RENEWABLE energy solutions outfit Northern Solar Holdings Bhd has unveiled another resilient performance for its 2Q FY2/2026 ended Sept 30, 2025 buoyed by steady project execution and a favourable industry backdrop in its core engineering, procurement, construction and commissioning (EPCC) segment.
For the quarter under review, the group’s net profit firmed 15.1% year-on-year (yoy) to RM4.22 mil (2Q FY3/2025: RM3.67 mil) on the back of 13.0% yoy revenue growth to RM28.14 mil (2Q FY3/2025: RM24.91 mil) which was driven primarily by higher contributions from EPCC activities across commercial, industrial and residential clients.
On a cumulative basis, the group’s 1H FY3/2026 revenue spiralled 40% to RM56.19 mil (1H FY3/2025: RM40.16 mil) while its net earnings inched up 8.6% to RM8.07 mil (1H FY3/2025: RM7.43 mil)
As it is, Northern Solar’s 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 mil and a low gearing ratio of about 0.11 times.
Operating cash flow improved significantly to RM10.5 mil in 1H FY3/2026, underpinning Northern Solar’s financial resilience and capacity to bid for larger projects.
“2Q FY3/2026 marks another steady quarter for Northern Solar, supported by strong demand for solar solutions and consistent project execution,” observed the group’s managing director Lew Shoong Kai.
“The next five years represent an unprecedented growth cycle for Malaysia’s renewable energy sector with our strengthened financial position, rising order book and integrated solar+BESS capabilities placing us in an excellent position to capture these opportunities.”
Buoyant integrated solar+BESS solutions demand
During its 2Q FY3/2026, Northern Solar secured a ground-mounted SELCO (self-consumption) project which is integrated with BESS (battery energy storage system) in Pahang.
This project is strategic relevance as the group prepares to participate in upcoming enhanced SELCO tenders following its 2025 policy expansion that permits ground-mounted systems, floating systems and installations covering up to 100% of electricity demand.
The successful execution of this project demonstrates the Northern Solar’s ability to deliver integrated solar+BESS solutions, thus positioning the group competitively ahead of the January 2026 mandatory BESS requirement for systems above 72 kWp (kilowatt-peak).
This capability is expected to significantly strengthen the group’s bids for future SELCO and C&I opportunities.
As it is, Malaysia’s solar industry is entering what analysts describe as a five-year golden window (2025–2029) with three structural tailwinds converging:
- Solar panel prices are at a cyclical bottom, hence enabling EPCC players to secure higher margins before expected price recovery in 2026.
- Massive project pipelines under LSS5 or Fifth Large-Scale Solar (LSS) programme, LSS5+ and the upcoming LSS6 alone represent RM15-RM18 bil worth of solar contracts over the next two years.
- The government is committed to achieving 70% renewable energy mix by 2050, thus requiring Malaysia to quadruple its annual RE installations.
“We’re actively participating in upcoming SELCO and utility-scale tenders,” enthused Lew. “We expect these initiatives – combined with our recurring income strategy through solar asset ownership – to contribute meaningfully to the group’s long-term growth.”
At the close of today’s (Nov 17) market trading, Northern Solar was up 1 sen or 1.49% to 68 sen with 39,800 shares traded, thus valuing the company at RM269 mil. – Nov 17, 2025
