RENEWABLE energy solutions outfit Northern Solar Holdings Bhd has reported its strongest quarterly performance since its listing on the ACE Market of Bursa Malaysia on Feb 6, 2025 driven by accelerating project execution across its commercial and industrial segments.
The solar engineering, procurement, construction and commissioning (EPCC) provider in Malaysia saw its revenue soared 50% year-on-year (yoy) to RM36.09 mil (3Q FY3/2025: RM24.05 mil) and a 28.2% jump from the immediate preceding quarter (2Q FY3/2025: RM28.14 mil).
The group’s net profit during the period under review notched up 19.5% yoy to RM4.1 mil (2Q FY3/2026: RM3.43 mil) which was however flattish compared to RM4.22 mil in the immediate 2Q FY3/2026.
For the cumulative 9M FY3/2026 period, Northern Solar raked in 43.7% yoy growth in revenue to RM92.27 mil (9M FY3/2025: RM64.2 mil) while its net earnings climbed 12.1% yoy to RM12.18 mil (9M FY3/2025: RM10.86 mil).
This revenue growth stems directly from higher EPCC delivery volumes across commercial, industrial and residential clients.
‘3 consecutive profitable quarters’
While the gross profit margin for the nine-month period compressed to 32.9% (from 37.6% previously), this variation strictly reflects the cost dynamics associated with executing larger-scale installations.
This is consistent with the group’s strategic shift toward higher-value projects. Importantly, absolute gross profit still grew 25.9% yoy to RM30.4 mil.
“Three consecutive profitable quarters since our IPO and our strongest revenue quarter on record,” enthused Northern Solar’s managing director S.K. Lew.
“That is the answer to the question of whether we can execute at scale. The revenue trajectory – RM28 mil, RM28 mil and RM36 mil – tells you the larger projects are now entering their billing phases.”
On a bullish note, Lew pointed to the fact despite tighter margins on bigger installations, the group “has been clear about that trade-off”.
“What matters is that we’re building a business that can win larger mandates, deliver them and grow absolute profit while doing it,” he envisages.
“Kicking in from January 2026, the Solar ATAP (Accelerated Transition Action Programme) provides Northern Solar’s C&I (commercial and industrial) rooftop business a new layer of demand that did not exist before and we’re well-positioned to capture it.”
Larger-scale installations enter active billing
Having grown 43.1% yoy, EPCC Solar PV (photovoltaic) remained the group’s primary revenue driver during its latest quarter at RM90.3 mil or 97.8% of total revenue
Revenue growth was driven by higher project delivery volumes across the commercial, industrial and residential segments with larger-scale installations entering their active billing phase in 3Q FY3/2026.
The group’s recurring revenue streams – while small in absolute terms – are growing. Sale of electricity from owned solar assets grew 78.2% to RM1.8 mil while operations and maintenance services more than doubled to RM200,000.
Together these contribute 2.2% of total revenue. The group has indicated it is exploring opportunities to expand these recurring streams which would provide greater earnings stability over time.
All in all, Northern Solar exited its 3Q FY3/2026 with a highly robust balance sheet. As of end-December 2025, its cash and bank balances stood at RM42.6 mil.
The group utilised its liquidity to reduce total borrowings by 23.1% to just RM7.9 mil, thus resulting in a net cash position of RM34.6 mil and a low gross gearing ratio of 0.10x.
Looking ahead, Northern Solar operates within a sector supported by strong structural tailwinds.
The National Energy Transition Roadmap (NETR) and the Large-Scale Solar (LSS) programmes continue to drive utility-scale opportunities.
Furthermore, the introduction of the Solar ATAP programme (effective Jan 1, 2026) acts as a new demand catalyst for the group’s core commercial, industrial and residential rooftop business.
At the close of yesterday’s (Feb 27) mallet trading, Northern Solar was up 2 sen or 4.26% to 49 sen with 158,300 shares traded, thus valuing the company at RM194 mil. – Feb 28, 2026
