TSX Shariah screener · October 2026

Is K-Bro Linen Inc. (KBL) Halal?

FAIL

K-Bro Linen Inc. · TSX: KBL · Industrials

The short answer

K-Bro Linen Inc. (TSX: KBL) is a FAIL in our October 2026 screen. The business gate passes: K-Bro provides laundry and linen services to healthcare and hospitality customers - a permissible segment. But the debt gate fails: interest-bearing debt of about C$235.3M at March 31, 2026 is ≈43.1% of the ~C$545.3M market cap, over the ~33% ceiling (the company’s Q2 2026 net-debt figure of C$213.5M is still ~39.2% even net of cash). Interest income is not separately disclosed, so the income gate is unverifiable - it does not change the FAIL.

Gate 1 — Business activity: PASS

K-Bro Linen Inc., based in Edmonton, Alberta, provides laundry and linen services to healthcare institutions and hospitality (hotel) customers in Canada and the United Kingdom. Q2 2026 revenue was C$150.4M (+33% year over year): healthcare C$86.6M and hospitality C$63.7M, boosted by the June 2025 acquisition of Stellar Mayan in the UK. The company pays a quarterly dividend (C$0.300 per share declared in Q2 2026) and repurchased 58,039 shares under its NCIB in the quarter. Commercial laundry services are a permissible business segment. Gate 1 passes.

Gate 2 — Debt and cash: FAIL

Interest-bearing debt at March 31, 2026 (Q1 2026) was about C$235.3M — long-term debt of C$226.0M plus the current portion of C$9.2M, per the Q1 2026 interim statements. Against a market cap of ~C$545.3M (C$41.32, October 1, 2026) that is about 43.1% — over the ~33% ceiling. The company’s own Q2 2026 release reports debt net of cash of C$213.5M — about 39.2% of market cap even after subtracting cash. (Lease liabilities of ~C$80.7M are excluded per the screen’s methodology.) Gate 2 fails.

Gate 3 — Non-compliant income: UNVERIFIABLE

Interest income is not separately disclosed in K-Bro’s financial statements — the filings disclose interest paid (C$16.2M in FY2025) but carry no interest income line, so the ratio cannot be computed from published figures. The income gate is unverifiable; it does not change the result, since the debt gate already fails on verifiable figures.

Key figures used

Q2 2026 revenue C$150.4M (+33% y/y): healthcare C$86.6M, hospitality C$63.7M; Stellar Mayan (UK) acquisition closed June 2025 (reported Aug 4, 2026).
Q1 2026 interest-bearing debt ~C$235.3M (long-term C$226.0M + current C$9.2M); cash C$30.9M.
Q2 2026 debt net of cash C$213.5M (company figure, Aug 4, 2026 release).
Market cap ~C$545.3M (C$41.32, October 1, 2026, TSX).
Debt-to-market-cap ≈43.1% (gross, Q1) / ≈39.2% (net, Q2) vs ~33% ceiling — FAIL.
FY2025 revenue C$506.78M; interest paid C$16.2M; interest income not disclosed.
Quarterly dividend C$0.300/share; 58,039 shares repurchased in Q2 2026.

Frequently asked questions

Is K-Bro Linen (KBL) halal?

Our October 2026 screen gives K-Bro Linen (KBL) a FAIL. The business gate passes: K-Bro provides laundry and linen services to healthcare and hospitality customers - a permissible service segment. The debt gate fails: interest-bearing debt of about C$235.3M at March 31, 2026 is about 43.1% of the ~C$545.3M market cap, over the ~33% ceiling (the company's own Q2 2026 net-debt figure of C$213.5M is still ~39.2% of market cap even net of cash). Interest income is not separately disclosed in the company's filings, so the income gate cannot be verified - but the debt gate alone determines the FAIL.

What business is K-Bro Linen in?

K-Bro Linen, based in Edmonton, Alberta, is a laundry and linen services provider serving healthcare institutions and hospitality customers (hotels) in Canada and the United Kingdom. Q2 2026 revenue was C$150.4M (+33% year over year): healthcare revenue of C$86.6M and hospitality revenue of C$63.7M, boosted by the June 2025 acquisition of Stellar Mayan in the UK. The company pays a quarterly dividend (C$0.300 per share in Q2 2026). Commercial laundry services are a permissible business segment.

Why does K-Bro Linen fail the debt gate?

Interest-bearing debt at March 31, 2026 (Q1 2026) was about C$235.3M - long-term debt of C$226.0M plus the current portion of C$9.2M, per the Q1 2026 interim statements. Against a market cap of ~C$545.3M (C$41.32, October 1, 2026), that is about 43.1% - over the ~33% ceiling. The company's Q2 2026 release reports debt net of cash of C$213.5M - about 39.2% of market cap even after subtracting cash. (Lease liabilities of ~C$80.7M are excluded per the screen's methodology.) The debt gate fails.

Is K-Bro Linen's income compliant?

Interest income is not separately disclosed in K-Bro's financial statements - the filings disclose interest paid (C$16.2M in FY2025) but no interest income line, so the ratio cannot be computed from published figures. The income gate is unverifiable. It does not change the result: the debt gate already fails on verifiable figures.

What do Musaffa, Zoya or ShariaPortfolio say about K-Bro Linen?

No Zoya, Musaffa, or ShariaPortfolio rating was found for K-Bro Linen in public search - none of the three named providers surfaced coverage, so no rating is claimed here. This page's FAIL result is based on the company's own filings and market data.

Sources

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.