Systems Limited has posted a strong financial performance for the six months ended June 30, 2026, with consolidated revenue rising sharply as the technology company benefited from organic growth, acquisitions and increasing demand for artificial intelligence-driven services.
According to the company’s unaudited interim financial results, consolidated revenue increased 35.3% year-on-year to Rs49.72 billion, compared with Rs36.74 billion in the same period last year. Gross profit climbed 36.6% to Rs12.69 billion, while operating profit rose 28.6% to Rs6.54 billion.
The company’s profit after taxation reached Rs6.05 billion, up 17.4% from Rs5.15 billion a year earlier. Basic earnings per share also improved to Rs3.95 from Rs3.52, representing a 12.2% increase, while diluted EPS rose 11.2% to Rs3.88.
Growth Despite Currency and Cost Pressures
Systems Limited said its performance came despite several cost-related challenges. The company absorbed annual wage adjustments and fuel-price inflation during the period, while the Pakistani rupee appreciated against the US dollar.
The company noted that the exchange rate moved from around Rs283 per dollar in June 2025 to Rs278 in June 2026. Since more than 90% of its revenue is foreign-currency based, the stronger rupee affected operating margins and contributed to an exchange loss during the period.
Consolidated exchange loss stood at Rs158 million during the six months, compared with an exchange gain of Rs528 million in the corresponding period of 2025. Despite this headwind, Systems Limited maintained absolute growth in profitability through higher revenues, efficiency improvements and operational optimization.
Acquisitions Add Momentum
The company’s recent acquisitions are also playing an important role in its growth strategy. Systems Limited highlighted the performance of Confiz and the BAT Shared Services Center, both of which contributed positively to revenue growth.
The acquisition of Confiz has given the company greater access to enterprise customers in North America. Management sees opportunities to cross-sell and upsell services by combining Confiz’s customer relationships with Systems Limited’s scale, delivery capabilities and industry expertise. Integration efforts are progressing, with further synergies expected during the second half of the year.
Technology and Retail Emerging as High-Growth Segments
The company’s segment performance also reflects a broadening business base. Banking, Financial Services and Insurance (BFSI) remains the largest vertical, followed by telecommunications.
However, Technology and Retail & CPG emerged as the fastest-growing segments, with the company specifically linking the growth in these areas to the merger of Confiz and its partnerships with other global system integrators.
The segment figures show technology revenue increasing to Rs6.98 billion from Rs4.32 billion, while Retail & CPG revenue rose to Rs5.97 billion from Rs3.89 billion. Telco revenue reached Rs12.41 billion compared with Rs9.07 billion a year earlier.
Asia Pacific Leads Regional Growth
Systems Limited is also expanding across international markets. The company said all four major geographic regions recorded strong growth, with Asia Pacific taking the lead in growth, while the Middle East & Africa remained the largest contributor to revenue and profits, followed by North America.
North America remains a major strategic priority following the Confiz acquisition. In Europe, the company has established a UK entity that is expected to become a hub for wider European expansion.
Meanwhile, investments in Vietnam, Malaysia and Indonesia are generating stronger momentum in Asia Pacific, supported by a growing backlog and expanded channel partnerships. The company is also evaluating the possibility of establishing a delivery center in Malaysia.
AI Becomes a Key Growth Engine
Artificial intelligence is emerging as one of the biggest opportunities for Systems Limited. The company said AI is amplifying demand for technology services, with productivity improvements helping create larger enterprise deals.
Systems Limited is embedding AI into both internal processes and client-facing solutions while expanding the use of AI tools across its workforce. The company believes its base of more than 300 customers provides significant opportunities, as businesses increasingly seek to use AI as a growth engine.
The company is also continuing to invest in its global delivery capabilities. Its Egypt center is now operational with increased capacity, while development centers in Malaysia and planned operations in Jordan are expected to broaden access to technology talent.
Standalone Results Show Mixed Picture
On a standalone basis, revenue increased 19.2% to Rs25.90 billion from Rs21.72 billion. Gross profit rose 9.0% to Rs6.03 billion and operating profit increased 9.4% to Rs3.71 billion.
However, standalone profit declined 13.7% to Rs3.46 billion from Rs4.01 billion. Basic EPS fell to Rs2.26 from Rs2.74. The company attributed the weaker bottom line partly to an exchange loss of Rs140.25 million compared with an exchange gain of Rs561.14 million in the same period last year, along with lower interest income from related parties following the settlement of intercompany loans.
Outlook Remains Focused on Global Expansion
Looking ahead, Systems Limited expects to build on its healthy backlog, acquisitions and expansion into new service lines. Management plans to further diversify revenue across North America, Europe, Asia Pacific, the Middle East and its domestic market.
The company also intends to continue exploring mergers and acquisitions, particularly in Western markets, with the stated objective of strengthening its presence in the US and Europe and creating a more balanced geographic portfolio.
Overall, the first-half results show Systems Limited continuing to expand at a strong pace despite currency pressures and rising costs. With AI adoption accelerating, recent acquisitions opening new markets and international operations continuing to scale, the company is positioning itself for another phase of global growth in the second half of 2026.
