Is Tata Consultancy (TCS) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.0% / 30% | 4.5% / 30% | 5.4% / 30% | 1.29% / 5% | ✓ HALAL |
| DJIM | 1.0% / 33% | 4.5% / 33% | 5.4% / 33% | 1.29% / 5% | ✓ HALAL |
| MSCI | 5.9% / 33% | 26.1% / 33% | 31.4% / 33% | 1.29% / 5% | ✓ HALAL |
| S&P | 1.0% / 33% | 4.5% / 33% | 5.4% / 33% | 1.29% / 5% | ✓ HALAL |
| FTSE | 5.9% / 33% | 26.1% / 33% | 31.4% / 50% | 1.29% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 39.7% | |
| Operating Margin | 25.2% | |
| Net Margin | 18.3% | |
| Return on Equity (ROE) | 42.6% | |
| Return on Assets (ROA) | 22.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $489.1B |
| Free Cash Flow | $449.7B |
| Total Debt | $93.9B |
| Debt-to-Equity | 9.4 |
| Current Ratio | 2.5 |
| Total Assets | $1.6T |
Price & Trading
| Last Close | INR 2,377.40 |
| 50-Day MA | INR 2,739.96 |
| 200-Day MA | INR 3,039.38 |
| Avg Volume | 3.6M |
| Beta | 0.2 |
|
52-Week Range
INR 2,348.00
| |
About Tata Consultancy (TCS)
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services in the Americas, Europe, India, and internationally. The company provides TCS ADD, a suite of AI powered life sciences platforms; TCS BaNCS, a financial services platform; TCS BFSI Platforms, a cloud-native, as-a-service digital ecosystem for insurers and financial firms; TCS Chroma, a cloud-based human resource management system platform; TCS Customer Intelligence & Insights, an AI-driven customer analytics and real-time CDP solution; TCS ERP on Cloud, an SAP platform as a service; ignio, a cognitive automation software product; TCS iON, a learning ecosystem; and TCS HOBS, a cloud-native, catalog-centric platform for personalization of products and processes. It also offers TCS Intelligent Urban Exchange for enterprises and smart cities; TCS OmniStore, a retail commerce platform; TCS Optumera, a retail-connected strategic intelligence platform; TCS Tap, a platform for intelligent procurement; Quartz, a distributed ledger technology; TCS TwinX, an enterprise digital twin platform; TCS MasterCraft, an AI-driven cognitive automation product; Jile, an enterprise agile planning and delivery tool; and TCS DigiBOLT, an end-to-end, organization-wide enterprise platform. In addition, the company provides cloud, cognitive business, consulting, cybersecurity, data and analytics, enterprise solutions, IoT and digital engineering, TCS interactive, artificial intelligence, network solutions, and sustainability services. It serves banking; capital markets; consumer packaged goods and distribution; communications, media, and information services; education; energy, resources, and utilities; healthcare; high tech; insurance; life sciences; manufacturing; public services; retail; and travel and logistics industries. The company was founded in 1968 and is based in Mumbai, India. Tata Consultancy Services Limited is a subsidiary of Tata Sons Private Limited.
Purification Calculator
As a halal stock with 1.29% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Tata Consultancy (TCS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tata Consultancy 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 Tata Consultancy's debt ratio?
Tata Consultancy's debt ratio is 1.0% 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 5.9%.
Does Tata Consultancy require dividend purification?
Yes, Tata Consultancy has an impermissible income ratio of 1.29%, which means 1.29% 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 Tata Consultancy's key financial metrics?
Tata Consultancy has a market capitalization of $8.6T, trailing P/E ratio of 18.1, and revenue of $2.6T. The company maintains a gross margin of 39.7% and a net margin of 18.3%. Return on equity stands at 42.6%.
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.