Positioned to Ride Malaysia’s Five-Year Solar Supercycle
- 2QFY2026 revenue grew 13.0% YoY to RM28.1 million; PAT up 15.1% YoY to RM4.2 million, with PAT margin of ~ 15%.
- 1HFY2026 revenue surged 40.0% YoY to RM56.2 million, while PAT increased 8.6% YoY to RM8.1 million, underpinned by higher-margin EPCC projects.
- Enhanced SELCO and mandatory BESS rules position Northern Solar to capture new solar+BESS projects
- Named “Solar Company of the Year: EPC” at The Solar Week Malaysia 2025
KUALA LUMPUR, 17th NOVEMBER 2025 – Northern Solar Holdings Berhad (“Northern Solar” or “the Group”), a leading solar engineering, procurement, construction and commissioning (“EPCC”) provider in Malaysia, today announced another quarter of resilient performance for the second quarter ended 30 September 2025 (“2QFY2026”), supported by steady project execution and a favourable industry backdrop.
For 2QFY2026, the Group recorded revenue of RM28.1 million, up 13.0% year-on-year from RM24.9 million. Profit after tax (“PAT”) 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 1HFY2026 revenue of RM56.2 million, representing 40.0% growth year-on-year, while PAT 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 FY2026, underpinning Northern Solar’s financial resilience and capacity to bid for larger projects.
“2QFY2026 marks another steady quarter for Northern Solar, supported by strong demand for solar solutions and consistent project execution. The next five years represent an unprecedented growth cycle for Malaysia’s renewable energy sector, and our strengthened financial position, rising order book and integrated solar+BESS capabilities place us in an excellent position to capture these opportunities,” said Mr. Lew Shoong Kai, Managing Director of Northern Solar, following the release of the quarterly report.
During the quarter, Northern Solar secured a ground-mounted SELCO project integrated with BESS in Pahang. This project is strategic relevance as the Group prepares to participate in upcoming enhanced SELCO tenders, following the 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 Group’s ability to deliver integrated solar + BESS solutions, positioning Northern Solar competitively ahead of the January 2026 mandatory BESS requirement for systems above 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 describe as a five-year golden window (2025–2029), with three structural tailwinds converging:
- Solar panel prices are at a cyclical bottom, enabling EPCC players to secure higher margins before expected price recovery in 2026.
- Massive project pipelines under LSS5, LSS5+ and the upcoming LSS6, representing RM15–18 billion worth of solar contracts over the next two years.
- The Government’s commitment to achieving 70% renewable energy mix by 2050, requiring Malaysia to quadruple its annual RE installations.
Northern Solar is well-positioned to capitalise on these tailwinds with its strong procurement capability, proven execution track record and expanding scope of services.
“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,” remarked the Managing Director.
Northern Solar continues to differentiate itself through:
- Strong balance sheet post-IPO, enabling participation in larger, higher-value projects
- Integrated EPCC + BESS capability, a key requirement for 2026 onwards
- High-margin C&I segment strength, historically delivering better conversion rates and profitability
- Strategic partnership with NWEPDI (China) supporting entry into LSS and utility projects
- A growing pipeline across residential, C&I, ground-mounted SELCO, utility solar and asset ownership
