TEF

Telefónica SA

DOUBTFUL — SCREEN DOES NOT PASSstock

Is TEF Halal?

Telecommunications are generally permissible, but tracked debt/assets exceeds the examined limits and content and regional mix remain qualitative.

What You Should Know

Telefónica's December 31, 2025 consolidated ESEF statements report EUR 92,017 million of assets, EUR 41,921 million of tracked debt and lease liabilities, EUR 6,564 million of cash, EUR 870 million of current financial assets, EUR 9,662 million of current receivables and other assets and EUR 35,120 million of revenue. Debt/assets is 45.56%, liquidity/assets is 8.08%, receivables plus cash/assets is 17.63% and finance income is 2.57% of revenue. Telecom is generally permissible, but leverage, media content and regional exposure require review.

⚠️ Concerns

  • Debt/assets of 45.56% exceeds the examined limits
  • Television, media and entertainment content mix
  • Spectrum, infrastructure and regional regulatory risk
  • Finance income and purification remain school-dependent

Current quantitative Sharia screen

Based on annual-report/ESEF figures for the period ended 2025-12-31; calculated 2026-07-15.

EUR · millions
Interest-bearing debt / assets
45.56%Above limit
Below 33.333% under FTSE Yasaar

41,921 / 92,017

Cash + interest-bearing securities / assets
8.08%Within limit
Below 33.333% under FTSE Yasaar

7,434 / 92,017

Receivables + cash / assets
17.63%Within limit
Below 50% under FTSE Yasaar

16,226 / 92,017

Non-compliant income / revenue
2.57%Within limit
No more than 5% under FTSE Yasaar

902 / 35,120

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

Tracked debt/assets is 45.56%, above the examined debt limit; liquidity/assets is 8.08%, receivables-plus-cash/assets is 17.63% and finance income is 2.57% of revenue.

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

Tracked debt/assets of 45.56% exceeds the examined MSCI limit even though liquidity and receivables-plus-cash ratios are below their limits.

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

Tracked debt/assets of 45.56% exceeds the examined 33% limit; this is not an official SAC classification.

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

A properly licensed and reproducible historical market-cap series is not stored; the filing-based debt screen fails.

Business-activity disclosure

Telefónica provides telecommunications, connectivity, media and related digital services that are generally permissible, while content, spectrum, regional mix and financing structures require qualitative review.

Limitation: The filing does not allocate revenue into a universal prohibited-activity numerator across content, advertising, enterprise and regional operations.

Purification

Finance income is disclosed but no scholar-approved prohibited-income percentage or universal activity numerator is provided.

Inputs, assumptions and primary sources
  • Amounts are EUR millions from Telefónica's 2025 consolidated ESEF financial statements.
  • Debt combines noncurrent and current financial liabilities with noncurrent and current lease liabilities; this is a conservative tracked-debt proxy.
  • Cash is EUR 6,564 million, current financial assets are EUR 870 million and current receivables and other assets are EUR 9,662 million.
  • Revenue is EUR 35,120 million and finance income is EUR 902 million.
  • Telecom operations are generally permissible, but content, spectrum, regional mix and leverage require continuing qualitative review; no universal prohibited-revenue numerator is disclosed.

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.

🧾
Own TEF? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track TEF and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →