Operating margin slips as costs outpace revenue at Tenneco Clean Air India
Q1FY27 revenue fell 0.50% sequentially while expenses rose 0.21%; a lower tax rate limited the net-profit decline.
Filed 05 Aug 2026, 21:21 IST · after market close · Tenneco Clean Air India Ltd (TENNIND)
Key takeaways
- Consolidated net profit slipped 0.92% QoQ as a 3.20-percentage-point tax-rate reduction cushioned weaker operating performance.
- Operating margin narrowed 0.59 percentage points to 15.98% because expenses grew +0.21% while revenue fell -0.50%.
- The margin remained 2.65 percentage points above the 13.33% median for 91 Consumer Discretionary peers that had reported.
Price around the results
Revenue softened, while operating profit fell faster
Consolidated revenue declined 0.50% sequentially, but expenses rose 0.21%, leaving operating profit down 4.05%. Profit before tax fell 5.14% as operating profit weakened and other income declined 24.04%. Net profit fell only 0.92%, helped by the lower tax rate.
Cost growth drove the margin contraction
Expenses grew faster than revenue, so operating margin narrowed 0.59 percentage points to 15.98%. The tax rate fell by 3.20 percentage points to 24.69%, cushioning the impact on net profit. Other income contributed 3.95% of pre-tax profit, so it was not the main driver of earnings.
Margin has declined for two straight quarters
Operating margin fell from 17.31% in Q3FY26 to 16.57% in Q4FY26 and 15.98% in Q1FY27. Despite that sequential direction, the company remained 2.65 percentage points above the 13.33% median margin among 91 reported Consumer Discretionary peers.
Filed after close; prior result reactions were negative
The consolidated results were filed after market close on 05 Aug 2026, so no post-results price reaction is assessed here. After the last three results, the stock fell each time, with moves of -5.30%, -2.23% and -0.01%; the median absolute move was 2.23%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹1,545 cr | ₹1,552 cr | -0.50% |
| Other income | ₹9 cr | ₹11 cr | -24.04% |
| Expenses | ₹1,298 cr | ₹1,295 cr | +0.21% |
| Operating profit | ₹247 cr | ₹257 cr | -4.05% |
| Operating margin (%) | 15.98% | 16.57% | — |
| Interest | ₹8 cr | ₹9 cr | -4.34% |
| Depreciation | ₹28 cr | ₹29 cr | -3.14% |
| Profit before tax | ₹219 cr | ₹231 cr | -5.14% |
| Tax | ₹54 cr | ₹64 cr | -16.02% |
| Net profit | ₹165 cr | ₹167 cr | -0.92% |
| EPS (₹) | ₹4.09 | ₹4.13 | -0.97% |
Operating margin of 15.98% compares with a Consumer Discretionary sector median of 13.33% across 91 peers that have reported Q1FY27.
What to watch
- Whether operating margin stops its slide from 17.31% in Q3FY26 to 15.98% in Q1FY27.
- Whether expense growth moves below +0.21% as revenue recovers from -0.50% sequentially.
- Whether the tax rate remains near 24.69% after falling 3.20 percentage points QoQ.