Is Hydro One / H Halal?
Hydro One Limited (TSX: H) runs Ontario's biggest electricity grid — a perfectly permissible business. But the balance sheet kills it: roughly 65.5% debt-to-market-cap, nearly double the AAOIFI-style ceiling of ~33%.
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
Hydro One is Ontario's largest electricity transmission and distribution provider: 1.5 million customers, C$39.7 billion in assets at December 31, 2025, and annual revenues of C$9 billion in 2025. Regulated electricity delivery is a permissible business activity under AAOIFI-style screens. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-to-market-cap: ~65.5% (ceiling ~33%) — FAIL. The June 30, 2026 balance sheet shows C$19,503 million of long-term debt, C$425 million due within one year, and C$100 million of short-term notes payable — about C$20.03 billion of interest-bearing debt. Against a market cap of roughly C$30.57 billion on September 28, 2026, the ratio is about 65.5%. This is not a close call: regulated utilities fund massive capital programs with debt — Q2 2026 capital investments were C$812 million, and the company closed its first US$1.0 billion U.S. debt offering in the quarter — and that structural leverage is what sinks the screener. Interest-based income is not the deciding factor here, so no separate ratio is needed. Gate two: FAIL.
What other screeners say
No verified current rating was found for Hydro One on Zoya, Musaffa, or ShariaPortfolio, so no third-party position is documented here. The debt ratio alone decides this screener regardless.
The bottom line
This screener gives Hydro One Limited (TSX: H) a FAIL. The regulated-utility business is fine; the ~65.5% debt-to-market-cap ratio is not. Q2 2026 context: net income attributable to common shareholders of C$370 million (EPS C$0.62), and a quarterly dividend of C$0.3531 per share declared August 11, 2026, payable September 29, 2026. The screener would only flip with serious deleveraging or a much higher market cap. Snapshot dated September 28, 2026; re-checked quarterly after earnings.
The purification angle: purification only helps with dividends from passing companies. Hydro One fails this screen, so the question is moot here. For holdings that do pass, the purification calculator handles the dividend math.
Frequently asked questions
Is Hydro One stock halal?
This screener gives Hydro One (TSX: H) a FAIL. The regulated electricity transmission and distribution business clears gate one — utilities are not a prohibited activity. But the debt ratio fails hard: about C$20.03 billion of interest-bearing debt against about C$30.57 billion of market cap gives roughly 65.5%, far above the ~33% ceiling.
What are Hydro One's debt and market-cap figures?
Hydro One's June 30, 2026 balance sheet shows C$19,503 million of long-term debt, C$425 million of long-term debt due within one year, and C$100 million of short-term notes payable — about C$20.03 billion of interest-bearing debt. Against a market cap of roughly C$30.57 billion on September 28, 2026, the debt-to-market-cap ratio is about 65.5%, well above the ~33% AAOIFI ceiling.
Does Hydro One's business pass the Shariah screen?
Yes. Hydro One is Ontario's largest electricity transmission and distribution provider, serving 1.5 million customers with C$39.7 billion in assets at December 31, 2025. Regulated electricity delivery is a permissible business activity. The FAIL comes entirely from the debt ratio, not the business.
Do any third-party screeners agree with this screener?
No verified current rating was found for Hydro One on Zoya, Musaffa, or ShariaPortfolio, so no third-party position is documented here. The debt ratio alone decides this screener regardless.
What could change Hydro One's halal screener?
Deleveraging or a much higher market cap. Hydro One funds heavy capital spending with debt — Q2 2026 capital investments were C$812 million, and the company closed its first US$1.0 billion U.S. debt offering in the quarter. The screener would only flip if debt falls or equity value rises enough to bring the ratio under ~33%. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.