Auto Ancillary Stock With Strong Guidance for Order Book Growth and Double-Digit CAGR

Synopsis: Leading Auto Ancillary stock that offers powertrain solutions, cleanair solutions and more in focus after successfully securing 100% of FY28 revenue through orders, a new Haryana plant, and targeting double-digit growth driven by exports, advanced tech.

The shares of this company, which are among the global leaders in designing and manufacturing clean air and powertrain products for automotive applications are in the spotlight after the overall order book already covers 100 percent of FY 2028 revenue and is seeing double-digit CAGR growth over the next three years.

With a market capitalisation of Rs. 22,338 cr, the shares of Tenneco Clean Air India Ltd closed at Rs. 554.50 per share, up from its previous close of Rs. 549.70 per share. The stock has gained 13% over the past year, 10% year-to-date, and 8% in the past month.

Q3 performance 

For Q3FY26, sales grew 14 percent YoY to Rs. 1,285 cr from Rs. 1,125 cr, while EBITDA rose 25 percent to Rs. 223 cr. Net profit decreased 5 percent to Rs. 119 cr from Rs. 125 cr, and EPS declined 50 percent YoY to Rs. 2.94 from Rs. 5.85. The fall in profits was due to one time impact of the new labour code relating to Rs. 27 Crores.

Tenneco reported robust business execution this quarter, showing strong growth, resilient margins, and progress across its Clean Air, Powertrain, and Advanced Ride Technologies segments. The company emphasises not just building automotive components but enhancing consumer experiences through innovative engineering. 

Followingly, Arvind Chandra, the Whole Time Director and CEO of Tenneco Clean Air India Limited, throwed linelight on ongoing developments and outlook for the company.

Advanced Suspension Technology

The DaVinci DCx suspension system has been selected for a flagship SUV platform by a leading Indian OEM, reflecting Tenneco’s capability to deliver superior ride comfort. 

Unlike conventional suspensions, the system uses specially designed shim stacks to control hydraulic flow, providing consistent comfort across different speeds and road conditions. This technology is tailored for Indian road conditions, offered affordably, and developed with a fast time-to-market approach.

Clean Air Segment Growth

Tenneco secured a strategic Clean Air program with a leading commercial truck OEM, demonstrating its ability to translate customer requirements into high-speed execution. This was supported by resident engineering teams and a disciplined first-time-right validation approach.

Expansion in Northern India

To support its Clean Air growth, the board approved a greenfield plant in Kharkhoda, Haryana. The new facility will enhance proximity to northern customers and support programs across light vehicles, off-highway, and tractor segments. The project involves a capex of Rs. 71 cr, with production expected to start in Q3 FY27, boosting Tenneco’s operational footprint and responsiveness.

Future Outlook

Tenneco’s export business remains very strong, with a higher contribution to revenues than domestic sales, supporting better margins. Recent US and EU tariff reductions are expected to accelerate export growth. The company’s current order book already covers 100% of FY28 revenue, setting the stage for double-digit CAGR growth over the next three years. Exports are historically just 5% of sales, but now make up more than 20% of the order book, signalling strong international demand.

Company Overview & Revenue Mix 

Tenneco Clean Air India, with over 45 years of operations is a market leader in clean air solutions for commercial trucks (57% market share), off-highway vehicles (68%), and shock absorbers for passenger vehicles (52%). The company serves 119 customers across 20 countries, operates 12 manufacturing facilities and 2 R&D centres, and employs over 1,950 people.

For the first nine months of FY2026, Tenneco Clean Air India reported a balanced segment-wise split with 50 percent of revenue from Clean Air & Powertrain and 50 percent from Advanced Ride Technology. 

By end market, passenger vehicles contributed 66.4 percent, commercial vehicles 20.4 percent, industrial & other 6.5 percent, aftermarket 4.8 percent, and others 1.8 percent. The company remains largely domestic, with 93.1 percent of revenue from India and 6.4 percent from exports, while other operating revenue made up 0.5 percent.

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