KUALA LUMPUR (Nov 17): Northern Solar Holdings Bhd (KL:NORTHERN) posted a 15.2% increase in net profit to RM4.22 million for the second quarter ended Sept 30, 2025 (2QFY2026), compared with RM3.67 million a year earlier, driven by higher project billings.

Revenue rose 13% to RM28.14 million from RM24.91 million. No dividend was declared for the quarter.

For the first half of FY2026, net profit climbed 8.7% to RM8.07 million from RM7.43 million, while total revenue surged 39.9% to RM56.19 million from RM40.16 million, the group's bourse filing showed.

Northern Solar’s balance sheet also strengthened, with cash and bank balances of RM55.9 million and a low gearing ratio of about 0.11 times. Operating cash flow improved significantly to RM10.5 million in the first half of FY2026, underpinning the group’s financial resilience and capacity to bid for larger projects.

Commenting on the results, managing director Lew Shoong Kai in a statement said the quarter reflected steady growth, 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 (battery energy storage systems) capabilities place us in an excellent position to capture these opportunities,” he added.

The group said that during the quarter, Northern Solar secured a ground-mounted self-consumption (SelCo) project with battery energy storage systems (BESS) in Pahang. This project is strategically important as the group prepares for upcoming SelCo tenders under the 2025 policy, which allows ground-mounted, floating, and full-demand systems. Successfully completing the project shows Northern Solar’s ability to deliver integrated solar + BESS solutions, boosting its competitiveness ahead of the January 2026 mandatory BESS requirement for systems over 72 kilowatt peak.

Lew added that the group is actively participating in upcoming SelCo and utility-scale tenders, with initiatives expected to contribute meaningfully to long-term growth alongside its recurring income strategy through solar asset ownership.

At Monday’s close, Northern Solar shares were up one sen or 1.5% at 68 sen, valuing the group at RM269 million. The stock has gained 7.9% from its listing price of 63 sen on Feb 3.