POWL
Powell Industries, Inc.
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.
1.955 / 1,180.039
544.889 / 1,180.039
782.027 / 1,180.039
4.203 / 296.615
- 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%.
- 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%.
- 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.
- 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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