Bharti Airtel Limited has disclosed receiving a penalty notice from the Department of Telecommunications (DoT) Kerala LSA for alleged violations of subscriber verification norms. The telecommunications major received the notice on December 23, 2025, at 19:03 hours IST, imposing a penalty of ₹1.16 lakh.

Regulatory Action Details

The penalty stems from DoT's periodic Customer Application Form (CAF) audit conducted for October 2025. The regulatory authority alleged that Bharti Airtel violated terms and conditions related to subscriber verification norms under the license agreement.

Background and Compliance Requirements

Under the terms of its license agreement, Bharti Airtel is required to ensure adequate verification of customers before enrolling them as subscribers and comply with instructions issued by DoT in this regard. The Department of Telecommunications conducts periodic Customer Application Form audits to confirm compliance with licensing terms and conditions.

Company's Response and Financial Impact

Bharti Airtel has stated that it does not agree with the order and plans to take appropriate action for rectification or reversal of the penalty. The company has indicated that the maximum financial impact of the order is limited to the extent of the penalty levied, which amounts to ₹1.16 lakh.

The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding regulatory actions affecting the company.

Avendus Securities has issued a downgrade for Bharti Airtel , changing its rating to Reduce with a target price of ₹1,700 per share. This revision in the brokerage's stance reflects a more cautious outlook on the telecom major's performance prospects, indicating potential downside from current levels.

Brokerage Recommendation Details

The key parameters of Avendus Securities' updated recommendation are outlined below:

Market Implications

The Reduce rating typically indicates that the brokerage expects the stock to underperform relative to the broader market or sector peers. With the target price set at ₹1,700, Avendus Securities appears to anticipate limited upside potential or possible downside for Bharti Airtel shares in the near term.

This downgrade comes as part of Avendus Securities' ongoing coverage and analysis of the telecommunications sector. The brokerage's revised stance suggests a shift in their assessment of the company's fundamental outlook and market positioning.

Investment Perspective

The Reduce rating serves as a cautionary signal for investors considering positions in Bharti Airtel. Brokerage recommendations like this are typically based on various factors including financial performance, competitive dynamics, regulatory environment, and market conditions, though specific reasoning behind this particular downgrade was not detailed in the available information.