Bombay Burmah Trading Corporation shares post best day in over a year; here is why

Shares of Bombay Burmah Trading Corporation, the country's leading tea producer, rose as much as 15%, posting their biggest single-day gain since January 22, 2025, to hit an intraday high of ₹1,635 on the National Stock Exchange on Thursday, August 27.

The stock came under buying interest after it informed exchanges that it received a favourable judgement from the Supreme Court.

Bombay Burmah Trading Corporation post market hours on Wednesday said that Supreme Court allowed its interlocutory application and recalled the observation made on May 29, 2026, which said that lease rent of ₹4,655 crore remained to be recovered by the state government from the company.

The company filed an application before the Supreme Court seeking an order recalling and expunging para 59 of the May 29, 2026 order, since the Civil Appeals did not pertain to the issue of lease rent and further since no notice or, demand or computation of lease rent recorded has been issued to or served on the Corporation, Bombay Burmah Trading Corporation said.

"Having considered the submissions advanced by learned senior counsel appearing for BBTCL and learned Amicus Curiae and having regard to the fact that the amount of ₹4,655.24 crore had neither been the subject matter of a notice served upon BBTCL nor been finally determined after affording BBTCL an opportunity of hearing, we are of the view that the observations contained in paragraph 59 of the order dated 29th May, 2026 warrant recall," Supreme Court said in its August 25 order.

"Accordingly, observations made in paragraph 59 of the order dated 29th May, 2026 to the extent, the same refer to the lease rent liability of BBTCL, are recalled,” the order added.

The legal matter relates to the ongoing judicial proceedings concerning the Corporation’s erstwhile tea estate in Singampatti, Tamil Nadu.

Bombay Burmah Trading Company's net profit in June quarter came in at ₹7.86 crore, down 76% from ₹33 crore in the same period last year. The profit came on account of an exceptional gain of ₹14.87 crore arising from sale of f property, plant and equipment at Nilgiris District Tamil Nadu and Marvera Estate, Tanzania.

Its net sales declined 6% annually to ₹66.59 crore in the first quarter and operating loss narrowed to ₹3.35 crore from ₹3.94 crore a year earlier.

As of 11:12 am, Bombay Burmah Trading Company shares traded 14% higher at ₹1,625, outperforming the NIFTY500 index which was down 0.2%.