Tenneco Clean Air up 4%; JM Fin sees 19% upside, bets on strong order book

JM Financial has reiterated its 'Buy' rating on Tenneco Clean Air India, saying a strong order book gives earnings visibility. The brokerage maintained its target price of ₹680 per share.

Tenneco Clean Air India shares defied the market weakness and rose as much as 4 per cent in early trade on Thursday after the company reported strong numbers for the March 2026 quarter (Q4FY26).

 

The stock opened at ₹570 on the National Stock Exchange (NSE) and climbed to an intraday high of ₹595.

 

As of 9:45 AM, Tenneco Clean Air India shares were trading 3.6 per cent higher at ₹590.50, significantly outperforming the markets. In comparison, the Nifty 50 was down 0.15 per cent.

 

Tenneco Clean Air India, part of the US-headquartered Tenneco Group, had made its Dalal Street debut in November 2025. The company has reported a nearly 19 per cent Y-o-Y rise in Q4 PAT to ₹166.8 crore. The company had earned a profit of ₹140.3 crore in Q4 of the previous fiscal year. 

 

 

Its revenue from operations grew by 17.1 per cent to ₹1,552 crore in Q4FY26 from ₹1,325 crore in Q4FY25. 

 

Its consolidated value-added revenue (VAR) was at ₹1,406 crore for the March quarter, up 17.5 per cent Y-o-Y.

 

Ebitda in the reporting quarter increased by 17.6 per cent Y-o-Y to ₹257.3 crore from ₹218.9 crore in the corresponding quarter of FY25. 

 

As of March 31, 2026, the company's order book stood at ₹12,400 crore.

 

For the entire fiscal year FY26, the company reported a PAT of ₹604 crore, up by 9.3 per cent from ₹553 crore reported in FY25. Its revenue came in 10.5 per cent at ₹5,404 crore versus ₹4,890 crore in the preceding fiscal. 

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Post quarterly results, brokerage firm JM Financial has reiterated its 'Buy' rating on the stock, saying a strong order book gives earnings visibility. The brokerage maintained its target price of ₹680 per share, implying an upside of nearly 19 per cent from the previous close of ₹570.25. 

 

According to JM Financial, Tenneco ended FY26 with a diversified order book, with exports contributing around 14??'20 per cent. The order backlog provides visibility for healthy double-digit growth, supported by resilient demand, tightening emission norms and rising exports. 

 

Furthermore, capacity expansion in Western India for the ART segment with capex of ₹690 million and Kharkhoda (announced in Q3FY26 with capex of ₹710 million) enhances medium-term scalability. 

 

JM Financial expects Tenneco's VAR to grow 16 per cent in FY27 and 22 per cent in FY28. While raw material inflation could exert some pressure on margins in the near term, the brokerage expects commercial actions, cost efficiencies and operating leverage to support profitability over the medium term. 

 

"Premiumisation trends, improved realisations from the ongoing CV cycle and higher exports shall provide incremental growth and margin support. However, RM pressures are expected to impact margins in the near term," the brokerage said, adding that it expects Ebitda margins of 18.5 per cent in FY27 compared with 18.8 per cent in FY26.   ================================ 

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