Systems Limited’s revenue rose 35% year over year to Rs. 49.72 billion, with Technology and Asia Pacific emerging as the company’s fastest-growing segments and regions.
Systems Limited (PSX: SYS) reported a 17 percent year-over-year increase in profit after tax to Rs. 6.05 billion for the first half of calendar year 2026 (1H CY26), supported by strong revenue growth and higher exports.
Earnings per share (EPS) increased to Rs. 4.11 during the period, compared with Rs. 3.50 in 1H CY25, according to a review by Arif Habib Limited (AHL).
The company’s net sales climbed 35 percent YoY to Rs. 49.72 billion, up from Rs. 36.74 billion in the same period last year.
AHL attributed the improvement primarily to stronger export performance, highlighting broad-based growth across the company’s key industry verticals and geographic markets.
Technology Leads Sector Growth
The Technology segment recorded the strongest growth during the period, with revenue increasing 61.5 percent YoY.
Growth across other segments was as follows:
- Retail & CPG: 53.5%
- Telco: 36.8%
- Others: 29.5%
- BFSI: 25.5%
- Public Sector: 20.9%
The performance highlights continued momentum in Systems Limited’s technology-focused business, alongside sustained growth across its financial services, telecommunications, retail and public-sector portfolios.
Asia Pacific Posts 84.6% Growth
From a regional perspective, Asia Pacific delivered the strongest growth, with revenue increasing 84.6 percent YoY.
This was followed by:
- North America: 36.4%
- Middle East & Africa: 36.1%
- Pakistan & Others: 24.0%
- Europe: 22.9%
The strong performance in international markets underscores the growing contribution of Systems Limited’s overseas operations to overall revenue growth.
Gross Profit Rises 37%
Systems Limited’s gross profit increased 37 percent YoY to Rs. 12.69 billion, compared with Rs. 9.29 billion in 1H CY25.
Despite the higher gross profit, the company’s gross profit margin remained broadly stable at 25.52 percent, compared with 25.27 percent a year earlier.
However, other income fell 31 percent to Rs. 567 million from Rs. 821 million. AHL attributed the decline to exchange losses following the appreciation of the Pakistani rupee against the US dollar, with the exchange rate moving from Rs. 283 to Rs. 278.
Finance Costs Surge 83%
Systems Limited’s finance costs increased 83 percent YoY to Rs. 304 million, primarily due to higher borrowings.
The company also recorded an increase in its effective tax rate, which rose to 11 percent in H1 CY26 from 9 percent in the corresponding period last year.
Despite pressure from higher finance costs, lower other income and a higher tax rate, Systems Limited delivered double-digit earnings growth, supported by strong sales expansion and robust performance across its export-oriented business.
The results reinforce the company’s growing exposure to international technology markets, with Asia Pacific, North America and the Middle East & Africa among the key contributors to revenue growth during the first half of 2026.
