Tenneco India Q2 VAR rises 32.2%, order book reaches Rs 16,500 crore

Tenneco Clean Air India Limited reported Q2 FY'27 value-added revenue growth of 32.2% to Rs 1,522.9 crore, while its lifetime order book reached about Rs 16,500 crore as of 30 September 2026. Tenneco India’s EBITDA margin on value-added revenue declined 165 basis points year on year to 17.2%.

How did Tenneco India perform in Q2 FY'27?

Tenneco India increased revenue from operations by 34.2% year on year to Rs 1,718.3 crore in Q2 FY'27, from Rs 1,280.6 crore in Q2 FY'26. Value-added revenue, or VAR, its primary performance metric, rose 32.2% to Rs 1,522.9 crore from Rs 1,151.5 crore. VAR excludes pass-through substrate costs from revenue from operations.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 20.7% to Rs 261.6 crore from Rs 216.8 crore. Profit after tax, or PAT, increased 15.0% to Rs 173.4 crore from Rs 150.7 crore, although Q2 FY'26 included Rs 6.7 crore of net-of-tax one-time interest income relating to the Motocare entity sale. Excluding that item, Tenneco India said PAT grew about 20.4%.

Why did Tenneco India’s Q2 EBITDA margin decline?

Tenneco India’s EBITDA margin on VAR declined to 17.2% in Q2 FY'27 from 18.8% a year earlier, a fall of 165 basis points. The company attributed the movement to significant inflationary increases related to the current geopolitical situation and incremental costs of operating as a listed public company.

Productivity gains under the People, Performance, Pride operating system and commercial discipline partly absorbed these costs, according to Tenneco India. PAT margin on VAR declined 170 basis points to 11.4% from 13.1%, while EBITDA increased 20.7%, below the 32.2% increase in VAR. The prior-year Motocare interest income also affected the reported PAT comparison.

Which Tenneco India segments drove first-half growth?

Tenneco India’s Advanced Ride Technologies, or ART, segment was the faster-growing business in H1 FY'27, with VAR rising 32.9% to Rs 1,520.1 crore from Rs 1,143.4 crore. Clean Air and Powertrain, or CA and PT, VAR increased 17.8% to Rs 1,384.3 crore from Rs 1,174.7 crore. ART therefore represented slightly more than half of H1 VAR of Rs 2,904.4 crore.

For H1 FY'27, revenue from operations rose 27.2% to Rs 3,263.1 crore and VAR grew 25.3% to Rs 2,904.4 crore. EBITDA increased 14.1% to Rs 508.5 crore, while EBITDA margin on VAR fell 172 basis points to 17.5%. PAT grew 6.2% to Rs 338.6 crore, with H1 FY'26 including Rs 25.4 crore of net-of-tax Motocare interest income.

Tenneco India reported volume growth of 25.4% in Q2 FY'27 and 20.7% in H1 FY'27. ART held about 55% share of the passenger-vehicle market in H1 FY'27, according to a Crisil report, and secured content on three platforms with an Indo-Chinese joint venture. CA and PT held about 59% share of the commercial-truck market and added commercial-vehicle exhaust, compressed natural gas cold-end assembly and spark-plug awards.

What does Tenneco India’s order book cover?

Tenneco India’s lifetime order book was about Rs 16,500 crore as of 30 September 2026, and management said booked business exceeded 100% of its FY'30 revenue plan. ART accounted for roughly 65% of the order book and CA and PT for roughly 35%, making ART the larger source of future awarded business. Export programmes represented about Rs 875 crore.

The company defines lifetime order book as secured orders where original equipment manufacturers have confirmed volumes and prices but production has not begun. Tenneco India said these orders enhance revenue visibility for approximately five to six years. Its forward-looking statement noted risks including vehicle demand, customer programme timing and volumes, commodity prices, foreign exchange rates, regulation and economic conditions.

What capacity investment has Tenneco India announced?

Tenneco India announced a new Clean Air manufacturing plant in West India with capital expenditure of about Rs 45 crore. The facility is intended to keep capacity ahead of order commitments and is additional to a North India plant announced in FY'26. The release did not disclose the West India plant’s location, output capacity or commissioning date.

Management said it would continue investing in capacity expansion, localisation and innovation. Tenneco India operates 12 manufacturing facilities and two research and development centres in India, supplying clean-air, powertrain and suspension products to passenger vehicles, commercial vehicles, off-highway vehicles and industrial applications. Its product range includes catalytic converters, diesel particulate filters, selective catalytic reduction systems, spark plugs, strut assemblies and shock absorbers.

Conclusion

Tenneco India delivered Q2 FY'27 growth in revenue, VAR, volume and earnings, with VAR up 32.2% and revenue from operations up 34.2%. ART outgrew CA and PT in H1 FY'27, while profitability did not keep pace with sales, as EBITDA margin on VAR fell to 17.2% from 18.8% amid inflationary and listed-company costs.

The next disclosed developments to watch are conversion of the Rs 16,500 crore lifetime order book, including Rs 875 crore of export programmes, into production over the indicated five-to-six-year period. Progress on the approximately Rs 45 crore West India Clean Air plant also matters, while management’s FY'30 revenue-plan comparison remains dependent on confirmed customer volumes and programme timing.