Is ED (Consolidated Edison, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ED is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in ED.

Consolidated Edison, Inc. is a major utility company providing regulated electric, gas, and steam delivery services across the United States. It serves over 3.5 million electric customers and 1.1 million gas customers, primarily in New York City, Westchester County, and parts of New Jersey. For Muslim investors, ED currently holds a Doubtful status based on AAOIFI screening standards. While its core utility business is perfectly halal and it easily passes the cash and interest income screens, the stock fails the critical debt screen. The primary concern from an Islamic finance perspective is Consolidated Edison's heavy reliance on debt financing. The company's debt-to-market cap ratio sits at 71.9%, which significantly breaches the strict 33% upper limit allowed for shariah-compliant portfolios. Given the capital-intensive nature of the utility sector, high debt levels are common, but Muslim investors must strictly adhere to these leverage limits. Investors should monitor ED's future balance sheets to see if debt levels are eventually reduced to compliant thresholds. Consolidated Edison, Inc. operates in the Utilities sector under the Regulated Electric industry and is headquartered in New York City, NY, US. The company is led by CEO Timothy Cawley and employs approximately 15,097 people.

ED was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. ED passed 3 of these 4 screens.

ED was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.