Systems Limited (SYS), Pakistan’s largest listed technology company, reported a profit after tax of Rs. 3.03 billion for the first quarter of calendar year 2026, translating into earnings per share of Rs. 2.05, compared with a profit of Rs. 2.5 billion and earnings per share of Rs. 1.71 in the same period last year.
According to a result review by Arif Habib Limited, the company’s profitability improved primarily due to stronger export performance and the consolidation of its recent acquisition of Confiz from January 2026 onward.
Net revenue increased 33 percent year-on-year to Rs. 23.98 billion, compared with Rs. 18.08 billion in the corresponding quarter last year. Growth was led by strong performance in the retail segment, which expanded 70 percent, followed by technology services at 58.4 percent, telecom at 41.5 percent and BFSI, which includes banking and financial services, at 22.5 percent.
On a regional basis, the Middle East remained the largest growth contributor, posting growth of 37.5 percent. Europe expanded 35.8 percent, North America grew 33.5 percent, Asia increased 55.6 percent and Pakistan recorded growth of 7.5 percent.
Gross profit rose 33 percent to Rs. 6.04 billion, while the gross profit margin remained largely unchanged at 25.18 percent compared with 25.17 percent a year earlier.
The company reported other income of Rs. 340 million during the quarter, broadly unchanged from the previous year’s level. However, it booked exchange losses of Rs. 26.2 million due to unfavorable currency movements, compared with an exchange gain of Rs. 196 million in the same period last year.
Finance costs increased 44 percent year-on-year to Rs. 129 million, mainly due to higher short-term borrowings. Despite this, profit before tax climbed 23 percent to Rs. 3.33 billion, while profit after tax increased 21 percent to Rs. 3.03 billion.
Systems Limited also reported a lower effective tax rate of 9.1 percent during the quarter, compared with 14.5 percent in the corresponding period last year.
Founded in 1977, Systems Limited is Pakistan’s largest technology exporter and one of the country’s leading digital transformation and software services companies. The company operates across North America, Europe, the Middle East, Africa and Asia, serving clients in sectors including banking, telecommunications, retail, healthcare and public services.
