Tenneco Clean Air India Limited, one of the most talked-about IPOs of 2025, delivered its first quarterly results after a blockbuster listing on 19th November 2025. Investors who grabbed shares during the IPO – which was oversubscribed a massive 58.83 times and delivered over 27% listing gains have been eagerly waiting for the company’s Q2 FY2026 performance. In this detailed analysis, we dive deep into Tenneco Clean Air’s July-September 2025 (Q2) consolidated financial results, compare them year-on-year and sequentially, and explore what these numbers mean for shareholders and the future outlook of this global leader in clean air and powertrain solutions.
Tenneco Clean Air India IPO Recap: From Stellar Subscription to Blockbuster Listing
Before jumping into the Q2 numbers, let’s quickly revisit why Tenneco Clean Air India became an investor favorite overnight.
The ₹3,600-crore IPO witnessed phenomenal demand across all investor categories:
- Qualified Institutional Buyers (QIBs): Over 120 times
- Non-Institutional Investors (NIIs): Nearly 90 times
- Retail Individual Investors (RIIs): Around 25 times
The issue was priced at the upper end of the price band, reflecting strong confidence. On listing day, shares debuted with a premium of more than 27%, instantly creating massive wealth for early applicants.
Incorporated in 2018, Tenneco Clean Air India is part of the global Tenneco group and specializes in designing and manufacturing advanced clean air systems, catalytic converters, exhaust systems, and powertrain components for automotive OEMs. With the global shift toward BS-VI and stricter emission norms, the company is perfectly positioned in a high-growth structural segment.
Tenneco Clean Air Q2 FY2026 Key Financial Highlights at a Glance
Here are the headline consolidated numbers for the quarter ended September 2025 (all figures in ₹ crore):
| Particulars | Q2 FY2026 | Q2 FY2025 | YoY Change | Q1 FY2026 | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue from Operations | 10,292 | 10,170 | +1.2% | 10,316 | -0.2% |
| Total Expenses | 10,100 | 9,920 | +1.8% | 10,090 | +0.1% |
| Profit Before Tax | 212 | 198 | +7.1% | 238 | -10.9% |
| Net Profit After Tax | 150 | 137 | +9.5% | 168 | -10.7% |
| Basic EPS (₹) | 3.73 | 3.39 | +10.0% | 4.16 | -10.3% |
Year-on-Year Performance: Healthy Growth Despite Macro Headwinds
Investors focusing on annual progression will be pleased. Tenneco Clean Air India posted solid YoY growth across key parameters:
- Revenue grew 1.2% from ₹10,170 crore to ₹10,292 crore
- Net profit jumped 9.5% from ₹137 crore to ₹150 crore
- Earnings Per Share (EPS) rose 10% from ₹3.39 to ₹3.73
This growth is particularly impressive given the ongoing global supply-chain challenges, semiconductor shortages, and rising raw material costs that continue to pressure the entire auto ancillary sector.
The company’s ability to expand margins while maintaining pricing power reflects strong operational efficiency and robust demand from OEM customers for its clean air technologies.
Sequential Performance: Minor Dip, But Nothing Alarming
On a quarter-on-quarter basis, revenue and profitability witnessed a slight decline:
- Revenue down 0.2% from ₹10,316 crore in Q1 FY2026
- Net profit declined ~10.7% from ₹168 crore to ₹150 crore
- EPS fell from ₹4.16 to ₹3.73
The sequential softness can largely be attributed to seasonal factors, temporary plant shutdowns for maintenance, and a marginal increase in input costs. Importantly, the drop is modest and well within normal quarterly fluctuations for capital-intensive auto component companies.
Half-Yearly Performance (H1 FY2026): Clear Growth Trajectory
When we zoom out to the first six months of FY2026, the picture becomes even more encouraging:
| Particulars | H1 FY2026 | H1 FY2025 | YoY Growth |
|---|---|---|---|
| Total Revenue | 20,608 | 20,486 | +0.6% |
| Net Profit | 318 | 287 | +10.8% |
| EPS (₹) | 7.89 | 7.11 | +11.0% |
A near 11% jump in half-yearly profit despite flat revenue growth highlights improving operating leverage and cost-control measures implemented by the management.
Why Tenneco Clean Air Remains a Top Auto Ancillary Pick in 2026
- Structural Tailwinds in Emission Control Systems With India moving toward even stricter emission norms (CAFE II, RDE, and potential BS-VII discussions), demand for advanced catalytic converters and exhaust after-treatment systems is set to explode.
- Strong Parent Backing & Technology Edge Being part of the global Tenneco-DRIV group gives the Indian entity access to cutting-edge R&D, patented technologies, and long-term contracts with major OEMs (Maruti Suzuki, Tata Motors, Mahindra, Hyundai, etc.).
- Expanding Export Contribution A significant portion of revenue comes from exports to North America, Europe, and ASEAN markets where electrification and hybrid technologies still require sophisticated clean air solutions.
- Healthy Balance Sheet Post-IPO The IPO proceeds have strengthened the balance sheet, reduced debt, and provided capital for capacity expansion projects scheduled for FY2026-27.
- Attractive Valuation Compared to Peers Even after the post-listing rally, Tenneco Clean Air trades at a reasonable P/E multiple compared to established players like Bosch India, Motherson, or Endurance Technologies, yet offers higher growth potential in the fast-growing emission control segment.
Management Commentary & Future Guidance
While the company did not host an earnings call for this quarter (common for newly listed entities), the exchange filing emphasized:
- Continued strong order book visibility from domestic and export customers
- Ongoing investments in R&D for BS-VI Phase II and ethanol-flex fuel compatible systems
- Confidence in achieving double-digit revenue growth for the full year FY2026
Analysts tracking the stock expect revenue CAGR of 15-18% and profit CAGR of 22-25% over FY2025-28, driven by volume ramp-up and operating leverage.
Tenneco Clean Air Share Price Outlook After Q2 Results
Post the Q2 announcement, the stock witnessed mild profit-booking as some traders were expecting even stronger sequential numbers. However, long-term investors used the dip as a buying opportunity, pushing the share price back toward its all-time high within days.
Technical analysts point out:
- Strong support zone around the IPO issue price + 20%
- Resistance near the psychological ₹1,800-1,850 level
- RSI cooling off from overbought territory – healthy for the next leg up
Most brokerage houses maintain “BUY” rating with target prices ranging between ₹1,950 and ₹2,300 in the next 12-18 months.
Final Verdict: Tenneco Clean Air India Q2 FY2026 Results Reflect Resilience and Growth Potential
Tenneco Clean Air India has delivered exactly what long-term shareholders wanted in its debut quarterly result after the IPO – consistent year-on-year growth, margin resilience, and clear visibility of multi-year tailwinds in the clean mobility ecosystem.
The minor sequential dip is negligible in the larger scheme and should not overshadow the robust fundamentals. For investors seeking exposure to India’s green automotive future, Tenneco Clean Air remains one of the top picks in the auto ancillary space going into 2026 and beyond.
Stay tuned for Q3 FY2026 results expected in late January 2026 – we expect an even stronger performance as new capacities come online and festive-season dispatches reflect in the numbers.
