Is Algoma Steel (ASTL) halal?
Algoma Steel Group (TSX: ASTL) gets a FAIL on two independent grounds: a defence joint venture with armoured-vehicle maker Roshel to develop ballistic steel, and about C$917M of interest-bearing debt - roughly 143% of its ~C$640M market cap, against a ~33% ceiling.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, weapons manufacturing, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — FAILED (defence joint venture)
Algoma Steel Group Inc. (TSX: ASTL; NASDAQ: ASTL) is a Sault Ste. Marie, Ontario steel producer making discrete plate and hot/cold-rolled sheet for automotive, construction, infrastructure, railcar, ship and other customers - that core steelmaking business is an ordinary industrial activity. But the business gate fails because of a company-level defence initiative: on April 7, 2026, Algoma announced the formation of Roshel Algoma Defence Solutions, a joint venture with Roshel Inc., "a Canadian-owned defence manufacturer of armoured vehicles," that "is expected to support the development of domestic ballistic steel and related manufacturing capabilities in Canada." Ballistic steel is armour for military vehicles, and the partner is an armoured-vehicle defence manufacturer. The company also cites "defence demand" among the end-markets for its discrete plate. Because weapons/military-equipment activity is a business exclusion under AAOIFI-style screens, the joint venture fails this screener's business gate. Facts only, no fatwa.
Gate two: the ratios — debt fails decisively, income passes, moot
The debt gate fails on its own, and it is not close. The June 30, 2026 balance sheet shows C$73.4M of bank indebtedness, C$495.0M of senior secured lien notes, and C$348.6M of governmental loans (C$348.3M long-term plus C$0.3M current portion) - about C$917M of interest-bearing debt, a figure swollen by the Large Enterprise Tariff Loan (LETL) facilities Algoma drew on to fund its electric-arc-furnace transition during the 50% U.S. Section 232 tariff disruption. Against a September 2026 market cap of roughly C$633-647M (TSX, about C$6.14 per share), that is about 143% - more than four times the ~33% ceiling. The income gates pass but are moot: Q2 2026 finance income of C$0.5M on C$267.5M of revenue is about 0.19% (ceiling ~5%), and C$62.6M of cash is about 10% of market cap. All figures are recomputed from the cited filings.
What other screeners say
No public Zoya, Musaffa or ShariaPortfolio coverage was found for Algoma Steel (ASTL) as of September 2026: web searches surfaced no public Zoya page for the ticker, no Musaffa public page (the only Musaffa hit was for an unrelated company, AOSL), and ShariaPortfolio publishes no public per-stock screening pages for it. The FAIL recorded here rests on Algoma's own disclosures.
The bottom line
Algoma Steel Group (ASTL) is a FAIL. The business gate fails: the April 2026 Roshel Algoma Defence Solutions joint venture with armoured-vehicle defence manufacturer Roshel Inc. - formed to develop domestic ballistic steel - is a company-level defence activity, and weapons/military-equipment activity is a business exclusion under AAOIFI-style screens. The debt gate fails independently and decisively: about C$917M of interest-bearing debt (bank indebtedness, senior secured lien notes, governmental loans) is roughly 143% of the ~C$640M September 2026 market cap, against a ~33% ceiling. The income gates pass (finance income C$0.5M on C$267.5M Q2 revenue = 0.19%) but are moot. 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.
Sources
- Algoma Steel Q2 2026 results (Roshel Algoma Defence JV April 7, 2026; revenue C$267.5M; finance income C$0.5M; debt components; governmental/LETL loans; cash C$62.6M)
- Algoma Steel Q2 2026 condensed interim financial statements (balance sheet at June 30, 2026)
- ASTL.TO price C$6.14 and market cap C$633.39M, September 25, 2026
- ASTL.TO market cap C$647.09M, September 24, 2026 (American Banking News)
- ASTL.TO market cap data, September 2026 (MarketCapOf)
Frequently asked questions
Is Algoma Steel halal?
Based on this screener's AAOIFI-style checks, Algoma Steel Group fails. The business gate fails because of the Roshel Algoma Defence Solutions joint venture formed in April 2026 with Roshel Inc., a Canadian-owned defence manufacturer of armoured vehicles, to develop domestic ballistic steel and related manufacturing capabilities in Canada. The debt gate also fails independently: about C$917M of interest-bearing debt is roughly 143% of the ~C$640M market cap, against a ~33% ceiling. This is a screening result, not investment advice or a religious ruling.
How much debt does Algoma Steel have relative to market cap?
About 143% - far over the ~33% ceiling. The June 30, 2026 balance sheet shows C$73.4M of bank indebtedness, C$495.0M of senior secured lien notes, and C$348.6M of governmental loans (current and long-term) - about C$917M of interest-bearing debt. Against a September 2026 market cap of roughly C$633-647M (about C$6.14 per share on the TSX), that is about 143%.
What is Algoma Steel's interest income to revenue ratio?
About 0.19% - it passes. Q2 2026 (three months ended June 30, 2026) finance income was C$0.5M on C$267.5M of revenue, well under the ~5% ceiling. Cash of C$62.6M is about 10% of market cap, also under the liquid-assets ceiling. Both are moot given the business-gate and debt-gate FAILs.
Does Algoma Steel have defence or military business?
Yes, at the company level: on April 7, 2026 Algoma announced Roshel Algoma Defence Solutions, a joint venture with Roshel Inc., a Canadian-owned defence manufacturer of armoured vehicles, expected to support the development of domestic ballistic steel and related manufacturing capabilities in Canada. The company also lists defence among the end-markets for its discrete plate steel. Steel products are commodity materials, but the explicit defence JV is a company-level non-compliant activity under this screener's business gate.
Do Zoya, Musaffa, or ShariaPortfolio rate Algoma Steel?
No public coverage was found as of September 2026: web searches surfaced no public Zoya page for the ASTL ticker, no Musaffa public page (the only Musaffa hit was for an unrelated company), and ShariaPortfolio publishes no public per-stock screening pages for it. The FAIL recorded here rests on Algoma's own disclosures.