Is HLMA.L (Halma plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HLMA.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 (5.37% vs ≤33% threshold), interest income ratio (0.22% vs ≤5% threshold), and cash & securities ratio (1.98% vs ≤33% threshold).

Halma plc is a global group of life-saving technology companies operating across three main sectors: Safety, Environmental & Analysis, and Medical. Instead of a single product, they own a diverse portfolio of subsidiaries that manufacture critical equipment like fire detection systems, elevator safety sensors, and optical analysis tools used in water treatment. Their niche focus on regulation-driven markets provides a defensive quality to their business model, as safety standards are rarely compromised even during economic downturns. For Muslim investors, Halma plc currently passes all AAOIFI shariah screening criteria with flying colours. The company has successfully cleared the business activity screen because its revenue comes from permissible industrial and healthcare technologies, not prohibited industries. Additionally, it passes all three financial ratio screens, confirming that its capital structure and income sources align with Islamic finance principles. From a financial perspective, Halma is particularly attractive due to its low reliance on interest-based leverage. With a debt-to -market cap ratio of only 5.4%, the company operates with very low financial risk compared to the 33% threshold allowed. Similarly, its interest income is minimal at just 0.22% of total revenue, meaning investors do not need to worry about significant purification of dividends. Going forward, investors should monitor Halma's acquisition strategy, as the company frequently buys smaller firms to grow. While their current balance sheet is very clean, future acquisitions funded by heavy debt could impact their compliance ratios. However, given their historical discipline, Halma remains a strong candidate for a halal investment portfolio. Halma plc operates in the Industrials sector under the Conglomerates industry and is headquartered in Amersham, GB. The company is led by CEO Marc Arthur Ronchetti and employs approximately 8,000 people.

HLMA.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. HLMA.L passed 4 of these 4 screens.

Although HLMA.L passes all shariah screens, it does earn $4.9M in interest income (0.22% 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 $0.22 to purify the income.

HLMA.L was last screened on 2026-03-01. 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.