Is Power Grid (POWERGRID) Halal?

NSE Utilities India $2.7T
✗ NOT HALAL
Confidence: 90/100
Power Grid (POWERGRID) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 48.3% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Power Grid operates in the Utilities sector.

Shariah Screening — 5 Standards

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 48.3%
/ 30%
2.4%
/ 30%
2.9%
/ 30%
3.78%
/ 5%
✗ NOT HALAL
DJIM 48.3%
/ 33%
2.4%
/ 33%
2.9%
/ 33%
3.78%
/ 5%
✗ NOT HALAL
MSCI 50.6%
/ 33%
2.5%
/ 33%
3.0%
/ 33%
3.78%
/ 5%
✗ NOT HALAL
S&P 48.3%
/ 33%
2.4%
/ 33%
2.9%
/ 33%
3.78%
/ 5%
✗ NOT HALAL
FTSE 50.6%
/ 33%
2.5%
/ 33%
3.0%
/ 50%
3.78%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
19.0
Forward: 16.0
EPS
$15.57
Dividend Yield
415.0%
Payout: 57.8%
P/B Ratio
2.8
EV/EBITDA
10.3
EV: $4.0T
Revenue
$440.7B
Growth: 10.3%
Beta
0.2
Low volatility

Profitability

Gross Margin 97.8%
Operating Margin 58.7%
Net Margin 32.8%

Cash Flow & Balance Sheet

Operating Cash Flow$362.2B
Free Cash Flow$120.9B
Total Debt$1.3T
Debt-to-Equity141.2
Total Assets$2.7T

Price & Trading

Last CloseINR 295.00
50-Day MAINR 288.31
200-Day MAINR 282.80
Avg Volume15.5M
Beta0.2
52-Week Range
INR 250.00
INR 322.00

About Power Grid (POWERGRID)

CEO
Rajiv Kumar
Employees
9,048
Sector
Utilities
Industry
Utilities - Regulated Electric
Country
India
Exchange
NSE
Market Cap
$2.7T
Currency
INR

Power Grid Corporation of India Limited, an electric power transmission utility, engages in the power transmission business in India and internationally. It operates in three segments: Transmission Services, Telecom Services, and Consultancy Services. As of 31 March 2025, the company owned and operated 180,195 circuit kilometers of transmission lines, and 282 substations with an aggregate transformation capacity of 551,961 mega volt amperes. It also provides telecom services that offer overhead optic fiber network services using optical ground wire on power transmission lines under the POWERTEL brand name, as well as lease lines, MPLS-VPN, data, infrastructure, and international long-distance services. In addition, it provides consultancy services to the transmission, distribution, and telecom sectors on system planning and feasibility studies; environmental and social studies; design and engineering; contract/procurement services; project management and construction supervision; capacity building; operation and maintenance; asset management; owners' and lenders' engineer services to utilities and funding institutions; preparation of grid code, tariff mechanisms, and market analysis; legal and technical advisory in power transmission; power system studies/DPR preparation; smart grid and EV charging; load despatch and communication; sub-transmission/distribution/rural electrification services; testing and quality assurance and inspection; energy efficiency; and preventive vigilance, as well as human resource development. Further, it operates electric vehicle charging stations; and engages in solar power generation, green hydrogen production, smart metering, and data centers. The company was formerly known as National Power Transmission Corporation Limited and changed its name to Power Grid Corporation of India Limited in October 1992. Power Grid Corporation of India Limited was incorporated in 1989 and is based in Gurugram, India.

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Frequently Asked Questions

Is Power Grid (POWERGRID) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Power Grid is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Power Grid's debt ratio?

Power Grid's debt ratio is 48.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 50.6%.

What are Power Grid's key financial metrics?

Power Grid has a market capitalization of $2.7T, trailing P/E ratio of 19.0, and revenue of $440.7B. The company maintains a gross margin of 97.8% and a net margin of 32.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.