Bombay Burmah Trading Corporation's Credit Ratings Affirmed/Assigned 'AA-/Stable' by Crisil and India Ratings
Bombay Burmah Trading Corporation's credit ratings affirmed/assigned 'AA-/Stable' reflecting improved consolidated liquidity, significant debt reduction, and strong support from Britannia Industries. Standalone operations are a key monitorable.
The affirmation of credit ratings with a 'Stable' outlook, coupled with positive commentary on consolidated debt reduction and liquidity, is a positive signal for investors, reinforcing the company's creditworthiness and financial stability.
The affirmation of credit ratings with a 'Stable' outlook by both agencies, significant consolidated debt reduction, improved liquidity, and the expectation of becoming net cash positive by FYE27 indicate a strong financial position and positive future outlook for the company.
The Bombay Burmah Trading Corporation Limited (BBTCL) announced that Crisil Ratings Limited and India Ratings & Research have assigned/affirmed ratings to its facilities. The key ratings are: * Crisil Ratings Limited assigned Long Term Rating of Crisil AA-/Stable and Short Term Rating of Crisil A1+ to Bank Loan Facilities of ₹117 crore. * Crisil also assigned Crisil A1+ to Commercial Paper of ₹200 crore. * India Ratings & Research affirmed IND AA-/Stable/IND A1+ to Bank Loan Facilities of ₹117 crore (reduced from ₹142.50 crore). * India Ratings also affirmed IND A1+ to Commercial Paper of ₹150 crore (of which ₹30 crore is yet to be issued) and assigned IND A1+ to Proposed Commercial Paper of ₹50 crore.
The affirmation reflects a sustained improvement in BBTCL’s consolidated liquidity and credit profile in FY25, with expectations for it to remain healthy. The company has undertaken substantial debt reduction of over ₹4,000 crore (₹40,000 million) at the consolidated level, largely due to asset monetisation in 3QFY24. India Ratings expects BBTCL to turn net cash positive by FYE27 at the consolidated level. The company benefits from high financial flexibility and consistent dividend income from its strong subsidiary, Britannia Industries Limited (BIL), receiving ₹186.8 crore (₹1,868 million) in dividends from BIL in FY25.
At the standalone level, BBTCL's revenue grew by 5.3% year-on-year to ₹275.11 crore (₹2,751.11 million) in FY25. However, standalone operations continue to report EBITDA losses, primarily from the tea segment, which saw a negative EBITDA of ₹39.8 crore (₹398 million) in FY25. The management plans to improve standalone operational performance in FY26 by focusing on higher-profit segments and winding down loss-making tea operations. The company has fully provided for its exposure to Go Airlines, making an impairment of ₹1,970 crore (₹19,700 million) in FY23 and an additional ₹102.6 crore (₹1,026 million) in FY24. The SEBI matter against promoters and a group company is sub-judice. The company's liquidity is adequate, supported by dividends from subsidiaries, low working capital utilization, and substantial unencumbered liquid investments and bank deposits totaling approximately ₹1,651 crore (₹16.51 billion) as of September 2025.
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Bombay Burmah Trading Corporation Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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