The Bombay Burmah Trading Corporation Ltd (BBTC) saw its shares climb by nearly 15% in early trade on Thursday, reaching a high of Rs 1,634.95. This significant surge followed a crucial decision by the Supreme Court of India, which recalled an earlier observation related to a substantial lease-rent liability.
Supreme Court Recalls Lease-Rent Observation
The Supreme Court, in its order dated August 19, 2026, allowed an interlocutory application filed by BBTC. This application sought the recall and expunging of an observation made in paragraph 59 of a previous May 29 order.
The contested observation in the May 29 order had stated that a lease rent of Rs 4,655.24 crore “remains to be recovered” by the Tamil Nadu government from BBTC. This amount was linked to the company's erstwhile tea estate in Singampatti, Tamil Nadu.
BBTC had challenged this observation, arguing that the civil appeals before the court did not pertain to the lease-rent issue. The company also highlighted that it had not received any notice, demand, or computation of the alleged amount and had not been afforded an opportunity to object or be heard on the liability.
Upon review, the Supreme Court concurred with BBTC's submissions. It noted that the Rs 4,655.24 crore amount had neither been the subject of a formal notice served on BBTC nor had it been finally determined after providing the company an opportunity of hearing. Consequently, the court ruled that the observation in paragraph 59 of its earlier order warranted recall and proceeded to expunge it.
BBTC affirmed its commitment to stakeholders, stating, "The Corporation will continue to take all necessary steps in the matter and will keep the stakeholders appropriately informed of any material developments."
Q1 Earnings Report
In a separate development that also contributed to market sentiment, BBTC reported a healthy financial performance for the June quarter. The company's consolidated net profit increased by 19.72% year-on-year (YoY).
Profit for Q1 FY27 stood at Rs 288.16 crore, a notable rise from Rs 240.70 crore recorded in the corresponding quarter of the previous fiscal year. Furthermore, revenue from operations for the quarter grew by 7.99% YoY, reaching Rs 5,088.69 crore, up from Rs 4,711.91 crore in the year-ago period.