Automotive component manufacturer Tenneco Clean Air India has announced its financial results for the Q4 and FY2026. The company, which supplies emission controls, powertrains and suspension systems to original equipment manufacturers (OEMs), reported a value-added revenue (VAR) increase of 17.5 percent YoY for Q4 and 12.3 percent for the full fiscal year.

The company said it utilises value-added revenue as its primary performance metric to exclude pass-through substrate costs from its operations.

For Q4, value-added revenue reached INR 14,058 million, up from INR 11,963 million in the corresponding quarter of the previous fiscal year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter stood at INR 2,573 million, representing an 18.3 percent margin on value-added revenue. Profit after tax (PAT) for Q4 grew 19 percent YoY to INR 1,668 million, yielding an 11.9 percent margin.

For FY2026, total value-added revenue rose to INR 54,040 million compared to INR 48,904 million in FY2025. Full-year EBITDA reached INR 9,255 million, establishing a margin profile of 18.8 percent. Annual profit after tax concluded at INR 6,044 million, equivalent to a 12.3 percent margin, while return on capital employed (ROCE) increased to 94 percent from 57 percent in the prior fiscal year.

The company's revenue streams are divided across two core business segments:

• Clean Air & Powertrain Solutions: Generated INR 6,905 million in Q4 FY2026 and INR 49,180 million for the full fiscal year.
• Advanced Ride Technologies (ART): Generated INR 7,153 million in Q4 FY2026 and INR 24,885 million for the full fiscal year.

The total cumulative lifetime order book, excluding programs already in active commercial production, reached INR 124,000 million as of 31 March 2026. This order volume encompasses the revenue targets set by management for the fiscal year 2028.

During the fiscal year, Tenneco India secured several development contracts across its operating divisions, including the selection of its advanced suspension system for a vehicle platform by an Indian SUV manufacturer.

Additional contracts were signed with a Japanese passenger vehicle manufacturer for emission systems, a European commercial vehicle manufacturer for aftertreatment solutions and an Indian commercial vehicle manufacturer for an engine platform. The company also executed a technology proof-of-concept for a Euro VII emission control layout with a European truck manufacturer and secured a contract for bearing systems with a Japanese passenger car OEM.

To accommodate current order volumes, the company has approved a total capital expenditure allocation of INR 1,400 million. The investment framework funds the construction of two production sites: a greenfield manufacturing plant for Clean Air Systems located in North India, alongside a greenfield facility for Advanced Ride Technologies located in West India.

Arvind Chandra, Whole-Time Director and CEO, Tenneco India, said, “Over the past few years, the team has worked diligently to build a resilient, diversified and execution led business model. This was clearly demonstrated during the quarter and the year under review. Despite geopolitical headwinds since the end of February 2026 and the incremental overheads associated with becoming a listed entity, the team delivered a FY2026 double-digit topline growth at 12 percent and, more importantly, a strong operating performance with the highest-ever EBITDA margin at 18.8 percent. Supported by a strong and expanding order book, we continue to proactively scale our manufacturing capabilities to meet rising customer demand. In addition to the recently announced expansion in Northern India of INR 710 million, we plan to expand our manufacturing presence in Western India with an investment of INR 690 million, leading to a total of INR 1,400 million. These strategic capacity additions position us well to capture incremental growth opportunities, strengthen customer partnerships and support long term value creation. We recently completed a strategic Proof of Concept with a leading European Truck OEM for a Euro VII–compliant Clean Air solution, thereby strengthening capabilities in advanced emission technologies and readiness for future legislations. Also, we were honoured with the Zero-Defect Supplier Award by Toyota in the ART business, underscoring our commitment to operational excellence. In addition, we secured a strategic entry into the engine bearings business at a leading Japanese OEM, due to superior product technology, better quality and longstanding business relationship across other product verticals. Our H2 FY2026 order book addition stands at INR 60,254 million. Combined with the previously announced H1 order book, net of orders currently under production, the incremental lifetime order book reached INR 124,000 million as of March 31, 2026. This robust order book provides strong revenue visibility covering more than 100 percent of FY28 target revenues underpinning a healthy double-digit CAGR trajectory.”

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Delhi NCR-based fluid transmission provider Imperial Auto has appointed Sandeep Bathla as its new Chief Global Operations Officer.

In his new role, Bathla will oversee manufacturing operations and direct programs to update automation, expand production capabilities and streamline supply-chain networks across company facilities. He will report to Vikram Wagh, Managing Director and Chief Executive Officer, Imperial Auto.

Bathla brings over three decades of industry experience to the role and previously served as Executive Director and Chief Operating Officer at Plasser India, following management roles at Blue Star, Motherson Sintermetal Technology and Eicher Tractors. He holds a Bachelor of Engineering in Mechanical Engineering from NIT Kurukshetra and a PhD from European International University, Paris.

Vikram Wagh said, “As Imperial Auto continues to scale its operations and strengthen its position in global markets, building a future-ready and high-performing manufacturing organisation will be critical. Sandeep brings extensive experience across manufacturing and the automotive industry, along with a strong understanding of operational excellence. His leadership will be instrumental in enhancing our manufacturing capabilities, improving responsiveness and creating greater value for our customers.”

The executive change aligns with Imperial Auto's plans to expand its international manufacturing footprint and engineering capabilities.

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Tier 1 automotive supplier Lumax Auto Technologies, part of the DK Jain Group, has further strengthened its management team by onboarding Ambarish Kumar Gupta as the new Vice-President – Operations.

Gupta comes with over two decades of experience in the automotive industry, with senior roles across financial operations.

The industry executive has worked with the likes of Forvia Faurecia, Marelli, Brose, Magna Steyr, Infosys, L&T Technology Services, BlueBinaries Engineering & Solutions and PGUB Management Consulting, among others.

