BlackRock and Goldman Sachs backed stock in focus after announcing its Q2 result

Synopsis:
The shares of this auto ancillary company were in the news today following the announcement of its Q2 results with slight growth in performance metrics; let us see what the operational highlights of the company are. 

This company, which is a subsidiary of Tenneco Inc., a global leader in designing and manufacturing clean air and powertrain products for automotive applications, had its shares in the limelight today after announcing its Q2 results. Let us see how the company has performed and what its future course of action is. 

With a market cap of Rs 19,772 crore, the shares of Tenneco Clean Air India Ltd gained 1.39 per cent, reaching a high of Rs 496.90 in today’s trading session when compared to its previous day’s closing price of Rs 490.10. The shares are trading at a PE of 35.9, whereas the industry PE is 31.3. 

Q2 FY26 Result highlights

The revenue from operations for the company stood at Rs 1,281 crore when compared to Rs 1,169 crore in Q2 FY25, growing by about 9.6 per cent on a YoY basis and on a QoQ basis falling by 0.4 per cent from Rs 1,286 crore in Q1 FY26.

The PAT grew by about 10 per cent on a YoY basis when you compare the Q2 FY26 profit at Rs 151 crore to Rs 137 crore in Q2 FY25 and on a QoQ basis has decreased   by 10% from Rs 168 crore in Q1 FY26. 

Tenneco India turned in a decent performance this quarter; its Value Added Revenue, a cleaner measure of real business growth because it removes raw-material pass-through costs, came in at Rs 1,151.5 crore for Q2 and Rs 2,318.1 crore for the half year, which is a 9% change YoY. This momentum was driven by better production volumes and steady demand from export markets.

The standout again was the company’s Advanced Ride Technologies (ART) division, which focuses on premium shock absorbers and suspension systems. As more automakers shift toward higher-end, smoother ride experiences, ART delivered impressive double-digit gains: Rs 581.3 crore in Q2 and Rs 1,143.4 crore in H1. Meanwhile, the Clean Air & Powertrain segment maintained stable growth at Rs 570.2 crore in Q2 and Rs 1,174.7 crore in H1, supported by consistent domestic volumes.

Management Remarks

Arvind Chandrasekharan, Whole-Time Director and CEO, Tenneco India, said: “Tenneco India has delivered a strong and strategically meaningful quarter. Our Q2 and H1 FY2026 VAR* performance clearly reflects above-market growth, supported by deeper engagement across customer programmes. During the quarter, we secured important new awards in both Clean Air and ART, including strategic entry into a new whitespace opportunity with a leading Japanese OEM in Clean Air and increased market share for a well-known Indian OEM in ART. These wins further strengthen our medium-term growth visibility and reinforce the progress of our localisation and technology strategy. He further added, “Industry tailwinds in regulation, premiumisation and exports continue to create attractive opportunities, and we are well positioned to capture them. Our expanding order pipeline, improving export traction and the disciplined execution mindset embedded in The Tenneco Way give us strong confidence in sustaining market outperformance and long-term value creation.” 

About the company and more 

Tenneco Clean Air India is the local arm of the US-based Tenneco Group and plays a quiet but important role in how modern vehicles perform on Indian roads. The company supplies automakers with key parts that keep cars cleaner, smoother, and more efficient—everything from catalytic converters and DPFs that reduce emissions to shock absorbers, struts, spark plugs, and suspension parts that improve ride quality and comfort.

BlackRock Global Fund and Goldman Sachs India Fund both hold 5% of the stake under the anchor investor portions at a price of Rs 397 per share. Well-known brands like Champion and Monroe also sit under its umbrella. With 12 manufacturing plants and two advanced R&D centres spread across major auto hubs, Tenneco India combines global technology with strong local engineering, making it a trusted partner for both Indian and international vehicle makers. 

Written by Leon Mendonca

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