LT
Larsen & Toubro
Is LT Halal?
Indian engineering and construction — permissible.
What You Should Know
L&T's FY2025-26 consolidated annual report reports INR 452,549.88 crore of assets, INR 125,496.59 crore of borrowings and leases, INR 20,847.67 crore of cash and bank balances, INR 66,118.78 crore of investments, INR 60,461.26 crore of trade receivables and INR 291,635.04 crore of total income. Debt/assets is 27.73%, liquidity/assets is 17.76%, receivables-plus-cash/assets is 17.97% and disclosed interest income is 1.08%; the known ratios pass, while finance-services, defense and project end uses remain qualitative.
⚠️ Concerns
- •Finance-services and finance-lease activity is consolidated with engineering
- •Defense and government project end uses are not quantified
- •Held-for-sale assets and financing activities require continuing review
- •Disclosed interest income is 1.08% of total income; no fixed purification percentage is asserted
Current quantitative Sharia screen
Based on annual-report figures for the period ended 2026-03-31; calculated 2026-07-15.
125,496.59 / 452,549.88
86,966.45 / 452,549.88
81,308.93 / 452,549.88
3,161.63 / 291,635.04
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 27.73%, liquidity/assets is 17.76%, receivables-plus-cash/assets is 17.97% and interest income is 1.08%; the known ratios pass, while activity classification remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt, liquidity and receivables-plus-cash ratios are below the examined MSCI total-assets limits; the consolidated finance-services and defense perimeter remains qualitative.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 27.73% and liquidity/assets is 17.76%, below the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed 24- or 36-month market-cap series is not stored, so market-cap denominator methods are not calculated.
Business-activity disclosure
L&T's engineering, construction, manufacturing and technology activities are generally permissible, but the consolidated group also reports finance-services/lease activity and defense-related contracts that require scholar and end-use review.
Limitation: The consolidated filing does not provide a universal prohibited-revenue numerator for defense, financing or project end uses.
Purification
Interest income is disclosed, but no scholar-approved purification percentage is calculated and prohibited revenue is not universally allocated.
Inputs, assumptions and primary sources
- Amounts are INR crore from L&T's FY2025-26 consolidated annual report.
- Debt includes non-current borrowings, current borrowings, current maturities of long-term borrowings and lease liabilities.
- Cash is cash and cash equivalents plus other bank balances; investments combine joint-venture/associate investments and current investments.
- Trade receivables are used as the receivable numerator; loans toward financing activities are not silently treated as trade receivables.
- Total income is INR 291,635.04 crore and disclosed interest income is INR 3,161.63 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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