Verdant Solar 4Q26 Swing to Profit Signals Turnaround

Revenue surged 128.5% quarter-on-quarter to RM20.04 million in 4Q26, marking a decisive turnaround for Verdant Solar Holdings Berhad after three consecutive loss-making quarters. The solar photovoltaic (PV) and engineering, procurement and construction (EPCC) contractor swung from a RM2.0 million net loss in 3Q26 to profitability, according to a research note published by Malacca Securities (M+ Online) on 22 September 2026.

What Verdant Solar Does

Verdant Solar is a mid-tier solar EPC player focused on design, engineering, procurement and construction of utility-scale and commercial & industrial (C&I) solar systems across Malaysia. The group also offers integrated solar-plus-battery energy storage systems (BESS) solutions under its Solar ATAP+ brand, positioning it to capture higher-value hybrid projects as grid storage adoption accelerates.

In FY25, Verdant’s EPCC revenue reached RM111.8 million, but the C&I segment contributed only RM3.99 million or 3.57% of that total, according to Malacca Securities. This narrow exposure to the faster-growing C&I market suggests significant scope for segment expansion and margin uplift as industrial demand grows.

The RM63 Million Orderbook and FY27 Visibility

Outstanding orderbook stood at RM63 million as at June 2026, providing concrete visibility for earnings conversion in the coming fiscal year. Malacca Securities noted that this backlog underpins near-term revenue and profit growth, reducing execution risk and offering a clearer earnings floor for FY27 guidance.

The research house also flagged that Verdant’s C&I pipeline stands to benefit from PETRA’s CRESS Acceleration Package, which was introduced to fast-track grid-connected renewable energy self-consumption projects. Under this initiative, System Access Charge is fixed at 14 sen/kWh for firm supply, with a minimum 10-year contract tenure and a 31 December 2028 commercial operation date (COD) deadline, significantly improving project bankability and cost visibility for both developers and financiers.

Technical Momentum and Valuation Catalysts

On the charts, Verdant staged a strong breakout from its downtrend, moving above converging simple moving averages (SMAs) and signalling a potential shift in medium-term direction. Malacca Securities observed that MACD momentum is forming a rounding-bottom formation, a pattern often associated with trend reversals, though the research house cautioned that a break below RM0.205 support would invalidate the technical setup.

Upside resistance sits at RM0.250 and RM0.290, while downside support is pegged at RM0.210 and RM0.205, according to M+ Online’s technical analysts. Malacca Securities maintains a BUY call with a target price of RM0.76, implying potential upside of approximately 260% from mid-September 2026 levels, contingent on successful orderbook execution and C&I segment scaling.

Solar-Plus-Storage and BESS Expansion Opportunity

Verdant is strengthening its integrated solar-plus-storage offering as battery energy storage system (BESS) adoption accelerates under Malaysia’s Solar ATAP programme. Management has signalled that hybrid solutions represent a higher-value project segment, allowing the group to move beyond commodity standalone solar PV into engineered energy solutions.

The research house underlined that Verdant’s Solar ATAP+ already incorporates hybrid inverters with the option to add BESS, creating a modular upsell pathway for customers transitioning from PV-only to PV-plus-storage deployments. This positioning could meaningfully lift average contract values and gross margins as market adoption of grid-buffering storage expands in line with Malaysia’s renewable capacity targets.

What This Means for Retail Investors

Verdant Solar’s 4Q26 profit swing and the 128.5% revenue jump signal that the company has stabilised after a tough FY25–3Q26 period. The RM63 million orderbook provides a tangible earnings stream for FY27, reducing guesswork around near-term performance and giving investors a clearer line of sight to cash generation.

However, the group remains exposed to execution risk on its backlog and is still heavily weighted toward utility-scale EPCC work. The C&I and solar-plus-storage segments, while promising, remain nascent at less than 4% of revenue, meaning scaling these businesses will take time and capital deployment. Technical weakness below RM0.205 would materially weaken the bullish case.

Retail investors should review Malacca Securities’ full research report for detailed financial projections, valuation methodologies and downside scenarios before making any investment decision. The research house’s BUY call and RM0.76 target reflect confidence in Verdant’s turnaround, but like all equity research, should be weighed against your own risk tolerance and investment horizon.

The full research report is available from Malacca Securities (M+ Online), published 22 September 2026.

Key Takeaways

• RM1.5m net profit in 4Q26 marks a decisive turnaround after three consecutive quarterly losses, with revenue jumping 128.5% QoQ to RM20.04m.
• RM63 million orderbook as at June 2026 provides near-term earnings visibility and reduces FY27 execution risk for investors.
• C&I and solar-plus-storage segments remain underpenetrated, contributing only 3.57% of FY25 revenue, but benefit from CRESS Acceleration Package tailwinds and rising BESS adoption.
• Malacca Securities maintains a BUY call with RM0.76 target price, implying ~260% upside from mid-September 2026 levels, contingent on backlog execution.
• Technical support at RM0.205; break below this level would invalidate the bullish setup and signal potential downside re-accumulation.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Ratings and target prices cited are those of Malacca Securities Research and are subject to change. Always do your own research before making investment decisions.

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