KUALA LUMPUR: Northern Solar Holdings Bhd, a leading solar engineering, procurement, construction, and commissioning (EPCC) provider in Malaysia, announced another quarter of resilient performance for the second quarter (Q2) ended September 30, 2025 (FY26), supported by steady project execution and a favourable industry backdrop.
For Q2 FY26, the group recorded revenue of RM28.1 million, up 13.0% year-on-year (YoY) from RM24.9 million.
Net profit rose 15.1% to RM4.2 million, driven primarily by higher contributions from EPCC activities across commercial, industrial, and residential clients.
On a cumulative basis, the group achieved 1H FY26 revenue of RM56.2 million, representing 40.0% growth YoY, while net profit increased to RM8.1 million from RM7.4 million previously.
Gross profit margin remained healthy at 34.0%, reflecting stable pricing and disciplined cost control.
The group’s balance sheet continued to strengthen, with cash and bank balances of RM55.9 million and a low gearing ratio of approximately 0.11 times.
Operating cash flow improved significantly to RM10.5 million in the first half of FY26, underpinning Northern Solar’s financial resilience and capacity to bid for larger projects.
Commenting on the results, managing director Lew Shoong Kai said Q2 FY26 marks another steady quarter for Northern Solar, supported by strong demand for solar solutions and consistent project execution.
“The next five years will be an unprecedented growth cycle for Malaysia’s renewable energy sector, and our strengthened financial position, increasing order book, and integrated solar plus BESS capabilities put us in an excellent position to seize these opportunities,” he said in a statement.
During the quarter, Northern Solar secured a ground-mounted SELCO project integrated with BESS in Pahang.
This project is of strategic relevance as the group prepares to participate in upcoming enhanced SELCO tenders, following the 2025 policy expansion that permits ground-mounted, floating systems, and installations covering up to 100% of electricity demand.
The successful completion of this project shows that the group can provide both solar power and BESS solutions, giving Northern Solar an advantage before the January 2026 rule that requires BESS in systems larger than 72 kWp.
This capability is expected to significantly strengthen the group’s bids for future SELCO and C&I opportunities.
Malaysia’s solar industry is entering what analysts call a five-year golden window from 2025 to 2029, driven by record-low solar panel prices that allow EPCC players to lock in stronger margins.
Further, a massive RM15–18 billion project pipeline under LSS5, LSS5+, and the upcoming LSS6, and the government’s push toward a 70% renewable energy mix by 2050, which will require the country to ramp up annual RE installations significantly.
Northern Solar is well-positioned to capitalise on these tailwinds with its strong procurement capabilities, proven execution track record, and expanding service scope.
“We are actively participating in upcoming SELCO and utility-scale tenders, and we expect these initiatives—combined with our recurring income strategy through solar asset ownership—to contribute meaningfully to the group’s long-term growth,” Lew said.
