Is Descartes Systems / DSG Halal?
The Descartes Systems Group Inc. (TSX: DSG; NASDAQ: DSGX) is a Waterloo-based logistics software company — its Global Logistics Network connects shippers, carriers, and freight forwarders with SaaS for trade compliance, customs, and transportation management. Debt-free, cash-rich, and profitable.
The two-gate Shariah screen
Every screener on this site runs the same two gates: first, the business must be halal (no conventional insurance, banking, alcohol, gambling, and the like); second, the financial ratios must clear (debt under roughly 33% of market cap, non-compliant income under roughly 5%).
Gate one: the business — PASS
Descartes sells logistics and supply-chain software — transportation management, customs compliance, global trade research, and e-commerce fulfilment tools delivered as a service. Software is a permissible business activity, and no haram revenue segment is disclosed. Gate one: PASS.
Gate two: the ratios — PASS
Debt-to-market-cap: 0% (ceiling ~33%) — PASS. Descartes is debt-free: US$401.1 million in cash at July 31, 2026, an undrawn US$350 million credit line, and no borrowings. Against a market cap of roughly CA$9.50 billion on September 28, 2026, there is no debt to measure — the cleanest balance sheet on the site.
Non-compliant income: ~1.7% (ceiling ~5%) — PASS. Fiscal Q2 2027 investment income was US$3.322 million against revenues of US$201.108 million — about 1.7%, under the screen. Interest expense was just US$0.24 million. Gate two: PASS.
What other screeners say
No verified current third-party rating was found for Descartes Systems on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The PASS rating here rests on this site's own screening methodology, not on a third-party endorsement.
The bottom line
This screener gives The Descartes Systems Group Inc. (TSX: DSG) a PASS. Fiscal Q2 2027 (quarter ended July 31, 2026, reported September 10, 2026) delivered record revenues of US$201.1 million (+12%), income from operations of US$65.5 million, net income of US$50.0 million (+32%), adjusted EBITDA of US$94.4 million (47% margin), and cash from operations of US$81.3 million. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
The purification angle: Descartes' investment income runs ~1.7% of revenue — small but real, and it grows with the cash balance. If you hold the shares, the purification calculator shows how to clean that portion.
Frequently asked questions
Is Descartes Systems stock halal?
This screener gives The Descartes Systems Group Inc. (TSX: DSG) a PASS. Logistics software clears the business-activity screen, and the ratio math clears: the company is debt-free with US$401.1 million in cash at July 31, 2026 — 0% debt-to-market-cap — and investment income of US$3.3 million against revenues of US$201.1 million, about 1.7%, under the ~5% screen.
What are Descartes Systems' debt and market-cap figures?
Descartes is debt-free: it reported US$401.1 million in cash at July 31, 2026 with an undrawn US$350 million line of credit and no borrowings. Against a market cap of roughly CA$9.50 billion on September 28, 2026, the debt-to-market-cap ratio is 0% — the cleanest balance sheet on this site.
Does Descartes Systems earn interest income?
Descartes reported investment income of US$3.322 million in fiscal Q2 2027 against revenues of US$201.108 million — about 1.7%, under the ~5% screen. Interest expense was just US$0.24 million. The large cash balance earns interest, but it stays well within the limit.
Do any third-party screeners agree with this screener?
No verified current third-party rating was found for Descartes Systems on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The PASS rating here rests on this site's own screening methodology, not on a third-party endorsement.
What could change Descartes Systems' halal screener?
A large debt-funded acquisition — Descartes grows partly by buying smaller logistics software firms — could introduce debt, or a much larger cash pile could push investment income toward the ~5% line. Neither is the case today. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.