TSX Shariah screener · October 2026
Is DAVIDsTEA Inc. (DTEA) Halal?
DAVIDsTEA Inc. · TSXV: DTEA · Consumer Discretionary
The short answer
No — DAVIDsTEA (DTEA) provisionally fails this Shariah stock screen on the debt gate. Its specialty tea retail business is permissible and its revenue-linked facility was fully repaid in Q2 FY2026, but debt — including IFRS 16 lease liabilities, which bear interest and count as debt under this screen's published convention — of about C$11.38M is about 36.1% of its C$31.56M market cap, over the ~33% ceiling. This is borderline: the latest retrievable balance sheet is from May 2, 2026 (the Q2 FY2026 balance sheet at August 1, 2026 was not retrievable), and an estimate at August 1 is about C$10.5M ≈ 33.3% — at or above the ceiling either way. No Zoya, Musaffa, or ShariaPortfolio rating was found for this ticker — honestly reported as absent, not invented.
Gate 1 — Business activity: PASS
DAVIDsTEA Inc. (TSXV:DTEA) is a specialty tea retailer (e-commerce, 20+ company-owned stores, wholesale). Its Nasdaq delisting was April 2023 only; the TSXV listing is current. No alcohol, pork, gambling, conventional interest-based lending, tobacco, cannabis, weapons, or adult-entertainment lines were disclosed. Gate 1 passes. Facts only.
Gate 2 — Debt and cash: FAIL
Interest-bearing borrowings are C$0 — the revenue-linked financing facility was fully repaid in Q2 FY2026. But IFRS 16 lease liabilities bear interest (the Q1 FY2026 FS shows 'Interest on lease liabilities' of $174K) and count as debt under this screen's published convention. Lease liabilities of C$10.964M (May 2, 2026) plus C$0.417M revenue-linked advances = about C$11.38M — about 36.1% of the C$31.56M market cap (C$1.04, October 1, 2026), over the ~33% ceiling. This is borderline: the Q2 FY2026 balance sheet (August 1, 2026) was not retrievable, and an estimate at that date is about C$10.5M ≈ 33.3% — at or above the ceiling either way. Cash of C$10.233M is about 32.4% of market cap, just under its ceiling. Gate 2 fails. Facts only.
Gate 3 — Non-compliant income: PASS
Q2 FY2026 (quarter ended August 1, 2026) 'finance income' of C$43K was separately disclosed, against sales of C$11.511M — about 0.37%, under the ~5% ceiling. Gate 3 passes; the debt-gate failure is decisive. Facts only.
Key figures used
- Debt: ~C$11.38M (C$10.964M IFRS 16 lease liabilities at May 2, 2026 + C$0.417M advances) ≈ 36.1% of market cap — borderline FAIL vs ~33%
- Market cap: C$31.56M (C$1.04, Oct 1, 2026); interest-bearing borrowings C$0 (revenue-linked facility fully repaid Q2 FY2026)
- Caveat: Q2 FY2026 balance sheet (Aug 1, 2026) not retrievable; estimated ~C$10.5M ≈ 33.3% — at/above ceiling either way
- Cash: C$10.233M ≈ 32.4% of market cap (just under ceiling); Q2 FY2026 sales C$11.511M
- Finance income: C$43K separately disclosed → ~0.37% (PASS, moot)
- Business: specialty tea retail (e-commerce, 20+ stores, wholesale); Nasdaq-delisted Apr 2023, TSXV-only since — no haram segments
Frequently asked questions
Is DAVIDsTEA (DTEA) halal?
No — DAVIDsTEA provisionally fails this Shariah stock screen on the debt gate. Its specialty tea retail business is permissible and its revenue-linked facility was fully repaid in Q2 FY2026, but debt — including IFRS 16 lease liabilities, which bear interest and count as debt under this screen's published convention — of about C$11.38M is about 36.1% of its C$31.56M market cap, over the ~33% ceiling. This is borderline: the latest retrievable balance sheet is from May 2, 2026, and an estimate at August 1, 2026 is about C$10.5M ≈ 33.3% — at or above the ceiling either way. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is DAVIDsTEA's debt-to-market-cap ratio?
About 36.1% on the latest retrievable balance sheet. Interest-bearing borrowings are C$0 (the revenue-linked facility was fully repaid in Q2 FY2026), but IFRS 16 lease liabilities of C$10.964M (May 2, 2026) plus C$0.417M advances = about C$11.38M, against a market cap of roughly C$31.56M (C$1.04, October 1, 2026) — over the ~33% ceiling. Borderline: estimated about 33.3% at August 1, 2026.
What does DAVIDsTEA do?
DAVIDsTEA Inc. (TSXV:DTEA) is a specialty tea retailer (e-commerce, 20+ company-owned stores, wholesale). Its Nasdaq delisting was April 2023 only; the TSXV listing is current.
How much finance income does DAVIDsTEA earn relative to revenue?
Q2 FY2026 (quarter ended August 1, 2026) 'finance income' of C$43K was separately disclosed, against sales of C$11.511M — about 0.37%, under the ~5% ceiling. The debt-gate failure is decisive.
Where can I find more consumer discretionary stock screeners?
See halal-stock-verdicts.html for the full list of stock screeners, including the other consumer discretionary-sector entries.
Sources
- DAVIDsTEA — Q2 FY2026 results (Sep 22, 2026): revenue-linked facility fully repaid; Q2 sales C$11.511M
- Finnhub — DTEA.V quote (C$1.04, Oct 1, 2026)
Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.