Why Are BlackRock and Goldman Sachs Investing in Tenneco Clean Air India? Here Are the Reasons

Synopsis: BlackRock and Goldman Sachs invested Rs. 1,080 crore in this small‑cap auto component maker. what’s driving their confidence in Tenneco Clean Air India’s growth story? Lets dive into the company specifics.

This newly listed auto components maker, known for its leadership in clean air solutions and suspension systems, has quickly become a hotspot for global investors. In this article we will explore how its robust IPO response, strong order book and revenue made it a favorite of BlackRock and Goldman Sachs.

Tenneco Clean Air India Limited‘s stock, with a market capitalisation of 19,029, fell to Rs. 471, hitting a low of up to 0.84 percent from its previous closing price of Rs. 475. Furthermore, the stock since IPO has only given a negative returns of 0.91 percent.

BlackRock & Goldman sachs investment 

BlackRock Global Fund and Goldman Sachs India Fund each received 5% stake in the anchor investor category at a price of Rs. 397 per share. The company also owns reputed brands such as Champion and Monroe. Its November 2025 IPO garnered Rs. 1,080 crore from prominent anchors, including BlackRock and Goldman Sachs.

Why Institutions Are Piling In

Tenneco Clean Air India Ltd is a key subsidiary of the U.S.-based Tenneco Inc., a global Tier-1 supplier of automotive components. Incorporated in 2018, the company specializes in manufacturing highly engineered, technology-intensive products for clean air, powertrain, and suspension solutions.

Order Book: The company has secured an incremental lifetime order book of Rs. 9,840 crore, giving strong revenue visibility over the next several years. This includes an export portion of Rs. 1,760 crore, indicating growing international business and multi‑year program wins with global customers. The large order book is supported by significant new wins in Clean Air Systems with a leading Japanese passenger vehicle OEM in India and in ART with a well‑known Indian OEM, reinforcing its position as a key supplier in the passenger vehicle market.

This robust order pipeline is translating into healthy operating performance, with the company outperforming the market in both Q2 and H1 by 4%, and maintaining strong EBITDA and PAT margins of 18.8% & 19.2% alongside a high ROCE above 70%. The multi‑year nature of these orders, combined with disciplined capital efficiency and a solid fixed‑assets turnover, suggests that the current order book can sustain growth while supporting profitability and returns for the business.

Market Share: The company holds strong leadership positions across its key segments in the Indian OEM market. It is the number one player in clean air solutions for Indian commercial truck OEMs with a 57% market share, and also leads clean air solutions for off‑highway OEMs with a 68% share.​

In addition, the company is the top player in shock absorbers and struts for Indian passenger vehicle OEMs, commanding a 52% market share. These high shares across commercial vehicles, passenger vehicles, and off‑highway segments underline its dominant competitive position and deep relationships with OEM customers.​

Q2 FY26 Result Highlights

The company reported revenue of Rs. 1,281 crore in Q2FY26, up 9.6% year-on-year from Rs. 1,169 crore in Q2FY25, reflecting healthy business momentum. However, revenue remained nearly flat sequentially, declining marginally by 0.4% from Rs. 1,286 crore in Q1FY26, indicating stable quarterly performance.

Net profit stood at Rs. 151 crore in Q2FY26, rising 10.2% YoY from Rs. 137 crore in Q2FY25, supported by improved margins. On a QoQ basis, profit fell 10.1% from Rs. 168 crore in Q1FY26, largely due to higher costs or a less favorable product mix during the quarter.

The company’s Advanced Ride Technologies (ART) division once again emerged as the key performer, specializing in premium shock absorbers and suspension systems. With automakers increasingly prioritizing smoother, high-end driving experiences, ART recorded strong double-digit growth of 15% amounting to Rs. 581.3 crore in Q2 and 13.8% in H1 to Rs. 1,143.4 crore. In contrast, the Clean Air & Powertrain segment posted steady progress, registering Rs 570.2 crore in Q2 and Rs 1,174.7 crore in H1, driven by stable domestic demand.

Written By Fazal Ul Vahab C H

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