Systems Limited profit rises 17 percent as exports and acquisitions lift sales

Systems Limited, the Lahore based IT services company listed on the Pakistan Stock Exchange, reported a net profit of Rs6.05 billion for the first half of 2026, up 17.4 percent from Rs5.15 billion a year earlier, according to TechJuice.

Revenue from contracts with customers rose 35.3 percent to Rs49.72 billion. Gross profit grew 36.6 percent to Rs12.69 billion, and operating profit rose 28.6 percent to Rs6.54 billion, TechJuice reported. Earnings per share were Rs3.95, against Rs3.52 in the same period of 2025.

A strong second quarter

Topline Securities, quoted by Bloom Pakistan, said second quarter net sales rose 38 percent to Rs25.74 billion. The brokerage credited the Middle East and Pakistan segments. Revenue in North America rose 39 percent, partly because of the recent Confiz acquisition, and the company expects full synergy benefits in the second half of the year.

Topline reported regional gross margins of 30 percent in North America, 35 percent in Europe, 24 percent in the Middle East, 15 percent in Pakistan and 46 percent in Asia Pacific. It maintained its Buy rating on the stock and described earnings as in line with market expectations.

Costs also climbed. Administrative expenses in the second quarter rose 42 percent to Rs2.05 billion, and finance costs more than doubled to Rs174 million, according to Bloom Pakistan. TechJuice noted that wage growth above 12 percent and currency pressure added to expenses.

The company said its international business continued to support growth. TechJuice listed the acquisitions of Confiz and BAT Shared Services Center, and deals driven by AI in the Middle East and Asia Pacific, as contributors. For the first quarter, ProPakistani had reported that Asia revenue grew 55.6 percent and the Middle East 37.5 percent, against only 7.5 percent at home.

Reported from coverage in TechJuice and Bloom Pakistan, with first quarter figures from ProPakistani.