Is IMB.L (Imperial Brands PLC) Halal or Haram?

Based on our AAOIFI-standard shariah screening, IMB.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Imperial Brands PLC's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 38.80% exceeds the ≤33% threshold.

Imperial Brands PLC is a major global tobacco company known for manufacturing and selling cigarettes, fine-cut tobacco, cigars, and next-generation products like vapes and heated tobacco. The company operates a vast portfolio of recognizable brands including Davidoff, Gauloises, Winston, Golden Virginia, and Rizla papers , serving markets across Europe, the Americas, and Australasia. It is currently transitioning some of its focus toward potentially less harmful alternatives like its 'blu' vape brand and 'Zone-X' oral nicotine pouches. For Muslim investors, Imperial Brands is classified as Not Halal (Haram) under AAOIFI standards. The primary issue is the business activity itself ; the production and sale of tobacco are widely considered impermissible in Islamic finance due to the significant health harm associated with smoking . Consequently, even if the financial ratios were perfect, the stock would likely remain off-limits for shariah-conscious portfolios . Financially, the company also faces compliance hurdles beyond its business model. Its interest-bearing debt relative to its market capitalization stands at 38.8%, which violates the 33% maximum threshold set for shariah compliance, indicating a heavy reliance on leverage. Although its cash and interest-income levels are within acceptable limits, the combination of a prohibited industry and excessive debt makes this stock non-compliant. Imperial Brands PLC operates in the Consumer Defensive sector under the Tobacco industry and is headquartered in Bristol, GB. The company is led by CEO Lukas Jean-Baptiste Paravicini and employs approximately 25,600 people.

IMB.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. IMB.L passed 2 of these 4 screens.

IMB.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.