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Is GSK.L (GSK plc) Halal or Haram?

London Stock ExchangeHealthcareDrug Manufacturers - General$88.43B2026-02-24
GSK.L is Halal4/4 screens passed

GSK passes all financial screening criteria comfortably, with its interest-bearing debt sitting at 20.0% of its market capitalisation, well below the 33% AAOIFI threshold. Furthermore, the company's non-operating interest income is negligible at just 0.52% of total revenue, indicating that the vast majority of its earnings come from permissible pharmaceutical sales rather than impermissible financial activities.

Shariah Screening Details for GSK.L

Business Activity

Permissible

GSK is a major global pharmaceutical company producing vaccines and medicines for HIV, oncology, and respiratory conditions, which are inherently permissible business activities under Shariah law.

Debt / Market Cap

20.04%

Debt: $17.72BThreshold: ≤33%

Interest Income

0.52%

Interest: $169.0MThreshold: ≤5%

Cash & Securities

3.85%

Cash: $3.41BThreshold: ≤33%

About GSK plc (GSK.L)

GSK plc is a global biopharma giant headquartered in the UK, focusing primarily on vaccines and specialty medicines. The company is a leader in respiratory treatments and HIV therapies, alongside a growing portfolio in oncology and immunology. Unlike some peers, GSK recently spun off its consumer healthcare division (Haleon), allowing it to focus strictly on high-value prescription drugs and vaccine development.

For Muslim investors, GSK is currently classified as Halal, passing all four AAOIFI screening metrics. The company’s core business of developing life-saving treatments aligns well with Islamic ethical principles of preserving life and health. Because it passes the business activity screen and all financial ratios, investors can hold this stock without the need for purification of the principal investment, though dividend purification may still apply to the small portion of interest income.

Fin ancially, GSK maintains a healthy balance sheet relative to Shariah standards. Its debt-to-market cap ratio is 2 0.0%, which provides a comfortable buffer against the 33% limit, and its cash holdings are relatively low at 3 .9%, suggesting efficient capital deployment rather than hoarding cash in interest-bearing accounts. The primary financial metric to watch is the interest income ratio, which is currently very low at 0.52%, showing that GSK relies almost exclusively on drug sales for revenue.

Going forward, investors should monitor GSK's debt levels if the company pursues large acquisitions to bolster its drug pipeline. While currently compliant, large-scale pharmaceutical mergers are often funded by debt, which could temporarily impact the debt -to-market cap ratio. However, as it stands, GSK represents a stable, compliant option within the healthcare sector.

CEO

Luke Victor Miels

Employees

68,629

IPO Date

1988-07-01

Headquarters

Brentford, GB

GSK.L Key Financial Statistics

Revenue

$32.67B

Net Income

$5.72B

EPS (Diluted)

$1.39

Stock Price

2192.00

Beta

0.27

52-Week Range

1242.5-2282

Total Debt

$17.72B

Total Equity

$16.38B

Current Ratio

0.82

GSK.L Financial Health & Profitability

Profit Margins

Gross Margin72.5%
Operating Margin21.9%
Net Margin17.5%

Revenue Growth (YoY)

+4.1%

Prior year: $31.38B

Net Debt

$14.32B

Cash: $3.40B — Debt: $17.72B

R&D Spending

$7.51B

% of Revenue

23.0%

Frequently Asked Questions About GSK.L

Is GSK.L (GSK plc) stock halal to invest in?
Based on our AAOIFI-standard shariah screening, GSK.L is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (20.04% vs ≤33% threshold), interest income ratio (0.52% vs ≤5% threshold), and cash & securities ratio (3.85% vs ≤33% threshold).
What does GSK plc do?
GSK plc is a global biopharma giant headquartered in the UK, focusing primarily on vaccines and specialty medicines. The company is a leader in respiratory treatments and HIV therapies, alongside a growing portfolio in oncology and immunology. Unlike some peers, GSK recently spun off its consumer healthcare division (Haleon), allowing it to focus strictly on high-value prescription drugs and vaccine development. For Muslim investors, GSK is currently classified as Halal, passing all four AAOIFI screening metrics. The company’s core business of developing life-saving treatments aligns well with Islamic ethical principles of preserving life and health. Because it passes the business activity screen and all financial ratios, investors can hold this stock without the need for purification of the principal investment, though dividend purification may still apply to the small portion of interest income. Fin ancially, GSK maintains a healthy balance sheet relative to Shariah standards. Its debt-to-market cap ratio is 2 0.0%, which provides a comfortable buffer against the 33% limit, and its cash holdings are relatively low at 3 .9%, suggesting efficient capital deployment rather than hoarding cash in interest-bearing accounts. The primary financial metric to watch is the interest income ratio, which is currently very low at 0.52%, showing that GSK relies almost exclusively on drug sales for revenue. Going forward, investors should monitor GSK's debt levels if the company pursues large acquisitions to bolster its drug pipeline. While currently compliant, large-scale pharmaceutical mergers are often funded by debt, which could temporarily impact the debt -to-market cap ratio. However, as it stands, GSK represents a stable, compliant option within the healthcare sector. GSK plc operates in the Healthcare sector under the Drug Manufacturers - General industry and is headquartered in Brentford, GB. The company is led by CEO Luke Victor Miels and employs approximately 68,629 people.
What screening criteria were used for GSK.L?
GSK.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. GSK.L passed 4 of these 4 screens.
Does GSK.L require income purification?
Although GSK.L passes all shariah screens, it does earn $169.0M in interest income (0.52% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.52 to purify the income.
When was GSK.L last screened?
GSK.L was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.

Disclaimer

This shariah compliance assessment for GSK.L (GSK plc) is provided for informational purposes only and does not constitute financial, investment, or religious advice. Screening criteria are based on widely accepted AAOIFI standards, but individual scholars may differ in their opinions. Always consult with a qualified Islamic scholar and licensed financial advisor before making investment decisions. Past screening status does not guarantee future compliance. Last screened: 2026-02-24.

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