Bharti Airtel has disclosed receiving a penalty notice from the Department of Telecommunications (DoT) for alleged violations of subscriber verification norms. The telecommunications major received the notice on December 16, 2025, at 13:27 hours IST, imposing a penalty of ₹2.09 lakh for non-compliance with regulatory requirements.

Penalty Details and Regulatory Background

The penalty was imposed by the Department of Telecommunications, Karnataka LSA (DoT), following their periodic Customer Application Form (CAF) audit. Under the terms of the 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.

Audit Findings and Violations

DoT conducted a sample CAF audit for October 2025 as part of its periodic compliance monitoring process. The audit revealed alleged violations of terms and conditions with respect to subscriber verification norms under the License Agreement. These verification requirements are fundamental licensing obligations that telecommunications operators must maintain to ensure proper customer onboarding processes.

The regulatory framework mandates that telecom companies implement robust subscriber verification mechanisms before activating services. This includes proper documentation, identity verification, and adherence to Know Your Customer (KYC) norms as prescribed by DoT guidelines.

Company Response and Financial Impact

Bharti Airtel has opted not to contest the penalty and will proceed with payment. The company has assessed that the maximum financial impact from this regulatory action is limited to the extent of the penalty levied, which amounts to ₹2.09 lakh.

Regulatory Compliance Framework

This penalty notice highlights the ongoing regulatory oversight in India's telecommunications sector. DoT regularly conducts CAF audits to ensure operators maintain compliance with licensing terms and conditions, particularly regarding subscriber verification processes. These audits serve as quality control mechanisms to protect consumer interests and maintain industry standards.

The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations, demonstrating the company's commitment to transparency in regulatory matters. Bharti Airtel has confirmed that the information provided is true, correct, and complete to the best of their knowledge and belief, as required under compliance obligations.

Morgan Stanley has upgraded Bharti Airtel to 'Overweight' rating, accompanied by a price target of ₹2,435.00 per share. This rating change signals the global investment bank's positive outlook on the telecommunications major.

Rating Upgrade Details

The upgrade to 'Overweight' indicates that Morgan Stanley expects Bharti Airtel to outperform relative to other stocks in their coverage universe. The accompanying price target of ₹2,435.00 represents the firm's assessment of the stock's fair value based on their analysis.

Investment Implications

The 'Overweight' rating typically suggests that institutional investors should consider increasing their allocation to the stock. Morgan Stanley's positive stance on Bharti Airtel reflects their assessment of the company's positioning within the competitive telecommunications landscape.

This rating upgrade comes as part of Morgan Stanley's ongoing coverage of the Indian telecommunications sector, where they evaluate companies based on various fundamental and technical factors.

The upgrade to 'Overweight' rating with a price target of ₹2,435.00 underscores Morgan Stanley's confidence in Bharti Airtel's future prospects and potential for growth in the telecom industry.