By FMTeam Halal investing, also called Shariah-compliant investing, involves selecting companies whose businesses and financial practices meet Islamic investment principles. Companies involved in conventional banking, interest-based finance, alcohol, gambling, pork products and certain other prohibited activities are generally excluded.
Financial screening is also important. Under the methodology used for the Nifty Shariah indices, interest-bearing debt must generally remain at or below 25% of total assets, while interest income and returns from interest-based investments must remain within prescribed limits. Investors may also need to purify the small portion of income arising from non-compliant sources.
As of July 31, 2026, Infosys, TCS, Sun Pharmaceutical Industries, Hindustan Unilever and UltraTech Cement were all constituents of the Nifty50 Shariah Index. NSE Indices conducts Shariah-compliance screening every month, which means a company’s eligibility can change over time.
The following companies were selected based on their current Shariah-index inclusion, FY26 financial performance, business quality, market position and long-term growth potential.
| Company | Business Profile | FY26 Revenue or Sales | Main Growth Catalyst | Investment Profile |
| Infosys | IT services and digital transformation | ₹1,78,650 crore | AI, cloud and large deals | Cash-rich growth company |
| Tata Consultancy Services | Global technology services | ₹2,67,021 crore | Enterprise AI and strong contracts | Large defensive IT leader |
| Sun Pharmaceutical Industries | Pharmaceuticals and innovative medicines | ₹58,220.1 crore | Specialty-drug expansion | Healthcare growth opportunity |
| Hindustan Unilever | Consumer goods and personal care | ₹63,763 crore | Premiumisation and volume recovery | Defensive consumption play |
| UltraTech Cement | Cement and building materials | ₹87,384 crore | Capacity expansion and infrastructure demand | Cyclical market leader |
1. Infosys
Best for: Shariah-compliant technology exposure and strong cash generation
- FY26 consolidated revenue: ₹1,78,650 crore
- FY26 net profit: ₹29,440 crore
- Free cash flow: ₹33,097 crore
- Large-deal value: $14.9 billion
- Nifty50 Shariah weight:75%
Infosys was the largest constituent of the Nifty50 Shariah Index by weight as of July 31, 2026. The company provides digital transformation, cloud, artificial intelligence, engineering and consulting services to global enterprises.
FY26 revenue increased by 9.6%, while net profit reached ₹29,440 crore. Infosys also ended the year with consolidated cash and investments of ₹43,075 crore and reported that it remained debt-free. These characteristics support its position under financial Shariah-screening requirements.
Key Growth Catalyst: Enterprise AI and Large Deals
Infosys is using its Topaz platform to help corporate clients adopt generative and agentic AI. Its FY26 large-deal total contract value reached $14.9 billion, with 55% coming from net-new business.
Advantage: Strong balance sheet, high free cash flow and long-term relationships with international clients.
Limitation: Revenue remains sensitive to technology spending in North America and Europe.
2. Tata Consultancy Services
Best for: Scale, stability and long-term dividend potential
- FY26 revenue: ₹2,67,021 crore
- FY26 net income: ₹52,820 crore
- Total contract value: $40.7 billion
- Annualised AI revenue: More than $2.3 billion
- Nifty50 Shariah weight:20%
Tata Consultancy Services was the second-largest company in the Nifty50 Shariah Index by weight in July 2026. TCS provides technology consulting, software development, cloud services, cybersecurity and business-process solutions.
The company generated FY26 revenue of ₹2,67,021 crore and net income of ₹52,820 crore. Its operating margin reached 25%, while the net margin stood at 19.8%.
Key Growth Catalyst: AI and Contract Wins
TCS reported an annualised AI revenue run rate exceeding $2.3 billion during the fourth quarter. Its total contract value for FY26 reached $40.7 billion, providing visibility into future business.
Advantage: Large operating scale, strong margins and an established international customer base.
Limitation: Its large revenue base may make high percentage growth more difficult than for smaller IT companies.
3. Sun Pharmaceutical Industries
Best for: Shariah-compliant healthcare and pharmaceutical exposure
- FY26 sales: ₹58,220.1 crore
- FY26 net profit: ₹11,479.4 crore
- Innovative-medicines sales: $1.42 billion
- India formulations sales: ₹19,290.4 crore
- Nifty50 Shariah weight:91%
Sun Pharma is India’s largest pharmaceutical company and was the third-largest constituent of the Nifty50 Shariah Index as of July 31, 2026.
