Airtel faces telecom penalties in Andhra and Maharashtra

Airtel stated that the financial impact of the penalties will be limited to the fines levied, and the company plans to address the violations raised by the telecom departments following the notices received on February 19

Bharti Airtel has been hit with penalties totalling nearly Rs 8 lakh by the telecom departments of Maharashtra and Andhra Pradesh over alleged regulatory violations. The penalties were disclosed in an exchange filing by the company on February 20.

The Andhra Pradesh telecom department imposed a fine of Rs 6.59 lakh on Airtel for violating subscriber verification norms. The fine stems from a sample Customer Application Form (CAF) audit conducted by the Department of Telecommunications (DoT) for December 2024, which found discrepancies in the verification process as per the License Agreement terms.

Airtel also revealed that Maharashtra's telecom department imposed a separate fine of Rs 1.37 lakh for breaching electromagnetic field (EMF) self-certification norms. These norms are crucial to ensure that telecommunications equipment does not emit harmful levels of electromagnetic radiation.

Despite the two penalties, Airtel stated that the overall financial impact of the fines will be limited to the amounts levied by the authorities. The company received the penalty notices on February 19 and indicated its intention to address the violations raised by the telecom departments.

Airtel’s stake sale and strong Q3 performance

This development follows a significant market transaction by Airtel’s promoter group entity, Indian Continent Investment Limited (ICIL). ICIL sold a 0.84% stake, equating to 5.11 crore shares, in Bharti Airtel for Rs 8,485.11 crore. This sale follows Bharti Telecom’s acquisition of an additional 1.2% stake in Airtel in November 2024, bringing its total holdings to approximately 40.47%, reinforcing its role as the principal entity to control Airtel’s majority stake.

In other news, Airtel reported strong financial results for the third quarter (Q3) of the financial year 2024-25. The company’s net profit soared by 505%, reaching Rs 14,781 crore, up from Rs 2,442 crore in the same quarter last year. Revenue also saw a 19% rise to Rs 45,129 crore. The company’s average revenue per user (ARPU) increased to Rs 245 in Q3 FY25, compared to Rs 208 in the same period last year. Additionally, Airtel partnered with Bajaj Finance to provide digital financial services to its customers.