POWL

Powell Industries, Inc.

HALAL — SCREEN DOES NOT PASSstock

Is POWL Halal?

Electrical switchgear and power-distribution equipment — generally permissible activity, but current asset-based liquidity and receivables screens fail.

What You Should Know

Powell Industries' March 31, 2026 Form 10-Q reports assets of $1,180.039 million, operating-lease liabilities of $1.955 million and no revolver borrowings, cash of $537.712 million, short-term investments of $7.177 million, receivables of $244.315 million and quarterly revenue of $296.615 million. Debt/assets is 0.17%, liquidity/assets is 46.18% and receivables plus cash/assets is 66.27%; the liquidity and receivables screens fail. Disclosed net interest income is $4.203 million (1.42% of revenue). No universal prohibited-revenue numerator is disclosed.

⚠️ Concerns

  • Liquidity/assets is 46.18%, above examined 33.333% limits
  • Receivables-plus-cash/assets is 66.27%, above examined FTSE and MSCI limits
  • Powell had no revolver borrowings at March 31, 2026, but letters of credit remain outstanding
  • Oil-and-gas, petrochemical, LNG, utility and data-center end markets require qualitative review
  • Disclosed net interest income is 1.42% of quarterly revenue; no fixed purification percentage asserted

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
0.17%Within limit
Below 33.333% under FTSE Yasaar

1.955 / 1,180.039

Cash + interest-bearing securities / assets
46.18%Above limit
Below 33.333% under FTSE Yasaar

544.889 / 1,180.039

Receivables + cash / assets
66.27%Above limit
Below 50% under FTSE Yasaar

782.027 / 1,180.039

Non-compliant income / revenue
1.42%Within limit
No more than 5% under FTSE Yasaar

4.203 / 296.615

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Liquidity/assets is 46.18% and receivables-plus-cash/assets is 66.27%, above the examined FTSE limits; debt/assets is 0.17% and disclosed interest income is 1.42%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Liquidity/assets is 46.18% and receivables-plus-cash/assets is 66.27%, above the examined MSCI limits; debt/assets is 0.17%.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Liquidity/assets is 46.18%, above the examined Malaysia 33% limit; this is a calculation against SAC ratios, not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored; the asset-based liquidity and receivables failures remain independently documented.

Business-activity disclosure

Powell manufactures custom electrical switchgear, power-distribution and control equipment. The core activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for its mixed industrial and energy end markets.

Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; end-market look-through is not converted into an estimate.

Purification

Powell reports $4.203 million of net interest income, but no scholar-specific purification percentage is asserted and the activity numerator remains incomplete.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Powell Industries' March 31, 2026 Form 10-Q.
  • No amounts were borrowed under the U.S. revolver at March 31, 2026. The debt input is $1.955 million of operating-lease liabilities.
  • Cash and cash equivalents are $537.712 million and short-term investments (time deposits) are $7.177 million; equity and rabbi-trust assets are excluded from interest-bearing securities.
  • Accounts receivable of $238.315 million plus $6.000 million of contract receivables produces $244.315 million used for the receivables input. First-quarter revenue is $296.615 million.
  • Powell reports $4.203 million of net interest income for the quarter (1.42% of revenue). No universal prohibited-revenue numerator is disclosed.
  • Electrical switchgear, power-distribution and control equipment are generally permissible, while oil-and-gas, petrochemical, utility and data-center end markets remain qualitative context.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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