Is SVT.L (Severn Trent Plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SVT.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 98.19% exceeds the ≤33% threshold. Its interest income of 5.70% exceeds the ≤5% limit.

Severn Trent Plc is one of the UK's largest water companies, primarily serving 4.8 million households and businesses across the Midlands and Wales. Beyond its regulated water and sewerage services, the company operates a Business Services segment that focuses on renewable energy generation through anaerobic digestion, hydropower, and wind turbines, alongside property management. It plays a critical infrastructure role in the UK, ensuring essential water supply and waste treatment for a significant portion of the population. For Muslim investors using HalalStocks.co.uk, Severn Trent is currently classified as Not Halal (Haram) under AAOIFI standards. Although the company passed the business activity screen because water services are permissible, it failed two critical financial ratios. The most significant issue is the debt-to-market cap ratio, which sits at a staggering 98. 2%, well above the acceptable 33% threshold, indicating the company relies heavily on interest-bearing loans to fund its infrastructure projects. Furthermore, the company's interest income accounts for 5.70% of its total revenue, which narrowly fails the 5% tolerance limit set for non-operating interest income. Utilities often carry high debt loads due to the capital-intensive nature of maintaining pipes and treatment plants, but Severn Trent's leverage is currently too high for shariah compliance. Investors looking for exposure to the UK utilities sector would need to wait for significant deleveraging or look for competitors with cleaner balance sheets. Severn Trent Plc operates in the Utilities sector under the Regulated Water industry and is headquartered in Coventry, GB. The company is led by CEO James John Jesic and employs approximately 7,040 people.

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

SVT.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.