What’s new

• Q4 value-added revenue rose 17.5% YoY to ₹14,058 million; EBITDA margin hit 18.3%.
• Full-year EBITDA margin reached 18.8% of VAR, up from 14.3% two years earlier.
• DaVinci DCx suspension now has three to four new OEMs interested after adoption by a top SUV maker.

Why it matters

The jump from 14.3% to 18.8% margin in two years shows new platforms are lifting the mix. The DaVinci suspension and a bearings-system contract with a Japanese OEM give the product cycle credibility beyond legacy Clean Air parts.

What we’re watching

• Conversion of DaVinci DCx interest from three to four OEMs into firm orders.
• Timeline for the two greenfield plants (₹1,400 million combined capex) to reach peak production by FY28-29.
• Ramp-up of the new bearings business with the Japanese OEM.

The full read

Tenneco Clean Air India's product mix is changing. The company's full-year EBITDA margin hit a record 18.8% of value-added revenue, a jump from 14.3% two years ago. The driver is new products: its DaVinci DCx mechanical suspension, already adopted by a leading SUV maker, is drawing interest from three to four additional OEMs. The company also landed a bearings-system contract with a Japanese passenger vehicle OEM. The lifetime order book of ₹124,000 million underwrites growth through FY28. Two greenfield plants with ₹1,400 million in combined capex are planned for North and West India to meet that demand. The margin story is about new platforms earning their keep.

Primary source: BSE · NSE

What’s new

• DaVinci DCX suspension system is expanding from one to three-four additional automakers.
• ₹1,400 crore capex planned for new factories in North and West India.
• Export ramp targets 14-20% of sales by FY28, supported by CAFE 3 and BS7.

Why it matters

The order book is not just large; it is booked for a future year. ₹124,000 crore in orders locks in FY28 revenue, de-risking the capex plan. The DaVinci win is the bigger story: a single technology platform is pulling in new customers.

What we’re watching

• How quickly DaVinci DCX ramps with the three-four new OEMs.
• Whether the ₹1,400 crore capex hits its factory-delivery timeline.
• Progress toward the 14-20% export-sales target by FY28.

The full read

Tenneco Clean Air India's FY26 results are a story of one technology pulling the rest of the business along. The DaVinci DCX mechanical suspension system, already in with a leading SUV maker, is now expanding to three-four more automakers. That single win helped drive a record 18.8% EBITDA margin for the year. Management is doubling down, with a ₹1,400 crore capex plan for new factories in North and West India to feed an export ramp targeting 14-20% of sales by FY28. The order book of ₹124,000 crore covers 100% of FY28 revenue targets, which funds the expansion without guesswork.

Primary source: BSE · NSE

What’s new

• Q4 profit after tax grew 19% compared to the same period last year.
• Value-added revenue increased 17.5% in Q4 and 12.3% for the full year.
• Order book coverage currently extends to FY28 revenue targets.

Why it matters

The firm’s ability to hit record margins suggests efficiency gains are holding as volumes climb. With revenue goals for FY28 already largely contracted, the focus shifts to whether this operational pace can be sustained through the next investment cycle.

What we’re watching

• Actual conversion of the current order book into realized cash flows.
• Impact of previously disclosed capacity expansions on upcoming margins.
• Quarterly updates on capital expenditure relative to the FY28 order backlog.

The full read

Tenneco Clean Air India closed its fiscal year with steady gains. Q4 value-added revenue climbed 17.5% year-on-year, and full-year revenue growth hit 12.3%. Profitability followed suit, with quarterly profit after tax rising 19%.

Then there is the margin performance. The company posted an 18.8% EBITDA margin, its highest level ever recorded. Management reports the current order book is sufficient to cover revenue targets through FY28. These figures reflect stable performance rather than a sudden shift in strategy. With capacity expansions currently underway and the order book providing a clear runway, the company is demonstrating consistent execution of its existing plans. The next test is maintaining these margins while scaling the business for a larger revenue base. Execution is everything.

Primary source: BSE · NSE