Is TransAlta / TA Halal?
TransAlta Corporation (TSX: TA) is a Calgary-based independent power producer with hydro, wind, solar, and gas-fired generation across Canada, the United States, and Australia. Power generation clears gate one, but ~82.2% debt-and-leases-to-market-cap is far over the ~33% ceiling — a FAIL, so it gets re-checked every quarter.
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
TransAlta generates and sells electricity — hydro, wind, solar, and gas-fired plants, plus an energy-marketing desk that optimizes the physical power it produces. Electricity generation is a permissible business activity under AAOIFI-style screens, and no haram revenue segment is disclosed. Gate one: PASS.
Gate two: the ratios — FAIL
Debt-and-leases-to-market-cap: ~82.2% (ceiling ~33%) — FAIL. At June 30, 2026, TransAlta reported long-term debt of CA$3,158 million plus a current portion of CA$933 million, and lease liabilities of CA$145 million (non-current) plus CA$3 million (current) — about CA$4,239 million in total when leases are included, consistent with the other screeners on this site. Against a market cap of roughly CA$5.16 billion at the CA$16.80 close on September 28, 2026, the ratio is about 82.2% — far over the ~33% ceiling.
Non-compliant income: net payer of interest — PASS (not binding). TransAlta does not separately disclose interest income; its 2026 outlook guides net interest expense of CA$240–260 million, and interest expense was CA$347 million for full-year 2025 — the income gate is not the binding constraint. Gate two: FAIL (debt).
What other screeners say
No verified current third-party rating was found for TransAlta on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL screener here rests on this site's own screening methodology, not on a third-party endorsement.
The bottom line
This screener gives TransAlta Corporation (TSX: TA) a FAIL. Q2 2026 (reported July 31, 2026) delivered revenues of CA$487 million, net earnings of CA$35 million (CA$0.12 per share), adjusted EBITDA of CA$291 million, and free cash flow of CA$143 million (CA$0.47 per share). In June 2026 the company raised CA$350 million in a bought-deal equity offering at CA$19.20 per share to fund the cash portion of the US$1 billion Mountain Peak Power / Canyon Peak Power acquisition (assuming US$750 million of project debt), targeted to close in early Q4 2026. Snapshot dated September 28, 2026; re-checked quarterly after earnings — the pending acquisition adds leverage, so the debt gate stays firmly closed for now.
The purification angle: TransAlta is a net payer of interest with no separately disclosed interest income, so dividend purification math is minimal — but if you want to run the numbers on any dividend, the purification calculator is here.
Frequently asked questions
Is TransAlta stock halal?
This screener gives TransAlta Corporation (TSX: TA) a FAIL. Power generation clears the business-activity screen, but the ratio math fails: about CA$4,239 million of debt plus lease liabilities at June 30, 2026 (CA$3,158M long-term debt + CA$933M current portion + CA$145M non-current leases + CA$3M current leases) against a market cap of about CA$5.16 billion — roughly 82.2%, far over the ~33% ceiling. The company is a net payer of interest, so the income gate is not the binding constraint — the debt gate fails first.
What are TransAlta's debt and market-cap figures?
TransAlta reported long-term debt of CA$3,158 million plus a current portion of CA$933 million, and lease liabilities of CA$145 million non-current plus CA$3 million current, at June 30, 2026 — about CA$4,239 million in total with leases included. Against a market cap of roughly CA$5.16 billion at the CA$16.80 close on September 28, 2026, the debt-and-leases-to-market-cap ratio is about 82.2% — over the ~33% AAOIFI ceiling, measured with leases included, consistent with the other screeners on this site.
Does TransAlta earn interest income?
TransAlta does not separately disclose interest income in its condensed interim statements. It is a net payer of interest: 2026 guidance puts net interest expense at CA$240–260 million, and interest expense was CA$347 million for full-year 2025. With no material interest income, the ~5% non-compliant-income screen is not the binding constraint here — the debt gate fails first.
Do any third-party screeners agree with this screener?
No verified current third-party rating was found for TransAlta on Zoya, Musaffa, or ShariaPortfolio as of September 2026. The FAIL screener here rests on this site's own screening methodology, not on a third-party endorsement.
What could change TransAlta's halal screener?
The debt ratio sits at ~82.2% — far over the ~33% ceiling — so TransAlta would need deep deleveraging, a much higher market cap, or both. The pending US$1 billion Mountain Peak Power / Canyon Peak Power acquisition (assuming US$750 million of project debt, closing targeted early Q4 2026) adds leverage before it pays down. This screener is a snapshot dated September 28, 2026 and is re-checked quarterly after earnings.