TSX Shariah screener · September 2026
Is Pet Valu (PET) Halal?
Pet Valu Holdings Ltd. · TSX: PET · Consumer Cyclical
The short answer
Pet Valu Holdings Ltd. (TSX: PET) is a FAIL. The business gate passes: it is a Canadian specialty retailer and wholesaler of pet food and pet supplies - about 877 stores across 10 provinces at Q2 2026 (257 corporate-owned, 613 franchised) - with no gambling, alcohol, adult-entertainment or conventional-banking segments. The income gate passes: interest income is disclosed at about 0.90% of revenue (FY2025: C$10,599k of interest income on C$1,175,556k of revenue; Q1 2026 about 0.89%). But the debt gate fails: total interest-bearing debt of ~C$806.7M (long-term debt C$289,224k plus lease liabilities C$517,433k, from the Q1 2026 filing) is roughly 68% of the ~C$1.19B market cap (C$17.80, September 30, 2026), against a ~33% ceiling. The FAIL is driven mainly by ~C$517M of store lease liabilities from the 877-store network rather than bank debt (about C$289M: C$355M term plus C$130M revolver, maturing 2028). Note the Q2 2026 interim filing (13 weeks ended July 4, 2026) is not yet indexed on SEDAR+, so the debt figure rests on the Q1 2026 and FY2025 filings - the FAIL is robust, with debt moving only C$289.0M to C$289.2M between year-end and Q1. No public Zoya, Musaffa or ShariaPortfolio rating for PET was found 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.
Gate 1 — Business activity: PASS
Pet Valu Holdings Ltd. is a Canadian specialty retailer and wholesaler of pet food and pet supplies: about 877 stores across 10 provinces at Q2 2026 (257 corporate-owned and 613 franchised at Q1). Head office: Markham, Ontario. Q2 2026: revenue C$290.7M (+3.6%), net income C$24.9M (+14.3%). No filing, release or company description discloses gambling, alcohol, tobacco, adult-entertainment or conventional banking operations. The business-activity gate passes. Facts only, no fatwa.
Gate 2 — Debt: FAIL
Total interest-bearing debt from the Q1 2026 filing is C$806,657k: long-term debt C$289,224k plus lease liabilities C$517,433k. The FY2025 figure was C$803.1M. Against a market capitalization of about C$1,185.0M (C$17.80, September 30, 2026), the debt-to-market-cap ratio is roughly 68% - against a ~33% ceiling. The FAIL is driven mainly by about C$517M of store lease liabilities from the 877-store network, not bank debt (about C$289M: C$355M term plus C$130M revolver, maturing 2028). The Q2 2026 interim filing is not yet indexed on SEDAR+, so the figure rests on the Q1 2026 and FY2025 filings; the FAIL is robust, with debt moving only C$289.0M to C$289.2M between year-end and Q1.
Gate 3 — Non-compliant income: PASS
Interest income is separately disclosed: FY2025 Note 19 shows C$10,394k of interest income on lease receivables plus C$205k of other interest income, totalling C$10,599k on revenue of C$1,175,556k - about 0.90% - under the ~5% ceiling (Q1 2026 was about 0.89%). Pet Valu is an intermediate lessor, booking about C$10.4M per year of finance income on franchise subleases. The income gate passes.
Key figures used
- Business: Canadian specialty pet food/supplies retailer and wholesaler — ~877 stores, 10 provinces — PASS
- Total debt: ~C$806.7M (Q1 2026 filing: long-term debt C$289,224k + lease liabilities C$517,433k; FY2025: C$803.1M)
- Market cap: ~C$1,185.0M (C$17.80, September 30, 2026)
- Debt ÷ market cap: ~68% vs ~33% ceiling — FAIL (driven by ~C$517M of store lease liabilities)
- Interest income ÷ revenue: ~0.90% (FY2025: C$10,599k ÷ C$1,175,556k; Q1 2026 ~0.89%) vs ~5% ceiling — PASS
- Material context: Q2 2026 revenue C$290.7M (+3.6%), net income C$24.9M (+14.3%); dividend C$0.13/quarter; active NCIB; no Zoya/Musaffa/ShariaPortfolio rating found
Frequently asked questions
Is Pet Valu (PET) halal?
Our September 2026 screen gives Pet Valu Holdings Ltd. (TSX: PET) a FAIL. The business gate passes: it is a Canadian specialty retailer and wholesaler of pet food and pet supplies - about 877 stores across 10 provinces - with no gambling, alcohol, adult-entertainment or banking segments. The income gate passes: disclosed interest income is about 0.90% of revenue. But the debt gate fails: total interest-bearing debt of about C$806.7M (C$289,224k long-term debt plus C$517,433k of lease liabilities, from the Q1 2026 filing) is roughly 68% of the ~C$1.19B market cap (C$17.80, September 30, 2026), against a ~33% ceiling. The FAIL is driven mainly by about C$517M of store lease liabilities, not bank debt (about C$289M, maturing 2028). No public Zoya, Musaffa or ShariaPortfolio rating for PET was found as of September 2026. This is a rules-based screening of published figures, not a religious ruling.
What business is Pet Valu in?
Pet Valu Holdings Ltd. is a Canadian specialty retailer and wholesaler of pet food and pet supplies: about 877 stores across 10 provinces at Q2 2026 (257 corporate-owned and 613 franchised at Q1), headquartered in Markham, Ontario. Q2 2026: revenue C$290.7M (+3.6%), net income C$24.9M (+14.3%). No filing, release or company description discloses gambling, alcohol, tobacco, adult-entertainment or conventional banking operations.
How leveraged is Pet Valu on the debt gate?
Too leveraged. Total interest-bearing debt from the Q1 2026 filing is C$806,657k: long-term debt C$289,224k plus lease liabilities C$517,433k (the FY2025 figure was C$803.1M). Against a market cap of about C$1,185.0M (C$17.80, September 30, 2026), the debt-to-market-cap ratio is roughly 68% versus a ~33% ceiling. The FAIL is driven mainly by about C$517M of store lease liabilities from the 877-store network, not bank debt (about C$289M: C$355M term plus C$130M revolver, maturing 2028).
How much interest income does Pet Valu earn?
About 0.90% of revenue. FY2025 Note 19 shows C$10,394k of interest income on lease receivables plus C$205k of other interest income, totalling C$10,599k on revenue of C$1,175,556k - under the ~5% ceiling (Q1 2026 was about 0.89%). Pet Valu is an intermediate lessor, booking about C$10.4M per year of finance income on franchise subleases. The figure is verifiable from the filing, not estimated.
What do Zoya, Musaffa or ShariaPortfolio say about PET?
No public Zoya, Musaffa or ShariaPortfolio rating for Pet Valu (PET) was found as of September 2026, so this screen relies entirely on the company's published financial statements and disclosures. (A MuslimXchange hit for "PET" was PETZ / TDH Holdings - a different company.) Other Canadian consumer names on this site - Aritzia, Dollarama, Canadian Tire, Canada Goose, Spin Master and others - are screened on the same business, debt and income basis.
Sources
- Pet Valu reports second quarter 2026 results (revenue C$290.7M, net income C$24.9M; ~877 stores)
- Pet Valu Q1 2026 interim financial statements (filed: long-term debt C$289,224k; lease liabilities C$517,433k)
- Pet Valu FY2025 annual financial statements, Note 19 (interest income C$10,599k; revenue C$1,175,556k)
Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.