Is Tata Motors Ltd Stock Halal or Haram? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! it has undergone a Shariah compliance screening based on key business activity and financial information available publicly.
In this article, we provide a detailed breakdown of Tata Motors Ltd business operations, financials, and compliance with Shariah screening guidelines. Whether you’re an ethical investor or exploring halal investment opportunities, this analysis will help you make an informed decision.
Is Tata Motors Ltd Stock Halal and Shariah Compliant?
Recently, it was reported that Tata Motors, through its subsidiary Jaguar Land Rover, supplied Land Rover Defender vehicles to the Israeli military. These vehicles are further modified by the Israeli company MDT Armor into the “MDT David,” an armored unit used for patrol and intelligence operations.
Considering the company’s indirect involvement in military activities in a conflict region, its stock status is no longer classified as halal and has therefore been re-categorized as doubtful for ethical investors.
For transparency and verification, you can review the latest annual report of Tata Motors Ltd from here: Tata Motors Ltd Annual Report
Shariah Compliance Analysis of Tata Motors Ltd Stock
❌ DOUBTFUL
| Criteria | Value | Status |
| Business Activity | Auto Mobile | ❌ DOUBTFUL |
| Impermissible Income to Total Revenue | 4.44% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 28.94% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 55.24% | ✅ PASS |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Also Read : What to do When a Halal Stock Turns Non-Halal? Halal Investors Guide (2025)
Business Overview of Tata Motors Ltd
Tata Motors Ltd, a subsidiary of the Tata Group, is one of India’s largest automobile manufacturers. Founded in 1945, the company operates in diverse automotive segments, including passenger vehicles, commercial vehicles, and electric mobility. It has a strong presence in domestic and international markets, with subsidiaries like Jaguar Land Rover (JLR) expanding its global footprint.
Tata Motors is known for innovation, safety, and sustainability, offering electric vehicles (EVs) under the Tata Passenger Electric Mobility brand. The company leverages advanced technology and strategic partnerships to enhance its product portfolio. With a commitment to green mobility and digital transformation, Tata Motors continues to be a leader in India’s automotive industry.
Conclusion
Due to this reason, Tata Motors Ltd has now been moved to the Doubtful and Non-Shariah compliant category as per the Shariah screening process. Muslim investors are advised to be cautious regarding this stock. (Allah Knows Best)
However, investors are advised to conduct their own due diligence and periodically review the company’s financial reports for any changes in compliance.
Disclaimer: The information on Halalfinance.co.in is for educational and informational purposes only and not financial advice. We are not liable for any investment decisions you make; always consult a financial advisor before investing.
Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.
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