The Short Answer
Nextracker stock (NXT) is qualitatively halal, but the current result is methodology-dependent. The latest filing is from Nextpower Inc., formerly Nextracker Inc., a leading provider of intelligent solar-tracker and software solutions for utility-scale solar power generation.
Solar-tracker manufacturing and the associated controls-and-software are unambiguously permissible clean-energy-equipment activities. The March 31, 2026 filing reports debt/assets of 1.30%, liquidity/assets of 26.88%, and receivables-plus-cash/assets of 37.12%; the MSCI-style receivables test fails while the FTSE and Malaysia-style known ratios pass.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.
52.858 / 4,073.212
1,094.976 / 4,073.212
1,512.019 / 4,073.212
31.2 / 3,559.39
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 1.30%, liquidity/assets is 26.88%, receivables-plus-cash/assets is 37.12% and disclosed interest income is 0.88%; the known FTSE ratios pass, but the activity numerator is incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 37.12%, above the examined MSCI 33.33% limit; debt/assets and liquidity/assets pass.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios pass the examined Malaysia limits; this is not an official classification and prohibited activity is not separately quantified.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the MSCI-style receivables failure remains independently documented.
Business-activity disclosure
Nextpower (formerly Nextracker) designs and manufactures solar-tracker systems, balance-of-system hardware and controls software. The core clean-energy-equipment activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for project and customer end uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; the screen does not infer one from project customers.
Purification
The filing discloses $31.2 million of 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 Nextpower's March 31, 2026 Form 10-K; the filing identifies the registrant as Nextpower Inc., formerly Nextracker Inc.
- The prior $150.0 million term loan was repaid during fiscal 2026. The remaining balance-sheet obligation used here is $52.858 million of operating-lease liabilities; the $1.0 billion revolving facility was undrawn apart from letters of credit.
- Cash and cash equivalents are $1,094.976 million. A $5.700 million equity-security balance is excluded from interest-bearing securities.
- Net accounts receivable is $417.043 million and fiscal-year revenue is $3,559.390 million.
- The filing's fiscal-year discussion reports $31.2 million of interest income; this disclosed amount is used as the income input (0.88% of revenue). No universal prohibited-revenue numerator is disclosed.
- Solar trackers, balance-of-system hardware and controls software are generally permissible, while utility-scale project financing and customer end use 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.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Nextracker's Business Activity
Nextracker designs, manufactures, and sells:
- Solar trackers: Single-axis trackers that orient photovoltaic panels toward the sun in utility-scale and ground-mounted solar plants
- Balance-of-system hardware: Foundations and structural components for solar installations
- Software: TrueCapture and NX Navigator control-and-optimization software
These are general-purpose renewable-energy-equipment businesses — manufacturing physical clean-energy hardware and the software that runs it. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage Profile
The prior $150.0 million term loan was repaid during fiscal 2026. The filing reports $52.858 million of operating-lease liabilities against $4,073.212 million of assets (1.30%); a licensed market-cap denominator is not stored in this screen.
2. End-Market Look-Through
Solar-tracker products are sold into utility-scale projects developed by a range of independent power producers and developers. Under standard methodology, the relevant classification is general-purpose renewable-energy-equipment manufacturing rather than the look-through end-customer mix.
3. Minor Interest Income
The filing reports $31.2 million of interest income for fiscal 2026 (0.88% of revenue). No fixed purification percentage is invented; investors should follow their chosen scholar or methodology.
Filing-Based Ratios (March 31, 2026)
Based on the latest Nextpower (formerly Nextracker) Form 10-K:
- Debt / assets: 1.30%, below the examined 33.333% limit.
- Cash + interest-bearing securities / assets: 26.88%, below the examined liquidity limit.
- Receivables + cash / assets: 37.12%, above the examined MSCI 33.33% limit but below the examined FTSE limit.
- Disclosed interest income / revenue: 0.88%.
- Prohibited-activity revenue: Not separately disclosed; project and customer end use remains qualitative context.
Methodology Interpretation
The core business is generally permissible and the FTSE/Malaysia-style known ratios pass, but the MSCI-style receivables-plus-cash ratio fails at 37.12%. The result is methodology-dependent, not a claim about any external agency or a universal scholarly ruling.
Bottom Line
Nextracker (NXT) is qualitatively halal but methodology-dependent on this current screen. The core business — solar-tracker systems and software — is unambiguously permissible at the activity level, while the MSCI-style receivables test is the binding quantitative concern.
For Muslim investors seeking clean-energy and electrification exposure, NXT sits alongside other halal-screened names like Enphase (ENPH) and First Solar (FSLR).
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