Tenneco Clean Air sees double-digit growth till FY28 with export demand rising

Tenneco Clean Air India has already secured full revenue visibility through 2027-28 (FY28), giving the company a clear growth runway, according to CEO Arvind Chandra, even as exports and profitability improve.Speaking about the strength of the order pipeline, Chandra said, “Our 2028 revenues have already been booked to 100% level, which gives us a very clear sight of a nice double-digit compound annual growth rate (CAGR) revenue growth.” He indicated that the strong order book positions the auto component maker to outperform the broader market in the coming years.

A major driver of growth is expected to be exports, which are set to rise following recent international trade agreements. Historically, overseas sales formed a small portion of the business. Chandra stated, “Our exports have been historically… 5% of sales.” However, the trend is already changing, with the company seeing higher overseas demand. “Our order book right now is coming in at 20% of the total order book, which is fantastic news,” he said.
He added that tariff reductions and India’s manufacturing cost advantage should further strengthen competitiveness. “This new Indo-US trade deal… is going to make us more and more competitive.” India is also becoming an important manufacturing and supply base within the global group. “It’s also Tenneco India exporting back to Tenneco Europe, Tenneco US… many OEM customers are demanding that India become the export hub,” Chandra said.Also Read: AI priced into IT, gradual impact on finance; gold and autos in focus: Axis MF
The company expects margins to remain healthy as volumes grow and internal efficiency initiatives continue. “We believe that our EBITDAs will not only be sustainable, but they will also grow,” Chandra said, pointing to operating leverage and cost discipline.Following its recent listing, the company is also preparing for acquisitions. The focus will be on specialised segments while avoiding dependence on a single automotive technology. Chandra said the company is targeting “niche areas… powertrain agnostic,” including commercial trucks, off-highway and industrial applications, adding, “We’re not going to accept anything that will dilute our margin.”

In the October-December quarter of 2025 (Q3FY26), Tenneco Clean Air India reported mixed but improving operational performance. Profit fell 5% year-on-year to ₹119 crore from ₹125 crore, while total revenue rose 14% to ₹1,285 crore. Value-added revenue increased 15% to ₹1,194 crore. The earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 25% to ₹222 crore from ₹178 crore and margins expanded to 17.3% from 15.8%.

The company debuted on Dalal Street on November 19, 2025 and currently has a market capitalisation of about ₹22,252.72 crore. Its shares have gained close to 7% over the past month.