Davinci DCX annual revenue potential
INR 2,200M
New win
First-in-world advanced suspension adopted by leading Indian OEM for flagship SUV platform.
TENNECOCLEANAIRINDIA
Other
10 Feb 2026
Tenneco Clean Air India Ltd — Q3 FY26
Tenneco Clean Air India delivered a strong Q3 FY26 with value-added revenue growth of 14.7% YoY and EBITDA growth of 24.8% YoY, driven by robust execution, favorable mix, and operating leverage.
✓ Verified against BSE filing
2-Min Summary
Tenneco Clean Air India delivered a strong Q3 FY26 with value-added revenue growth of 14.7% YoY and EBITDA growth of 24.8% YoY, driven by robust execution, favorable mix, and operating leverage. EBITDA margin stood at 18.6% of value-added revenue. PAT of INR 1,188 million included a one-time labor code charge of INR 203 million; adjusted PAT was INR 1,391 million. The highlight was the adoption of the patented Davinci DCX suspension by a leading Indian OEM for a flagship SUV, with annual revenue potential of INR 2,200 million. The order book provides 100% revenue coverage through FY2028, supporting double-digit CAGR. A new greenfield plant in North India (INR 710 million capex) was approved. Risks include potential regulatory pushbacks on emission norms and competitive intensity from global peers.
Key Numbers
Clean air program win annual revenue potential
INR 1,150M
New win
Modular inline BS6 after-treatment system for a leading global CV OEM.
Order book export share
20%
+15pp vs FY25 sales
Exports now 20% of total order book, up from 5% of sales in FY25.
Capacity utilization
>90%
+10pp vs earlier 80%
Operating above 90% capacity, driving need for new greenfield plant.
Management Guidance
Double-digit CAGR revenue growth over next 3 years
Order book provides 100% revenue coverage through FY2028, supporting double-digit CAGR, outperforming the market.
growthNew greenfield plant in North India with INR 710M capex
Board approved greenfield plant in Koda Hana to support clean air growth; estimated start of production in Q3 FY27.
capexDavinci DCX adoption by multiple OEMs beyond Mahindra
Management indicated strong interest from Indian, Japanese, and Korean OEMs for the DCX suspension technology.
growthKey Risks
Potential pushback on emission norms (CAFE, TFI, BS7)
Media reports suggest possible concessions or delays in CAFE norms and TFI implementation, which could impact clean air segment growth.
medium · analyst_questionCompetitive intensity from global peers post EU-India FTA
EU-India FTA could allow global competitors easier access to Indian market, increasing competition.
medium · analyst_questionOne-time labor code impact on PAT
A one-time charge of INR 203 million due to new labor code reduced reported PAT; such regulatory changes could recur.
low · management_commentaryNotable Quotes
This win demonstrates our ability to translate mechanical innovation to scalable customer relevant solutions.
The demand is fast and furious. Everybody recognizes that this is a gamechanger.
Our order book provides 100% revenue coverage through FY2028 and supports a clear double-digit CAGR visibility over the next 3 years.