Tenneco Clean Air India Hits 14.7% Growth with Groundbreaking SUV Tech

Tenneco Clean Air India Limited has reported a strong third quarter for FY2026, with robust top-line growth, healthy operating performance, and fresh technology wins that underline its positioning as a key Tier-1 supplier to Indian and global OEMs. The quarter also saw the company sharpen its focus on exports and capacity expansion to support future programs.

Alongside the financials, Tenneco India announced a major technology milestone with its DaVinci DCx advanced suspension system being selected for a new flagship SUV platform, as well as a high-value Clean Air business win with a leading European commercial vehicle OEM.

Strong Q3 FY2026 financial performance

For Q3 FY2026, Tenneco Clean Air India reported revenue from operations of Rs 12,853 million, up 14.2% from Rs 11,251 million in Q3 FY2025. Value-added revenue (VAR), the company’s primary performance metric, grew 14.7% year-on-year to Rs 11,941 million from Rs 10,412 million, driven by higher volumes and new program ramp-ups.

EBITDA on a VAR basis rose 24.8% to Rs 2,225 million, with margins improving to 18.6% versus 17.1% a year ago, supported by operating leverage, commercial actions, and disciplined cost management. Reported PAT stood at Rs 1,188 million with a 9.9% margin on VAR, while adjusted PAT came in at Rs 1,391 million, reflecting an 11.7% margin.

Segment momentum and technology-led growth

Both the Clean Air & Powertrain and Advanced Ride Technologies (ART) businesses contributed to the quarter’s performance. Clean Air & Powertrain revenue rose to Rs 5,644 million from Rs 5,354 million, while the ART portfolio surged to Rs 6,297 million from Rs 5,058 million, marking 24.5% year-on-year growth.

A key highlight was the selection of the DaVinci DCx advanced suspension system by a leading Indian OEM for its new-generation flagship SUV platform, which has already been recognized for its ride performance by top automotive reviewers. The program is estimated to generate around Rs 2,200 million in annual revenue and positions DaVinci DCx as a market-ready solution for the competitive mid-premium SUV segment.

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DaVinci DCx: global tech tuned for Indian roads

The DaVinci DCx system embodies a mechanical-first approach to delivering premium ride comfort without relying on complex electronics, software, or actuators. Instead, it uses specially designed discs or shim stacks to control hydraulic flow inside the damper, ensuring consistent comfort across varying speeds and road conditions, while also enabling faster time to market and an affordable cost structure for OEMs.

Clean Air program win and new Kharkhoda plant

Beyond suspension, Tenneco Clean Air India secured a high-value strategic Clean Air program with a leading global commercial vehicle OEM, based on a modular inline BS VI aftertreatment system. The program carries an annual revenue potential of about Rs 1,150 million and allows the OEM to retain its captive engine while optimizing overall system cost.

To support its growing Clean Air business, the company’s board has approved a new greenfield Clean Air manufacturing plant in Kharkhoda, Haryana. The facility, involving an investment of roughly Rs 710 million, is designed to enhance proximity to northern OEM customers across light vehicles.

Export tailwinds and long-term visibility

Exports remain a strong pillar for Tenneco Clean Air India, with the company highlighting a higher export mix compared to domestic business and the associated margin benefits. Recent tariff and duty reductions in the US and EU are expected to further strengthen export tailwinds and support accelerated growth in overseas markets.

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Notably, the company’s current lifetime order book already covers 100% of its projected FY2028 revenue, underpinning expectations of a double-digit CAGR over the next three years and reinforcing long-term visibility.