WMS

Advanced Drainage Systems, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is WMS Halal?

Leading manufacturer of thermoplastic corrugated-pipe and water-management-solutions products — permissible water-management-products manufacturing business with manageable financial-screen profile.

What You Should Know

Advanced Drainage Systems manufactures water-management, corrugated-pipe, stormwater and onsite-septic products. Infrastructure manufacturing is generally permissible; construction, municipal and project end uses remain qualitative. Its March 31, 2026 Form 10-K reports assets of $4,505.623 million, conservative debt/leases of $1,864.521 million, cash of $223.012 million, receivables of $390.536 million and annual revenue of $3,050.376 million. Debt/assets is 41.38%, liquidity/assets is 4.95%, receivables plus cash/assets is 13.62%, and disclosed other interest/revenue is 0.82%; examined FTSE, MSCI and Malaysia asset screens fail on debt.

⚠️ Concerns

  • Current filing-based debt/assets is 41.38%, above the examined 33.33% limit
  • Construction and municipal end uses
  • Disclosed other interest income of $25 million; consult a qualified scholar on purification
  • Resin/raw-material and construction-cycle exposure
  • No universal prohibited-revenue numerator

Current quantitative Sharia screen

Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
41.38%Above limit
Below 33.333% under FTSE Yasaar

1,864.521 / 4,505.623

Cash + interest-bearing securities / assets
4.95%Within limit
Below 33.333% under FTSE Yasaar

223.012 / 4,505.623

Receivables + cash / assets
13.62%Within limit
Below 50% under FTSE Yasaar

613.548 / 4,505.623

Non-compliant income / revenue
0.82%Within limit
No more than 5% under FTSE Yasaar

25 / 3,050.376

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

Debt/assets is 41.38%, above the examined 33.333% limit; liquidity/assets is 4.95%, receivables-plus-cash/assets is 13.62% and disclosed interest income is 0.82%.

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

Debt/assets is 41.38%, above the examined MSCI 33.33% limit; liquidity/assets is 4.95% and receivables-plus-cash/assets is 13.62%.

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

Debt/assets is 41.38%, above the examined Malaysia debt limit; infrastructure activity and prohibited-revenue allocation remain qualitative.

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

A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.

Business-activity disclosure

Advanced Drainage Systems manufactures and sells water-management and drainage infrastructure products. Infrastructure manufacturing is generally permissible, while construction, municipal and project end uses require qualitative review.

Limitation: The filing does not provide a universal prohibited-revenue numerator across all products and projects.

Purification

Advanced Drainage Systems discloses $25 million of other interest income, but no scholar-approved purification percentage is asserted for the operating business.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Advanced Drainage Systems' March 31, 2026 Form 10-K.
  • Conservative debt combines $1,630.251 million of debt, $160.071 million of finance-lease liabilities and $74.199 million of operating-lease liabilities.
  • Cash is $223.012 million and receivables are $390.536 million.
  • Fiscal-year revenue is $3,050.376 million and disclosed other interest income is $25 million, or 0.82% of revenue.
  • Water-management and drainage infrastructure products are generally permissible, while construction and government end uses remain qualitative.

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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