KUALA LUMPUR: Northern Solar Holdings Bhd, a renewable energy group specialising in the engineering, procurement, construction and commissioning (EPCC) of solar photovoltaic (PV) systems, recorded revenue of RM38.2 million for Q1 ended June 30, 2026 (FY27).
This represents an increase of 36.1% year-on-year (YoY) from RM28.0 million in Q1 FY26, marking the group’s highest quarterly revenue since its listing in February 2025.
The stronger top-line performance was driven primarily by higher progress billings and revenue recognition from the group’s solar PV EPCC activities.
EPCC revenue increased 36.6% YoY to RM37.4 million from RM27.4 million, accounting for approximately 98.1% of group revenue during the quarter.
Sequentially, group revenue increased 84.1% from RM20.7 million in Q4 FY26, reflecting a higher level of project execution entering the new financial year.
Gross profit stood at RM10.5 million, compared with RM10.8 million in the same quarter last year.
The gross profit margin moderated to 27.4% from 38.4%, reflecting a shift in project mix toward larger-scale contracts that carry comparatively lower percentage margins on higher contract values.
Profit before tax (PBT) held steady at RM5.6 million, while profit after tax (PAT) increased to RM4.0 million from RM3.8 million a year earlier, an improvement the group attributed mainly to a lower effective tax rate during the quarter.
PATAMI stood at RM3.97 million, bringing basic earnings per share to 1.00 sen from 0.97 sen previously.
Managing director Lew Shoong Kai said Q1 reflects a higher volume of project execution as the group moves into the next stage of Northern Solar’s growth.
“As our project mix expands, percentage margins will naturally vary across different contracts.
“Our focus remains on the overall economics of each contract, disciplined execution, and protecting absolute returns rather than pursuing revenue volume for its own sake,” he said.
Northern Solar maintained a solid balance sheet as of June 30, 2026.
Cash and bank balances stood at RM44.5 million against borrowings of RM9.6 million, translating to a gearing ratio of 0.11 times.
Borrowings declined from RM10.3 million as at 31 March 2026, while net assets per share improved to RM0.22 from RM0.21.
“Our financial position gives us the flexibility to evaluate larger opportunities while maintaining discipline on working capital and project risk.
“We will continue to build on our core commercial and industrial distributed solar activities while selectively pursuing utility-scale opportunities where the contract structure and risk-return profile meet our requirements,” he said.
Malaysia’s renewable energy outlook remains supported by ongoing energy transition initiatives.
In July 2026, the Ministry of Energy Transition and Water Transformation announced the Large Scale Solar 6 (LSS6) programme, comprising 2,500MW of solar generation capacity paired with 1,250MW of Battery Energy Storage System (BESS) capacity.
Northern Solar intends to evaluate and participate in suitable LSS6 bidding opportunities, either independently or through strategic partnerships, as part of its broader expansion into utility-scale renewable energy projects.
Moving forward, the group will remain focused on securing new EPCC contracts, executing its existing order book, expanding its renewable energy asset portfolio, and pursuing opportunities across commercial and industrial, Solar ATAP, BESS, and utility-scale solar.
Northern Solar expects the overall performance for FY27 to remain satisfactory.
Separately, Northern Solar also received approval from the Securities Commission Malaysia (SC) for its transfer from the ACE Market to the Main Market of Bursa Malaysia.
