Systems Limited (PSX: SYS) reported a 17% rise in consolidated net profit for the half-year ended June 30, 2026. Net profit reached Rs6.05bn, compared with Rs5.15bn in the same period last year. The company’s basic earnings per share (EPS) also improved to Rs3.95 from Rs3.52 in 1HCY25. Diluted EPS increased to Rs3.88, compared with Rs3.49 a year earlier.
Revenue remained the main driver of Systems Limited’s stronger financial performance. Net revenue from contracts with customers rose 35.3% year-on-year to Rs49.72bn from Rs36.74bn.
The growth reflects contributions from recent acquisitions, a healthy order backlog, and stronger international business. Confiz and BAT Shared Services Center also helped expand the company’s reach among North American enterprise clients.
Cost of sales increased 34.9% to Rs37.03bn during the period. The rise was linked partly to more than 12% growth in HR wages and currency-related pressures. Despite higher costs, gross profit increased 36.6% to Rs12.69bn from Rs9.29bn. This helped Systems Limited raise its operating profit by 28.6% to Rs6.54bn.
The company also recorded higher operating expenses during the six-month period. Distribution expenses rose 34.6% to Rs1.75bn, while administrative expenses increased 40.9% to Rs4.01bn. Research and development expenses jumped 369% to Rs116.64m from Rs24.87m. Impairment losses on financial assets also climbed sharply to Rs269.47m from Rs28.23m.
Systems Limited Financial Results
| Description | 2026 (Rs.) | 2025 (Rs.) | Change |
|---|---|---|---|
| Revenue from contracts with customers – net | 49,715,861,103 | 36,739,108,828 | 35.3% |
| Cost of sales | (37,027,470,539) | (27,453,777,706) | 34.9% |
| Gross profit | 12,688,390,564 | 9,285,331,122 | 36.6% |
| Distribution expenses | (1,749,315,669) | (1,300,076,908) | 34.6% |
| Administrative expenses | (4,013,835,150) | (2,848,741,280) | 40.9% |
| Research & development expenses | (116,644,283) | (24,868,807) | 369.0% |
| Impairment losses on financial assets | (269,469,561) | (28,227,730) | 854.6% |
| Operating profit | 6,539,125,901 | 5,083,416,397 | 28.6% |
| Other income | 567,048,665 | 820,901,359 | -30.9% |
| Share of loss from associate | – | (56,225,708) | – |
| Finance cost | (303,780,255) | (165,990,055) | 83.0% |
| Profit before taxation and levy | 6,802,394,311 | 5,682,101,993 | 19.7% |
| Levy | (397,739,772) | (337,212,254) | 17.9% |
| Profit before taxation | 6,404,654,539 | 5,344,889,739 | 19.8% |
| Taxation | (354,260,313) | (192,477,805) | 84.1% |
| Profit after taxation | 6,050,394,226 | 5,152,411,934 | 17.4% |
| Basic earnings per share (Rupees) | 3.95 | 3.52 | 12.2% |
| Diluted earnings per share (Rupees) | 3.88 | 3.49 | 11.2% |
Below the operating level, other income fell 30.9% to Rs567.05m. Finance costs, meanwhile, increased 83% to Rs303.78m from Rs165.99m. Systems Limited also benefited from the absence of losses from its associate. As a result, profit before taxation and levy rose 19.7% to Rs6.80bn.
After a levy of Rs397.74m, profit before taxation reached Rs6.40bn. That marked a 19.8% increase from Rs5.34bn in 1HCY25. The company’s taxation charge rose 84.1% to Rs354.26m from Rs192.48m. Even with the higher tax burden, profit after taxation grew 17.4% to Rs6.05bn.
Systems Limited said its international business continued to support growth during the period. AI-led deal expansion in Middle Eastern and APAC markets also contributed to the company’s performance.
The company also saw an operational recovery in its domestic segment. Together, these factors helped Systems Limited deliver stronger earnings during the first half of 2026.
