026. Deloitte Haskins & Sells, the statutory auditor, issued unmodified limited-review conclusions on the financial statements.

Why did revenue grow faster than profit in the quarter?

Tenneco Clean Air India said revenue growth reflected demand across its product lines. Value-Added Revenue, or VAR, increased 32.2% year on year to Rs 1,522.9 crore, alongside the 34.2% increase in reported revenue from operations. The data points to a materially larger sales base during the quarter.

However, profit growth did not match revenue growth. Total expenses increased 35.8%, outpacing the reported revenue increase, and EBITDA rose 20.7% to Rs 261.6 crore. EBITDA margin on VAR declined by 165 basis points to 17.2%, with inflationary costs and listing-related expenses cited as factors. Operating margin was approximately 13.6%, compared with 14.9% in the corresponding quarter of the prior year.

The quarter did not include an exceptional item. Reported net profit growth was 15.0%, though the company’s disclosed comparison indicates growth would have been 20.4% excluding one-off interest income included in the previous year’s base quarter. This distinction is relevant when comparing the reported earnings trend with the underlying operating performance.

How did standalone performance compare with consolidated results?

Tenneco Clean Air India recorded standalone revenue from operations of Rs 718.4 crore in Q2 FY27, up 32.5% from Rs 542.1 crore in Q2 FY26. Standalone net profit increased 9.2% to Rs 102.7 crore, below the 15.05% growth reported in consolidated net profit.

The difference between standalone and consolidated profit growth was attributed to the absence of large inter-company dividend inflows in the standalone accounts during Q2 FY27. Such dividend income had lifted standalone profit in the comparable prior-year period. As a result, standalone earnings growth and consolidated earnings growth should not be viewed as directly equivalent measures of the quarter’s operating movement.

For the first half of FY27, consolidated net profit stood at Rs 338.6 crore, compared with Rs 318.8 crore in the corresponding six months of the prior year. The half-year comparison indicates that the company remained profitable through the first two quarters, while the September-quarter results supplied the stronger revenue increase.

What operating and balance-sheet details were disclosed?

Tenneco Clean Air India reported trade receivables of Rs 634.6 crore, which remained flat on the disclosed comparison basis. Inventories increased 28.8% to Rs 436.0 crore. The reported inventory position forms part of the working-capital picture alongside the company’s higher quarterly revenue.

The company also disclosed a Rs 45 crore capital expenditure plan for a new Clean Air plant in West India. Its reported order book was about Rs 16,500 crore. These figures indicate the scale of announced future manufacturing investment and the orders disclosed by the company, but the results do not provide a completion date for the new plant in the available information.

In Q1 FY27, Tenneco Clean Air India had reported revenue of Rs 1,544.75 crore, up 20.2% year on year. Its EBITDA margin on VAR in that quarter was 17.9%, down 170 basis points, with inflation, Middle East disruptions and listed-company costs identified in the disclosure. The Q2 margin of 17.2% on VAR shows that cost factors remained relevant despite stronger revenue growth.

What does the Q2 FY27 result mean for investors?

Tenneco Clean Air India’s Q2 result shows that revenue, operating profit and net profit all grew year on year. The 34.18% rise in consolidated revenue was the fastest of the three headline growth rates, while the 15.05% increase in net profit confirms that earnings also increased on a reported basis.

For investors, the margin trend is an important counterpoint to the higher revenue. Operating margin declined to about 13.6% from 14.9%, and EBITDA margin on VAR fell to 17.2%. The combination of rising sales, faster expense growth and lower margins means future disclosures on costs, pricing recovery and profitability will remain relevant to assessing the earnings profile.

The company had announced an earnings conference call for November 5, 2026 at 3:00 PM IST. Management’s discussion may provide further detail on the demand environment, the West India plant proposal, cost pressures and the reported order book. The provided results do not include guidance on revenue, margin or profit for the remaining quarters of FY27.

Conclusion

Tenneco Clean Air India delivered higher consolidated revenue of Rs 1,718.34 crore and net profit of Rs 173.36 crore in Q2 FY27, extending growth across its main reported financial measures. At the same time, expenses rose faster than revenue and margin indicators declined from the prior-year quarter, placing profitability quality alongside sales growth in the assessment of the results.

The next disclosed event is the November 5, 2026 earnings conference call. Investors will watch for management commentary on inflationary costs, pricing recovery, the Rs 45 crore West India plant plan, inventory levels of Rs 436.0 crore and progress against the reported Rs 16,500 crore order book.