ITC

ITC Limited

HARAM — SCREEN DOES NOT PASSstock

Is ITC Halal?

Tobacco company — primary business is haram.

What You Should Know

ITC's FY2025-26 consolidated report shows ₹93,792.38 crore of assets, ₹2,399.06 crore of borrowings and leases, ₹3,008.79 crore of cash and bank balances, ₹32,840.19 crore of investments and ₹89,913.33 crore of revenue. Cigarettes/cigars plus unmanufactured tobacco were ₹43,979.01 crore, approximately 49.24% of gross product and service revenue; tobacco remains the primary qualitative failure.

⚠️ Concerns

  • Cigarettes/cigars revenue is ₹40,601.00 crore
  • Unmanufactured tobacco revenue is ₹3,378.01 crore
  • Liquidity/assets is 38.22% under the examined asset screen
  • Disclosed interest income is 1.63% of revenue

Current quantitative Sharia screen

Based on annual-report figures for the period ended 2026-03-31; calculated 2026-07-15.

INR · crore
Interest-bearing debt / assets
2.56%Within limit
Below 33.333% under FTSE Yasaar

2,399.06 / 93,792.38

Cash + interest-bearing securities / assets
38.22%Above limit
Below 33.333% under FTSE Yasaar

35,848.98 / 93,792.38

Receivables + cash / assets
7.39%Within limit
Below 50% under FTSE Yasaar

6,931.65 / 93,792.38

Non-compliant income / revenue
1.63%Within limit
No more than 5% under FTSE Yasaar

1,462.23 / 89,913.33

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 2.56%, liquidity/assets is 38.22% above the examined limit, receivables-plus-cash/assets is 7.39% and interest income is 1.63%; the tobacco activity also fails independently.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 38.22%, above the examined MSCI total-assets limit, and the tobacco-centered activity fails independently.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 38.22%, above the examined Malaysia 33% limit; tobacco activity also fails independently.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed market-cap series is not stored; the disclosed tobacco activity and liquidity failure already determine the result.

Business-activity disclosure

ITC's consolidated report identifies cigarettes/cigars and unmanufactured tobacco as major revenue segments. Tobacco is treated as impermissible under the existing qualitative verdict and the disclosed segment revenue independently fails the activity screen.

Limitation: The tobacco numerator is disclosed by segment, but other product, associate and subsidiary activities are not individually classified by every scholar or methodology.

Purification

Purification is not calculated because the tobacco-centered core business fails the activity screen; interest income is evidence for screening, not a donation prescription.

Inputs, assumptions and primary sources
  • Amounts are INR crore from ITC's consolidated Report and Accounts 2026.
  • Debt includes borrowings and lease liabilities; cash includes cash equivalents plus other bank balances; investments combine non-current and current investments.
  • Trade receivables are the consolidated receivable numerator.
  • Cigarettes/cigars revenue of INR 40,601.00 crore plus unmanufactured tobacco revenue of INR 3,378.01 crore is used as a disclosed tobacco-revenue numerator; consolidated revenue from operations is INR 89,913.33 crore.
  • Consolidated interest income is INR 1,462.23 crore.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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