The company sells generic medicines, active pharmaceutical ingredients and innovative medicines across India, the United States and other international markets. FY26 sales increased by 11.9%, while EBITDA grew by 16.1%.
Key Growth Catalyst: Innovative Medicines
Sun Pharma’s innovative-medicines sales reached $1.42 billion during FY26 and represented approximately 20.7% of total sales. The company is expanding in dermatology, ophthalmology and other specialty-treatment categories.
Its share of India’s pharmaceutical market also increased from 8.1% to 8.4% during the year.
Advantage: Strong domestic leadership and an expanding higher-margin innovative-medicines portfolio.
Limitation: Pharmaceutical companies face regulatory, clinical-development and patent-related risks.
4. Hindustan Unilever
Best for: Defensive consumer exposure and dependable brand strength
- FY26 turnover: ₹63,763 crore
- FY26 reported profit after tax: ₹10,652 crore
- Underlying volume growth: 4%
- EBITDA margin:6%
- Nifty50 Shariah weight:88%
Hindustan Unilever is one of India’s largest consumer-goods companies. Its brands cover home care, personal care, beauty, foods and beverages.
The company’s major brands include Surf Excel, Dove, Lifebuoy, Lux, Vim, Horlicks and Brooke Bond. FY26 turnover increased by 5%, supported by underlying volume growth of 4%.
Key Growth Catalyst: Premiumisation
HUL is expanding in premium beauty, wellness, nutrition and convenience-oriented products. Vaseline and Sunsilk crossed ₹1,000 crore in annual turnover during FY26, taking the company’s number of brands above that milestone to 20.
The company’s deep urban and rural distribution provides relatively stable demand compared with cyclical industries.
Advantage: Strong brands, broad household reach and consistent operating cash generation.
Limitation: Commodity inflation and high market valuations can restrict future returns.
5. UltraTech Cement
Best for: Infrastructure and housing-sector exposure
- FY26 consolidated net sales: ₹87,384 crore
- FY26 profit after tax: ₹8,305 crore before exceptional items
- Global cement capacity: Approximately 205.5 million tonnes annually
- FY26 operating cash flow: ₹14,398 crore
- Nifty50 Shariah weight:95%
UltraTech Cement is India’s largest cement producer and one of the world’s largest cement companies outside China. It was among the ten largest constituents of the Nifty50 Shariah Index in July 2026.
FY26 net sales increased by 17%, while profit after tax before exceptional items grew by 36%. The company also improved its net debt-to-EBITDA ratio to 0.94 times.
Key Growth Catalyst: Capacity Expansion
UltraTech’s domestic grey-cement capacity crossed 200 million tonnes annually during FY26. Projects under development are expected to increase consolidated capacity beyond 240 million tonnes annually.
Demand from housing, roads, railways and other infrastructure projects may support long-term volume growth.
Advantage: Industry-leading scale, extensive distribution and strong operating cash flow.
Limitation: Cement demand and profitability are cyclical and sensitive to energy, freight and construction activity.
Key Risks for Halal Investors
Shariah-compliant investing involves risks beyond normal stock-market movements:
- Compliance can change: Companies are screened regularly and may be removed when debt, income or business activities breach prescribed limits.
- Different screening standards: Islamic index providers and scholars may apply different financial ratios.
- Income purification: Investors may need to donate the non-compliant portion of dividends or income.
- Sector concentration: Shariah indices often have greater exposure to technology, healthcare and consumer companies because conventional financial stocks are excluded.
- Valuation risk: High-quality companies may trade at expensive earnings multiples.
- Business risk: Shariah compliance does not guarantee profitability or positive investment returns.
Infosys and TCS provide strong technology exposure, while Sun Pharma adds healthcare diversification. Hindustan Unilever offers relatively defensive consumer exposure, and UltraTech Cement provides participation in India’s housing and infrastructure growth.
Investors should verify each company’s latest status through a recognised Shariah index or qualified Islamic-finance adviser before purchasing shares. This article is for informational purposes and should not be treated as investment or religious advice.