Tenneco Clean Air India Ltd (TENNIND) Q1 FY27 Results Analysis: Revenue Surges 20%, PAT Falls 2%

Tenneco Clean Air India Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,544.75 Cr (+20.16% YoY) and PAT growth of -1.66% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

TENNIND delivered strong revenue growth of 20.16% YoY, supported by robust auto market demand. However, margins compressed as material costs outpaced revenue, leading to a 1.66% decline in PAT. The company remains debt-free with strong subsidiary contribution, but near-term focus should be on margin recovery and the North India plant SOP in Q3 FY27.

Key Investment Insights

Key Positives

• Revenue from operations grew 20.16% YoY to Rs.1,544.75 Cr
• Subsidiary contribution to consolidated PAT was Rs.74.37 Cr, representing 45% of PAT
• Net debt position is negative 0.4x (debt-free)
• Effective tax rate decreased to 24.69% from 26.02% YoY
• Employee benefits expense declined 6.49% QoQ, indicating absorption of prior-period step-up

Risk Factors

• EBITDA margin compressed 182 bps YoY to 15.98% as material cost growth (24.10% YoY) outpaced revenue
• PAT to owners declined 1.66% YoY despite 20.16% revenue growth
• Other income collapsed 71.89% YoY (Rs.8.66 Cr vs Rs.30.81 Cr), significantly reducing total income growth
• Material costs as percentage of revenue rose from 64.42% to 66.54% YoY