Supreme Court rejects Airtel’s entertainment tax plea, upholds Rs- 585 crore liability

Telecom giant Bharti Airtel announced that the Supreme Court has rejected the appeal filed by its subsidiary, Bharti Telemedia, in a case related to entertainment tax. The appeal challenged earlier rulings by several High Courts which had upheld the power of state governments to impose entertainment tax on Direct-to-Home (DTH) television services.

In its decision dated May 22, 2025, the Supreme Court dismissed all appeals filed by Bharti Telemedia Limited, effectively supporting the position taken by the High Courts on the matter.

In an official statement, Bharti Airtel noted that the financial implication of the judgment is estimated at Rs- 585 crore, a sum that has already been fully accounted for in the company's financial records. Out of the total amount, Rs- 575 crore has already been paid by Bharti Telemedia. The company also mentioned that it is currently analyzing the court's decision in detail and will decide on its next steps accordingly.

Despite the unfavorable ruling, Bharti Airtel's stock showed no significant movement in the market. At the close of trading on Friday, the company's shares remained steady at Rs- 1,831 apiece on the National Stock Exchange (NSE), suggesting limited investor concern over the ruling.

In a separate development, Bharti Airtel reported a remarkable increase in its financial performance for the quarter ending March 2025. The company posted a consolidated net profit of Rs- 11,022 crore, marking a nearly five-fold rise from the previous year. This impressive gain was largely driven by recent increases in tariffs as well as a one-time tax benefit, highlighting the telecom operator's strong financial footing despite ongoing legal and regulatory challenges.