Bombay Burmah Trading Corporation shares experienced their biggest single-day gain since January 22, 2025, surging as much as 15% to hit an intraday high of ₹1,635 on Thursday, August 27. According to The Hindu BusinessLine, the stock jumped nearly 15% to ₹1,639 on the NSE before trading at ₹1,616.40 from the previous close of ₹1,426.20. As per The Economic Times, the stock opened at ₹1,450 and touched an intraday high of ₹1,613.70, gaining from its previous close at ₹1,426.20. The latest surge represents the company's strongest performance in over a year, driven by favorable Supreme Court developments.
The company informed exchanges that it received a favorable judgement from the Supreme Court on Wednesday evening, allowing its interlocutory application and recalling the observation regarding a ₹4,655.24 crore lease rent liability. According to The Hindu BusinessLine, the Supreme Court issued its order dated August 19, 2026, allowing BBTCL's application seeking recall of the observation made in its May 29, 2026 order. The May order had recorded that lease rent of ₹4,655.24 crore remained to be recovered from BBTCL. As reported by The Economic Times, the Supreme Court noted that the ₹4,655.24 crore amount had neither been the subject of a notice served on BBTCL nor finally determined after giving the company an opportunity of hearing. The court accordingly recalled the observations in paragraph 59 of its May 29 order to the extent that they referred to BBTCL's lease rent liability.
The market response to the Supreme Court decision was accompanied by extraordinary trading activity, with trading volume jumping by 386.5 times to 83.53 lakh shares on the National Stock Exchange compared with an average volume of 21,614 shares. As many as 5.29 lakh shares changed hands on the BSE compared with an average of 2,258 shares traded daily in the past two weeks. The surge extended across multiple exchanges, with trading volume on the NSE jumping by 13 times to 5.46 crore shares compared with an average volume of 42 lakh shares. According to The Hindu BusinessLine, the stock jumped nearly 15% to ₹1,639 on the NSE before trading at ₹1,616.40 from the previous close of ₹1,426.20, demonstrating the market's strong positive reaction to the legal development.
The company filed an application before the Supreme Court seeking an order recalling and expunging para 59 of the May 29, 2026 order, stating that the civil appeals before the court did not concern lease rent and that no notice, demand or computation of the alleged liability had been served on it. According to The Hindu BusinessLine, BBTCL argued that it had not been allowed to respond to or contest the amount. The Supreme Court's August 19 order stated that it was of the view that the observations contained in paragraph 59 of the order dated 29th May, 2026 warrant recall, having regard to the fact that the amount of ₹4,655.24 crore had neither been the subject matter of a notice served upon the corporation nor been finally determined after affording the corporation an opportunity of hearing. The matter relates to ongoing judicial proceedings concerning the company's erstwhile tea estate in Singampatti, Tamil Nadu, under Civil Appeal Nos. 6395-6397 of 2025.
Despite the legal victory, BBTCL's recent financial performance shows mixed results. According to The Economic Times, the 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 property, plant and equipment at Nilgiris District Tamil Nadu and Marvera Estate, Tanzania. As reported by The Economic Times, 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. The company's August 26 exchange filing confirmed that the Supreme Court on August 19, 2026, allowed the Corporation's Interlocutory application and recalled the aforeside observations.
