Is NI (NiSource Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NI 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 NI.

NiSource Inc. is a prominent energy holding company that operates as a regulated natural gas and electric utility in the United States. The company manages over 54,600 miles of distribution pipelines, serving millions of residential, commercial, and industrial customers across states like Indiana, Ohio, Pennsylvania, and Virginia. For Muslim investors, NiSource currently holds a Doubtful shariah compliance status based on AAOIFI standards. Although its core utility services easily pass the business activity screen, the stock fails the financial screening criteria due to excessive conventional borrowing. The primary concern for halal investors is NiSource's debt-to-market cap ratio, which stands at a non-compliant 69.8%, well above the 33% maximum allowable threshold. On a positive note, the company's interest income is negligible at just 0.15% of revenue, meaning its earnings are almost entirely derived from permissible utility operations rather than financial engineering. Because regulated utility companies are inherently capital-intensive, high debt levels are exceptionally common in this sector to fund infrastructure projects. Islamic investors should monitor NiSource's balance sheet and market valuation to see if the company manages to reduce its leverage to compliant levels in the future. NiSource Inc. operates in the Utilities sector under the Regulated Gas industry and is headquartered in Merrillville, IN, US. The company is led by CEO Lloyd Yates and employs approximately 7,687 people.

NI 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. NI passed 3 of these 4 screens.

NI 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.