TSX Shariah screener · September 2026

Is Ag Growth International (AFN) Halal?

FAIL

Ag Growth International Inc. · TSX: AFN · Industrials

The short answer

Ag Growth International (AFN) is a FAIL. The business gate passes: the company makes and sells farm and commercial grain-handling and storage equipment - grain bins, dryers, augers, conveyors, food and feed processing systems - with no conventional banking or insurance, no alcohol, gambling, weapons, or other prohibited activity as its core business. The debt gate fails catastrophically: about C$960M of interest-bearing debt at June 30, 2026 is roughly 821% of the ~C$117M September 2026 market cap, against a ~33% ceiling. Because a quantitative fail on any gate is enough, the income gate was not reached (though filings do disclose a tiny C$38k of interest income for the first half of 2026, about 0.01% of revenue). No public Zoya, Musaffa or ShariaPortfolio rating was found for this ticker as of September 2026. As with every screener here, this is a rules-based screening of published figures, not a religious ruling - consult a qualified scholar for personal guidance.

Gate 1 — Business activity: PASS

Ag Growth International - better known as AGI - builds the physical equipment of the agricultural supply chain: on-farm grain bins, dryers, augers and conveyors in its Farm segment, and large grain-handling and storage systems plus food and feed processing equipment for ports, elevators and food processors in its Commercial segment. That is a manufacturing business, full stop. The filings mention project-finance structures such as finance leases and a joint-venture investment in Brazil, but those are ways of selling equipment, not a financial-services business. There is no conventional banking or insurance, no alcohol, gambling, weapons, or other prohibited activity in the company's reported business. Facts only, no fatwa.

Gate 2 — Debt: FAIL

This is one of the starkest debt fails on the site. The Q2 2026 interim balance sheet at June 30, 2026 reports current long-term debt of C$233k and noncurrent long-term debt of C$572,322k - senior credit facilities maturing in 2028 and 2030 - plus senior unsecured subordinated debentures of C$84,720k (current), C$94,211k (noncurrent) and convertible unsecured subordinated debentures of C$208,436k. Total interest-bearing debt: about C$960M (C$959,922k exactly), before even adding the C$47.8M of lease liabilities. Against a September 2026 market capitalization of about C$116.9M (18,879,479 shares outstanding at a September 29, 2026 price of C$6.19), the debt-to-market-cap ratio is roughly 821% - against a ~33% ceiling. The senior credit facilities alone, at C$575.9M, are about 493% of the market cap. The stock has collapsed as TD Cowen downgraded it to Hold on September 28, 2026, citing debt maturities and refinancing risk. This is a rules-based number, and it is not close.

Gate 3 — Non-compliant income: not reached

The screen stops at the debt gate, which fails outright - a quantitative fail on any gate is enough, so the income gate was not reached and this page does not claim an income-gate result. For reference only: the company's filings do disclose interest income - Note 13(e) of the Q2 2026 interim statements shows C$27k of interest income for Q2 2026 and C$38k for the six months to June 30, 2026, against C$605,351k of six-month revenue - about 0.01%. Immaterial either way.

Key figures used

Total interest-bearing debt: ~C$960M at June 30, 2026 (long-term debt C$572,322k + C$233k current portion; senior unsecured subordinated debentures C$84,720k + C$94,211k; convertible unsecured subordinated debentures C$208,436k)
Lease liabilities of C$47.8M excluded from the headline total — the gate fails before they are even counted
Market cap: ~C$116.9M (18,879,479 shares outstanding × C$6.19, September 29, 2026)
Debt ÷ market cap: ~821% vs ~33% ceiling — FAIL
Senior credit facilities alone (~C$575.9M): ~493% of market cap
For reference, disclosed interest income: C$38k for H1 2026 ≈ 0.01% of C$605,351k revenue — income gate moot
Business: Farm and Commercial grain-handling/storage equipment manufacturing — no prohibited core activity

Frequently asked questions

Is Ag Growth International (AFN) halal?

Our September 2026 screen gives Ag Growth International (TSX: AFN) a FAIL. The business gate passes - it manufactures farm and commercial grain-handling and storage equipment, with no conventional banking, insurance, alcohol, gambling, weapons or other prohibited activity as its core business. But the debt gate fails decisively: about C$960M of interest-bearing debt at June 30, 2026 is roughly 821% of the ~C$116.9M market capitalization, against a ~33% ceiling. This is a rules-based screening of published figures, not a religious ruling.

Why does AFN fail the debt screen so badly?

AFN carries about C$960M of interest-bearing debt - senior credit facilities of C$575.9M maturing in 2028 and 2030 plus C$387.4M of senior and convertible unsecured subordinated debentures - against a September 2026 market cap of only about C$116.9M, because the share price has collapsed to C$6.19. That makes debt-to-market-cap roughly 821%, versus a ~33% ceiling. Even the senior credit facilities alone are about 493% of the market cap, and lease liabilities of C$47.8M would push the total further still.

Does AFN earn interest or other non-compliant income?

The income gate was not reached - the screen stops at the debt gate, which fails outright. The company's filings do disclose interest income, though: Note 13(e) of the Q2 2026 interim statements shows C$38k for the six months to June 30, 2026, about 0.01% of C$605,351k of revenue. That is immaterial, but the income gate is moot regardless because the debt gate fails.

Could a share price recovery change AFN's result?

In principle the debt-to-market-cap ratio falls as the share price rises, but the starting point is roughly 821% against a ~33% ceiling. The market cap would need to rise roughly twenty-five times over, to about C$2.9B, to bring the reported debt ratio down to the ceiling - and that assumes debt itself doesn't grow, when TD Cowen downgraded the stock to Hold in September 2026 precisely over debt maturities and refinancing risk. A re-screen at a higher price would show the same business and the same debt.

What do Zoya, Musaffa or ShariaPortfolio say about AFN?

No public Zoya, Musaffa or ShariaPortfolio rating for AFN was found as of September 2026, so this screen relies entirely on the company's published figures. Muslim investors who want a second opinion can look at other industrials screeners on this site - CGI (GIB.A) and Stantec (STN) are both PASS, while Onex (ONEX) and Brookfield Business Partners (BBU.UN) screen FAIL on leverage for their own reasons.

Sources

Screened September 30, 2026 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.