Is Infosys Ltd (INFY) Halal?

NYSE Technology India $52.4B
✓ HALAL
Confidence: 95/100
Infosys Ltd (INFY) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.6% against the AAOIFI threshold of 30%, Infosys Ltd comfortably passes the key financial ratio tests. The company operates in the Technology sector (Information Technology Services), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.6%
/ 30%
7.6%
/ 30%
10.0%
/ 30%
1.79%
/ 5%
✓ HALAL
DJIM 1.6%
/ 33%
7.6%
/ 33%
10.0%
/ 33%
1.79%
/ 5%
✓ HALAL
MSCI 5.5%
/ 33%
25.9%
/ 33%
34.2%
/ 33%
1.79%
/ 5%
✗ NOT HALAL
S&P 1.6%
/ 33%
7.6%
/ 33%
10.0%
/ 33%
1.79%
/ 5%
✓ HALAL
FTSE 5.5%
/ 33%
25.9%
/ 33%
34.2%
/ 50%
1.79%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
16.7
Forward: 15.2
EPS
$0.77
Dividend Yield
402.0%
Payout: 67.0%
P/B Ratio
5.6
EV/EBITDA
11.4
EV: $50.0B
Revenue
$19.3B
Growth: 3.2%
Beta
0.2
Low volatility
Current Ratio
1.8

Profitability

Gross Margin 29.4%
Operating Margin 18.0%
Net Margin 16.2%
Return on Equity (ROE) 32.7%
Return on Assets (ROA) 15.7%

Cash Flow & Balance Sheet

Operating Cash Flow$4.4B
Free Cash Flow$4.1B
Total Debt$962M
Debt-to-Equity10.5
Current Ratio1.8
Total Assets$17.4B

Price & Trading

Last Close$13.16
50-Day MA$15.32
200-Day MA$16.89
Avg Volume16.9M
Beta0.2
52-Week Range
$12.57
$30.00

About Infosys Ltd (INFY)

CEO
Mr. Salil Satish Parekh
Employees
337,034
Sector
Technology
Industry
Information Technology Services
Country
India
Exchange
NYSE
Market Cap
$52.4B
Currency
USD

Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and digital services in North America, Europe, India, Switzerland, and internationally. It provides digital marketing and digital workplace, digital commerce, digital experience and interactions, and metaverse; data analytics and AI, applied AI, generative AI, and sustainability; blockchain, engineering, and Internet of Things; enterprise agile DevOps, API economy and microservices, application modernization, cloud, digital process automation, digital supply chain, Microsoft business application and cloud business, service experience transformation, energy transition, Network Transformation Services, Infrastructure Services cyber security, and quality engineering solutions; Oracle, SAP, and Saleforce solutions; Topaz, an AI-first set of services, solutions, and platforms using generative AI technologies; and Aster, a set of AI-amplified marketing services, solutions, and platforms. The company also offers Finacle, a core banking solution; Edge suite of products; Panaya platform, Infosys Equinox, Infosys Live Enterprise Suite, Infosys Wingspan, Infosys Helix, Infosys Meridian, Infosys Polycloud, Infosys Cortex, and Stater digital platforms; and Infosys McCamish, an insurance platform. It serves aerospace and defense, agriculture, automotive, chemical manufacturing, communication, consumer packaged goods, education, engineering procurement and construction, financial, healthcare, high technology, industrial manufacturing, information services and publishing, insurance, life science, logistics and distribution, media, entertainment, mining, oil and gas, private equity, professional, public, retail, semiconductor, travel, hospitality, utilities, and waste management industries. The company has a strategic collaboration with Anthropic PBC for the development of enterprise AI solutions to companies across telecommunications, financial services, manufacturing, and software development. Infosys Limited has strategic collaboration with Intel to develop purpose-built agentic services suite. The company was formerly known as Infosys Technologies Limited and changed its name to Infosys Limited in June 2011. Infosys Limited was incorporated in 1981 and is headquartered in Bengaluru, India.

Purification Calculator

As a halal stock with 1.79% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Infosys Ltd (INFY) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Infosys Ltd 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 Infosys Ltd's debt ratio?

Infosys Ltd's debt ratio is 1.6% 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 5.5%.

Does Infosys Ltd require dividend purification?

Yes, Infosys Ltd has an impermissible income ratio of 1.79%, which means 1.79% 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 Infosys Ltd's key financial metrics?

Infosys Ltd has a market capitalization of $52.4B, trailing P/E ratio of 16.7, and revenue of $19.3B. The company maintains a gross margin of 29.4% and a net margin of 16.2%. Return on equity stands at 32.7%.

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.