In his new role, he will be responsible for advancing futuristic automotive electronics, strengthening operations and making the company future-ready.

Gupta will also support Lumax Auto Technologies’ innovation, technology and operational excellence roadmap.

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The Indian automotive component sector is projected to expand by approximately 8-9 percent in FY2027, according to a report by CareEdge Ratings. The market size is forecasted to reach INR 10,681 billion in FY2027, rising from INR 9,835 billion in FY2026.

The anticipated expansion is supported by domestic vehicle manufacturing, higher component content per vehicle, aftermarket replacement demand and ongoing integration with international supply chains.

The report states that total vehicle production in India increased from 23 million units in FY2022 to 34.7 million units in FY2026. Original equipment manufacturers (OEMs) generated 67 percent of sector revenues in FY2026, while exports and the aftermarket accounted for 22 percent and 11 percent, respectively.

On the other hand, auto component exports grew from INR 987 billion in FY2021 to INR 2,122 billion in FY2026, with expectations to reach INR 2,300 billion in FY2027. Component imports increased from INR 1,024 billion in FY2021 to INR 2,243 billion in FY2026, and are projected to rise to INR 2,431 billion in FY2027 due to continued reliance on semiconductors, battery cells and electronic systems.

Engine parts represented the largest product category at 24 percent of the component mix in FY2026, followed by suspension and braking at 17 percent and drive transmission and steering at 14 percent. However, product value is gradually shifting toward electronics, software systems and electric vehicle architectures. Total electric vehicle registrations rose from 170,000 in FY2020 to 2.45 million in FY2026, increasing electric vehicle penetration from 0.71 percent to 8.28 percent.

Ranjan Sharma, Senior Director at CareEdge Ratings, said, "India's auto component industry has emerged as an increasingly important part of the global automotive supply chain, supported by its manufacturing competitiveness, engineering capabilities, and expanding domestic market. With the auto ancillary industry market size expected to surpass Rs 10.6 trillion in FY27, the sector is well positioned to capture a larger share of global sourcing opportunities. Continued progress in localisation of critical components and development of advanced manufacturing capabilities will be key to enhancing value addition and strengthening India's long-term position in the global automotive ecosystem."

The aggregate revenue of the top 50 listed auto ancillary companies in India is expected to increase from INR 4,325 billion in FY2026 to INR 4,714 billion in FY2027. Sector capital expenditure is projected to reach INR 282 billion in FY2027 to support automation, capacity expansion and technology upgrades. Operating margins are expected to remain stable, managed through contractual cost pass-through mechanisms with vehicle manufacturers.

Government policy initiatives continue to influence capacity creation. The PLI-Auto Scheme recorded cumulative investments of INR 443.26 billion against an incentive outlay of INR 259.38 billion by FY2026. The PLI-ACC scheme for battery cell manufacturing attracted INR 51.80 billion in investments as of 31 May 2026, against an outlay of INR 181 billion. Additional demand support stems from the PM E-DRIVE scheme and the PM e-Bus Sewa scheme.

Geopolitical issues, freight rate fluctuations, and trade policies remain factors for export performance. The US represents the largest export destination, taking approximately 26 percent of Indian auto component exports, valued at INR 552 billion in FY2026.

Arti Roy, Associate Director at CareEdge Ratings, added, "CareEdge Ratings expects the Indian auto ancillary industry to grow by around 8-9% in FY27, supported by healthy OEM demand across major segments, increasing component content per vehicle, resilient replacement demand, higher localisation, and expanding global sourcing opportunities. The industry's ongoing transition towards electronics-intensive and cleaner mobility platforms is creating new opportunities across EV-linked components, advanced electronics, powertrain technologies, and other high-value automotive systems. Profitability is expected to remain broadly stable, although returns from ongoing investments in new capacities and advanced technologies are likely to materialise gradually. Companies with diversified customer relationships and geographical reach, wider product portfolios, strong engineering capabilities, prudent capital allocation, and the ability to adapt to the evolving component value pool are expected to remain better positioned."

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BorgWarner has broadened its variable cam timing portfolio through two newly secured contracts in Europe and China, reinforcing its position in the hybrid and internal combustion engine sectors. One agreement extends production and raises output volumes for a premium European automaker’s V6 platform, while the other represents a competitive replacement for a Chinese original equipment manufacturer’s 1.5-litre turbocharged gasoline unit.

The technical foundation for both awards is the centre-bolt Cam Torque Actuated system, which departs from conventional oil-pressure-based designs. By streamlining internal lubrication channels, the architecture achieves quicker cam phase adjustment, more dependable locking mechanism engagement and lower lubricant consumption, all of which contribute to measurable gains in thermal efficiency across both electrified and conventional powertrains.

Production for the European V6 family, which serves premium and sports vehicle segments with power ratings spanning 260 to 375 kilowatts, is already active. The enhanced supply agreement, including the enlarged volume commitment and an extended production horizon, will become effective in January 2027, covering both hybrid and gasoline-only iterations of the engine.

The Chinese programme, slated to enter production in September 2026, involves a high-volume 1.5-liter turbocharged engine line that underpins numerous sport-utility and sedan models destined for the domestic market. This victory over the prior supplier was attributed to the system’s fuel-saving characteristics, combined with localised manufacturing operations and a more competitive overall cost structure.

Henk Vanthournout, Vice President of BorgWarner Inc. and President and General Manager, Drivetrain and Morse Systems, said, “These awards underline the long-term competitiveness of our VCT portfolio across both hybrid and combustion powertrains. They reflect the quality, reliability and cost competitiveness our customers continue to value in our VCT and timing drive solutions.”

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