Is Roots (ROOT) halal?
Roots Corporation (TSX: ROOT) sells apparel, footwear, leather goods, and accessories — no haram business segment, so the business gate passes. But interest-bearing debt of ~C$106.0 million (including lease liabilities) is about 66.1% of the ~C$160.3 million market cap (over the ~33% ceiling). FY2025 interest revenue of ~C$0.252 million is about 0.09% of revenue (under the ~5% ceiling). This screener is a FAIL.
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 — passes
Roots Corporation, founded in 1973 and headquartered in Toronto, designs, markets, and sells apparel, footwear, leather goods, and accessories under the Roots brand in Canada and internationally. It reports two segments: Direct-to-Consumer (corporate retail stores and ecommerce) and Partners & Other (wholesale to international operating partners, licensees, and wholesale customers). It operates 100+ locations in Canada plus two US stores. Q2 2026 (13 weeks ended August 1, 2026) total sales were C$49.544 million. Leather goods (mostly cow leather) are not haram per classical fiqh, and no alcohol, tobacco, gambling, conventional finance, or other prohibited segments were found. The business gate passes.
Gate two: the ratios — debt fails
At May 2, 2026 (Q1 2026 interim statements, the most recent balance sheet): current long-term debt of C$5.338 million + long-term debt of C$26.762 million + current lease liabilities of C$21.403 million + long-term lease liabilities of C$52.521 million = ~C$106.0 million of interest-bearing debt including leases (~C$32.1 million excluding leases). With 39,196,165 shares outstanding at C$4.09 (September 29, 2026), the market cap is about C$160.3 million — debt including leases is about 66.1% of market cap (about 20.0% excluding leases), over the ~33% ceiling. Per this site's consistent include-leases methodology, the debt gate fails; the FAIL is driven by lease liabilities. Interest revenue of ~C$0.252 million (FY2025 audited) is about 0.09% of FY2025 revenue — under the ~5% ceiling. Timeliness caveat: on August 20, 2026, Roots entered an arrangement agreement under which Marquee Brands (via JM&A Design and Development Inc.) will acquire all shares at C$4.10 cash per share (~C$161M equity value); the board unanimously recommends it, a shareholder vote is expected in October 2026, and TSX delisting is expected in Q4 2026 on completion. This screener may become stale within weeks.
What other screeners say
No coverage pages for ROOT were found on Zoya, Musaffa, or ShariaPortfolio in targeted searches as of September 2026. This screener is based on Roots' own filings.
The bottom line
This screener gives Roots Corporation (TSX: ROOT) a FAIL. A clean retail business with negligible interest income, but debt including leases at about 66.1% of market cap is over the ~33% ceiling — and a pending C$4.10/share going-private deal means this stock may be delisted from the TSX in Q4 2026. Consult a qualified scholar. Snapshot dated September 29, 2026; re-checked quarterly after earnings.
Sources
- Q2 2026 results press release (Roots, Sept 11, 2026)
- Q1 2026 interim financial statements (Roots, Jun 12, 2026)
- Roots–Marquee Brands going-private deal (Aug 20, 2026)
Frequently asked questions
Is Roots halal?
This screener gives it a FAIL. Roots Corporation (TSX: ROOT) designs and sells apparel, footwear, leather goods, and accessories — no haram business segment, so the business gate passes. But interest-bearing debt of ~C$106.0 million (including lease liabilities) is about 66.1% of the ~C$160.3 million market cap (over the ~33% ceiling) — debt excluding leases would be ~20.0%, so the FAIL is driven by lease liabilities. FY2025 interest revenue of ~C$0.252 million is about 0.09% of revenue (under the ~5% ceiling). No coverage was found from Zoya, Musaffa, or ShariaPortfolio. Note: Roots has a pending C$4.10/share going-private arrangement (announced August 20, 2026), with TSX delisting expected in Q4 2026 — this screener may become stale. Consult a qualified scholar.
What does Roots do?
Roots Corporation, founded in 1973 and headquartered in Toronto, designs, markets, and sells apparel, footwear, leather goods, and accessories under the Roots brand in Canada and internationally. It reports two segments: Direct-to-Consumer (corporate retail stores and ecommerce) and Partners & Other (wholesale to international operating partners, licensees, and wholesale customers). It operates 100+ locations in Canada plus two US stores. Q2 2026 (13 weeks ended August 1, 2026) total sales were C$49.544 million. Leather goods (mostly cow leather) are not haram per classical fiqh, and no alcohol, tobacco, gambling, conventional finance, or other prohibited segments were found.
What are Roots' debt and market-cap figures?
At May 2, 2026 (Q1 2026 interim statements, the most recent balance sheet): current long-term debt C$5.338 million + long-term debt C$26.762 million + current lease liabilities C$21.403 million + long-term lease liabilities C$52.521 million = ~C$106.0 million of interest-bearing debt including leases (~C$32.1 million excluding leases). Cash was C$8.652 million. With 39,196,165 shares outstanding at C$4.09 (September 29, 2026), market cap is about C$160.3 million — debt including leases is about 66.1% of market cap (about 20.0% excluding leases). Per this site's consistent include-leases methodology, the debt gate fails.
What do Zoya, Musaffa, and ShariaPortfolio say about ROOT?
No coverage pages for ROOT were found on Zoya, Musaffa, or ShariaPortfolio in targeted searches as of September 2026. This screener is based on Roots' own filings, not on a third-party rating.
What is the purification amount for Roots' dividend?
Roots has declared dividends in past periods; use the purification calculator with the FY2025 audited interest-revenue figure of ~C$0.252 million as the non-compliant-income input. Note that this stock fails the Shariah screen on the debt ratio, so purification arithmetic does not apply in the usual sense — and a pending going-private deal (C$4.10/share, delisting expected Q4 2026) may remove the dividend altogether.