Is Telekom Malaysia (4863) Halal?

KLS Communication Services Malaysia $28.2B
✓ HALAL
Confidence: 95/100
Telekom Malaysia (4863) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 12.8% against the AAOIFI threshold of 30%, Telekom Malaysia comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Telecom Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 12.8%
/ 30%
9.4%
/ 30%
8.0%
/ 30%
0.87%
/ 5%
✓ HALAL
DJIM 12.8%
/ 33%
9.4%
/ 33%
8.0%
/ 33%
0.87%
/ 5%
✓ HALAL
MSCI 18.0%
/ 33%
13.2%
/ 33%
11.3%
/ 33%
0.87%
/ 5%
✓ HALAL
S&P 12.8%
/ 33%
9.4%
/ 33%
8.0%
/ 33%
0.87%
/ 5%
✓ HALAL
FTSE 18.0%
/ 33%
13.2%
/ 33%
11.3%
/ 50%
0.87%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
16.3
Forward: 14.9
EPS
$0.45
Dividend Yield
395.0%
Payout: 56.0%
P/B Ratio
2.7
EV/EBITDA
6.6
EV: $29.3B
Revenue
$11.9B
Growth: 6.8%
Beta
0.2
Low volatility
Current Ratio
1.1

Profitability

Gross Margin 32.7%
Operating Margin 9.4%
Net Margin 14.4%
Return on Equity (ROE) 16.5%
Return on Assets (ROA) 6.8%

Cash Flow & Balance Sheet

Free Cash Flow$1.8B
Total Debt$3.7B
Debt-to-Equity34.2
Current Ratio1.1
Total Assets$20.5B

Price & Trading

Last CloseMYR 7.31
50-Day MAMYR 7.70
200-Day MAMYR 7.32
Avg Volume5.4M
Beta0.2
52-Week Range
MYR 6.19
MYR 8.30

About Telekom Malaysia (4863)

CEO
Mr. Amar Huzaimi Bin Md Deris
Sector
Communication Services
Industry
Telecom Services
Country
Malaysia
Exchange
KLS
Market Cap
$28.2B
Currency
MYR

Telekom Malaysia Berhad engages in the establishment, maintenance, and provision of telecommunications and related services in Malaysia and internationally. The company offers fixed telephony and broadband, mobility, Wi-Fi, content, cloud, data center, cybersecurity, internet of things, information and communications technology, content services, GPU-as-a-service, and smart services. It also provides network connectivity and bandwidth; project management; provision of fiber optic transmission network; managed network, and value-added telecommunication and information technology; and information and communications technology (ICT) and cloud consumption services. In addition, the company engages in the provision of research and development activities in the areas of communications, hi-tech applications, and products and services in related business; and property development activities. Further, it provides network infrastructure facilities and services; last mile services for fixed and wireless consisting of broadband, messaging, and voice; provision of digital solution; managing and administering a multimedia university; and network system integration and centric; and fleet management services, as well as training and related services. Additionally, the company engages in the international telecommunications; and provision of ICT system security and smart building services, including smart tenant services for building owners, operators, residents, and visitors; and provision of infrastructure for hosting, data processing services and related activities. The company was founded in 1946 and is headquartered in Kuala Lumpur, Malaysia.

Purification Calculator

As a halal stock with 0.87% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Telekom Malaysia (4863) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Telekom Malaysia is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Telekom Malaysia's debt ratio?

Telekom Malaysia's debt ratio is 12.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 18.0%.

Does Telekom Malaysia require dividend purification?

Yes, Telekom Malaysia has an impermissible income ratio of 0.87%, which means 0.87% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Telekom Malaysia's key financial metrics?

Telekom Malaysia has a market capitalization of $28.2B, trailing P/E ratio of 16.3, and revenue of $11.9B. The company maintains a gross margin of 32.7% and a net margin of 14.4%. Return on equity stands at 16.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.