Is Groupe Dynamite (GRGD) halal?
Groupe Dynamite (TSX: GRGD), the women's fashion retailer behind the Dynamite and Garage banners, gets a PASS: the apparel business is clean, ~C$578M of total debt is only ~10% of market cap vs the ~33% ceiling, and finance income is ~0.4% of revenue.
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 — PASSED
Groupe Dynamite Inc. (TSX: GRGD), headquartered in Mont-Royal, Quebec, designs and sells women's apparel aimed mainly at Generation Z and Millennial shoppers through corporate stores and online in Canada, the United States, and the United Kingdom. Its two banners are Dynamite (tees, blouses, dresses, jeans, blazers, accessories) and Garage (denim, sweatsuits, activewear, swimwear). The company listed on the TSX on November 21, 2024. Q2 fiscal 2026 revenue was C$423.6 million, up 29.8% year over year, with net earnings of C$113.4 million (company Q2 fiscal 2026 results release). None of the standard AAOIFI prohibited business activities (conventional banking and insurance, alcohol, gambling, weapons, pork, adult entertainment) are part of Groupe Dynamite's operations — it is a clothing retailer — so the business-activity gate passes. Facts only, no fatwa.
Gate two: the ratios — PASSED
Total debt was about C$578 million: lease liabilities including the current portion of C$557.5 million at August 1, 2026 (company Q2 fiscal 2026 results release) plus long-term debt of C$20 million on the most recent balance sheet (interim financial statements at May 2, 2026). Against a market capitalization of about C$5.66 billion (Finnhub, September 2026), that is roughly 10% debt-to-market-cap — below the ~33% ceiling, so the debt gate passes. The company reports a net leverage ratio of 0.89x and 52-week adjusted EBITDA of C$592.8 million. Non-compliant income: finance income of C$5.375 million for FY2026 (the four quarters ended January 31, 2026, per the company's MD&A quarterly table) against FY2026 revenue of C$1,310.2 million is about 0.4% — below the ~5% ceiling. Cash of C$31.9 million is about 0.6% of market cap. All figures recomputed from the cited sources; Groupe Dynamite reports in Canadian dollars.
What other screeners say
At screening time (September 30, 2026), no current public Shariah rating for Groupe Dynamite (GRGD) was found on the Zoya, Musaffa, or ShariaPortfolio public pages — honestly reported as absent rather than invented. The PASS recorded here rests on the ratios computed from the company's own filings.
The bottom line
Groupe Dynamite (GRGD) is a PASS: the women's apparel retailer clears the business-activity gate, total debt of roughly C$578 million is about 10% of its market capitalization (well under the ~33% ceiling), and finance income of C$5.375 million is about 0.4% of FY2026 revenue. Investors who want ongoing comfort should re-check on fresh filings — especially if leverage rises materially or the share price falls sharply, since the market-cap denominator drives the debt ratio.
Sources
- Groupe Dynamite — Q2 fiscal 2026 results (official release, newswire.ca)
- Groupe Dynamite — Q1 fiscal 2027 interim financial statements (balance sheet, finance income)
- Groupe Dynamite — FY2026 MD&A (quarterly finance income and revenue table)
- Finnhub — Groupe Dynamite (GRGD) market data, market cap ~C$5.66B
Frequently asked questions
Is Groupe Dynamite (GRGD) halal?
Yes — Groupe Dynamite (GRGD) gets a PASS. Its women's apparel retail business (Dynamite and Garage banners) clears the activity gate, total debt of about C$578 million is roughly 10% of its ~C$5.66 billion market capitalization (versus the ~33% ceiling), and finance income of C$5.375 million is about 0.4% of FY2026 revenue (versus the ~5% ceiling). This is an educational screening, not a personal ruling — consult a qualified scholar.
What is Groupe Dynamite's debt-to-market-cap ratio?
About 10%: lease liabilities including the current portion of C$557.5 million at August 1, 2026 (company Q2 fiscal 2026 results release) plus long-term debt of C$20 million on the most recent balance sheet (May 2, 2026 interim financial statements) gives roughly C$578 million of total debt, against a market capitalization of about C$5.66 billion (Finnhub, September 2026). That is well below the ~33% ceiling. The company reports a net leverage ratio of 0.89x.
What does Groupe Dynamite sell, and where does it operate?
Groupe Dynamite Inc., headquartered in Mont-Royal, Quebec, designs and sells women's apparel mainly aimed at Generation Z and Millennial shoppers under two banners: Dynamite (tees, dresses, jeans, blazers, accessories) and Garage (denim, sweatsuits, activewear, swimwear). It sells through corporate stores and online in Canada, the United States, and the United Kingdom, and listed on the TSX in November 2024 (IPO November 21, 2024). Q2 fiscal 2026 revenue was C$423.6 million, up 29.8% year over year.
Do Zoya, Musaffa, or ShariaPortfolio rate Groupe Dynamite?
At screening time (September 30, 2026), no current public Shariah rating for Groupe Dynamite (GRGD) was found on the Zoya, Musaffa, or ShariaPortfolio public pages — honestly reported as absent rather than invented. The PASS here rests on the ratios computed from the company's own filings.
What could change this PASS?
Three things to watch: total debt rising above roughly 33% of market cap (for example through a leveraged acquisition or a steep share-price fall that shrinks the market-cap denominator), finance/non-compliant income rising above roughly 5% of revenue, or the business moving into prohibited activities. Screeners are re-checked on fresh filings; the figures on this page reflect the Q2 fiscal 2026 release (August 1, 2026) and September 2026 market data.