NYSE Shariah screener · October 2026

Is British American Tobacco p.l.c. (BTI) Halal?

FAIL

British American Tobacco p.l.c. · NYSE: BTI · Consumer Staples

The short answer

No - British American Tobacco p.l.c. (BTI) fails this Shariah stock screen. Its core business is tobacco and nicotine products: for FY2025 (year ended 31 December 2025; audited statements in the Form 20-F filed with the SEC on 13 February 2026) the company reported revenue of £25,610m, of which combustibles were £20,201m (about 79%), and its New Categories - the Vuse vapour brand, glo heated products, and Velo modern oral nicotine pouches - are also nicotine/tobacco products. Borrowings excluding lease liabilities were £34,541m at 31 December 2025 (lease liabilities of £529m reported separately), which is about 51.1% of the ~$90.87B market cap ($53.19 latest quote, October 2, 2026) at the company's own $1.345/£1 closing rate - above the ~33% ceiling. 'Finance income' of £214m is about 0.84% of revenue, below the 5% ceiling. Zoya rates BTI not Shariah-compliant and Musaffa classifies it not halal (October 2026); no ShariaPortfolio coverage was found. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

Gate 1 — Business activity: FAIL

British American Tobacco p.l.c. (NYSE: BTI, an ADR) describes itself as 'a leading, multi-category consumer goods business' whose Strategic Portfolio is made up of global cigarette brands (Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans) and smokeless nicotine and tobacco products: the Vuse vapour brand, glo heated products, and Velo modern oral nicotine pouches. For FY2025 the company reported revenue of £25,610m, of which combustibles were £20,201m (about 79%); the New Categories (vapour, heated products, modern oral) are also nicotine/tobacco products. Tobacco is the core business - a haram segment - not a peripheral activity. Gate 1 fails. Facts only.

Gate 2 — Debt and cash: FAIL

Per BAT's FY2025 preliminary announcement (year ended 31 December 2025; audited statements in the Form 20-F filed with the SEC on 13 February 2026), borrowings excluding lease liabilities were £34,541m at 31 December 2025 (lease liabilities of £529m are reported separately and excluded). At the company's own reported closing rate of $1.345/£1 at 31 December 2025, that is roughly $46.5B. Against a market cap of about $90.87B ($53.19 latest quote, October 2, 2026), debt / market cap is about 51.1%, above the ~33% ceiling. Cash and cash equivalents of £3,827m (about $5.1B) are roughly 5.7% of market cap. Gate 2 fails. Facts only.

Gate 3 — Non-compliant income: PASS

BAT's FY2025 preliminary announcement discloses 'Finance income' of £214m as a separate line (2024: £251m), described in the adjusted split as 'Interest and dividend income'. Against reported revenue of £25,610m, that is about 0.84% of revenue, below the 5% non-compliant income ceiling. Gate 3 passes on the filing's disclosed line. Facts only.

Key figures used

Business: 'leading, multi-category consumer goods business' - global cigarette brands (Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans) + smokeless nicotine/tobacco (Vuse, glo, Velo); combustibles £20,201m ≈ 79% of revenue - tobacco is the CORE business
Debt: £34,541m borrowings excluding lease liabilities (lease liabilities £529m reported separately, excluded) at 31 Dec 2025 ≈ $46.5B at $1.345/£1 - about 51.1% of ~$90.87B market cap, over the ~33% ceiling
Cash: £3,827m cash and cash equivalents at 31 Dec 2025, about 5.7% of market cap
Interest income: £214m ('Finance income', separately disclosed; 'Interest and dividend income' in adjusted split) vs revenue £25,610m - about 0.84% of revenue, under the 5% ceiling
Market cap: ~$90.87B ($53.19 latest quote, October 2, 2026); FY2025 preliminary announcement (year ended Dec 31, 2025); audited statements in Form 20-F filed with SEC 13 Feb 2026; reported in GBP (ratios currency-neutral)
Zoya: not Shariah-compliant (quotes same FY2025 figures: £214m = 0.84% of £25,610m); Musaffa: not halal (October 2026, AAOIFI); ShariaPortfolio: no coverage found
Result: FAIL on gates 1 (core tobacco business) and 2 (debt 51.1% of market cap); gate 3 passes

Frequently asked questions

What does British American Tobacco do?

British American Tobacco p.l.c. (NYSE: BTI, an ADR of the British company) describes itself as 'a leading, multi-category consumer goods business'. Its Strategic Portfolio is made up of global cigarette brands - including Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans - plus smokeless nicotine and tobacco products: the Vuse vapour brand, glo heated products, and Velo modern oral nicotine pouches. For FY2025 the company reported revenue of £25,610m, of which combustibles were £20,201m (about 79%); New Categories (vapour, heated products, modern oral) were £3,621m. All of these are tobacco or nicotine products, which is the company's core business.

Why does British American Tobacco fail this Shariah stock screen?

British American Tobacco fails this Shariah stock screen on gate 1. Its core business is tobacco and nicotine products: combustibles generated £20,201m of the £25,610m FY2025 revenue (about 79%), and the New Categories (Vuse, glo, Velo) are also nicotine/tobacco products - so a haram segment is the core business, not a peripheral one. Gate 2 also fails: borrowings of £34,541m (excluding £529m lease liabilities) convert to roughly $46.5B at the company's own 31-Dec-2025 closing rate of $1.345/£1, which is about 51.1% of the ~$90.87B market cap ($53.19, October 2, 2026) - above the ~33% ceiling. Gate 3 passes: finance income of £214m is about 0.84% of revenue, below the 5% ceiling. Zoya covers BTI and rates it not Shariah-compliant; Musaffa classifies it not halal (October 2026). This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

What is British American Tobacco's interest-bearing debt ratio?

Per BAT's FY2025 preliminary announcement (year ended 31 December 2025; audited statements filed in the Form 20-F on 13 February 2026), borrowings excluding lease liabilities were £34,541m at 31 December 2025 (lease liabilities of £529m are reported separately and excluded). Converted at the company's own reported closing rate of $1.345/£1 at 31 December 2025, that is roughly $46.5B. Against a market cap of about $90.87B ($53.19 latest quote, October 2, 2026), debt / market cap is about 51.1% - above the ~33% ceiling. Gate 2 fails. Facts only.

What is British American Tobacco's non-compliant income ratio?

BAT's FY2025 preliminary announcement discloses 'Finance income' of £214m as a separate line (2024: £251m), described in the adjusted split as 'Interest and dividend income'. Against reported revenue of £25,610m, that is about 0.84% of revenue, below the 5% non-compliant income ceiling. Gate 3 passes on the filing's disclosed line. Note: this screen still fails overall because tobacco is the core business (gate 1) and the debt ratio exceeds the ceiling (gate 2).

Do Zoya, Musaffa, or ShariaPortfolio cover British American Tobacco?

Zoya covers BTI and rates it not Shariah-compliant, citing the same FY2025 figures (revenue £25,610m, interest income £214m = 0.84%) - zoya.finance/stocks/bti. Musaffa covers BTI and classifies it as not halal as of October 2026 (AAOIFI methodology) - musaffa.com/stock/BTI/. No ShariaPortfolio screening page or rating for BTI was found - reported as absent, not invented. This page applies the screen directly from BAT's own published financial statements and reports these positions honestly.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).