Tenneco's full-year margin hits 18.8% record as DaVinci suspension attracts new OEMs
EBITDA margin reached 18.8% of value-added revenue, up from 14.3% two years ago. DaVinci suspension and a new bearings business are driving the product mix shift.
— 2 earlier stories on Tenneco Clean Air India Ltd. →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 this 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.
Questions answered
- How much did Tenneco's full-year EBITDA margin improve?
- The full-year EBITDA margin reached 18.8% of value-added revenue, up from 14.3% two years earlier. This is an all-time high for the company.
- What new business did Tenneco win?
- The company secured a strategic entry into bearings systems with a Japanese passenger vehicle OEM. It is also doing a proof-of-concept for a Euro 7 compliant Clean Air solution with a European truck maker.
- How does the order book support future growth?
- The lifetime order book stands at ₹124,000 million, which management says provides full visibility for its FY28 revenue targets.
- What is the capacity expansion plan?
- Tenneco is building two greenfield plants—one in North India for Clean Air and one in West India for shock absorbers—with a combined capex of approximately ₹1,400 million. Both are expected to reach peak production by FY28-29.
Story so far
All notes on TENNIND →- 9 Jun 2026 · 9:18 PM IST Tenneco's full-year margin hits 18.8% record as DaVinci suspension attracts new OEMs
- 6d ago Tenneco's DaVinci suspension wins three more OEMs, order book covers FY28
- 10d ago Tenneco Clean Air India posts record 18.8% EBITDA margin in Q4