Northern Solar Holdings Berhad has reported its strongest quarterly performance since listing on the ACE Market, driven by accelerating project execution across commercial and industrial segments.
For the third quarter ended 31 December 2025 (Q3 FY2026), the Group posted revenue of RM36.1 million, marking a 50.1% year-on-year increase and a 28.2% rise from the preceding quarter. Profit After Tax (PAT) grew 19.5% to RM4.1 million.
On a cumulative nine-month basis (9M FY2026), revenue rose 43.7% year-on-year to RM92.3 million, while PAT increased 12.1% to RM12.2 million.
The revenue expansion was primarily driven by higher EPCC (engineering, procurement, construction and commissioning) delivery volumes across commercial, industrial and residential clients. Although the nine-month gross profit margin narrowed to 32.9% from 37.6% previously, the company attributed the compression to cost dynamics associated with executing larger-scale installations in line with its strategic shift toward higher-value projects. Absolute gross profit nonetheless climbed 25.9% year-on-year to RM30.4 million.
Managing Director Mr. SK Lew said the company has now delivered three consecutive profitable quarters since its IPO, with larger projects entering their billing phases in Q3. He noted that while margins are tighter on bigger installations, the strategy supports higher absolute profit growth and positions the Group to capture new demand from the Solar ATAP programme introduced in January.
EPCC Solar PV remained the primary revenue contributor at RM90.3 million, accounting for 97.8% of total revenue and recording 43.1% year-on-year growth. The increase was supported by higher project delivery volumes and the billing progression of larger installations.
Recurring revenue streams, though modest in size, continued to expand. Revenue from electricity sales generated by owned solar assets rose 78.2% to RM1.8 million, while operations and maintenance services more than doubled to RM0.2 million, together contributing 2.2% of total revenue. The Group said it is exploring opportunities to further scale these recurring income streams to enhance earnings stability.
The company closed the period with a strengthened balance sheet. As at 31 December 2025, cash and bank balances stood at RM42.6 million. Total borrowings were reduced by 23.1% to RM7.9 million, resulting in a net cash position of RM34.6 million and a low gross gearing ratio of 0.10x.
Looking ahead, Northern Solar said it operates in a sector supported by strong structural tailwinds, including Malaysia’s National Energy Transition Roadmap (NETR) and the Large-Scale Solar (LSS) programmes, which continue to drive utility-scale opportunities. The recently introduced Solar ATAP programme, effective 1 January 2026, is expected to further stimulate rooftop demand in the commercial and industrial segment.
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