Systems Limited has reported a 17.4 per cent increase in consolidated profit after taxation for the six months ended June 30, 2026, as strong revenue growth, recent acquisitions and expanding international operations supported the company’s financial performance. The company recorded a profit after taxation of Rs6.05 billion during the first half of 2026, compared with Rs5.15 billion in the corresponding period last year. Basic earnings per share increased to Rs3.95 from Rs3.52, while diluted earnings per share rose to Rs3.88 from Rs3.49. The company’s consolidated revenue from contracts with customers increased 35.3 per cent year on year to Rs49.72 billion from Rs36.74 billion, reflecting stronger business activity across its international markets and contributions from recent acquisitions.
The increase in revenue was accompanied by a 36.6 per cent rise in gross profit, which reached Rs12.69 billion compared with Rs9.29 billion in the same period last year. Cost of sales increased 34.9 per cent to Rs37.03 billion, with the company facing higher human resources costs and currency related pressures during the period. Systems Limited said wage inflation exceeded 12 per cent, while changes in exchange rates also affected its predominantly foreign currency based revenue. Despite these pressures, the increase in gross profit supported a 28.6 per cent rise in operating profit to Rs6.54 billion from Rs5.08 billion. The company’s distribution expenses increased 34.6 per cent to Rs1.75 billion, while administrative expenses rose 40.9 per cent to Rs4.01 billion as the business continued to support its international expansion and growing operations.
The company’s recent acquisitions, including Confiz and BAT Shared Services Center, contributed to the expansion in its top line and strengthened its presence among international enterprise customers. The Confiz acquisition has particularly expanded Systems Limited’s access to North American enterprise clients, while the company continues to develop its operations across other international markets. Systems Limited has also identified artificial intelligence as an increasingly important source of demand for technology services, with enterprise customers seeking to use artificial intelligence to improve productivity and develop new business opportunities. The company has been incorporating artificial intelligence into its own internal processes and client solutions, while expanding the use of related tools across its workforce. Demand for artificial intelligence services has also been increasing across the Middle East and Asia Pacific markets, particularly among banking, telecommunications and public sector customers.
Despite higher operating costs, the company’s financial position remained positive during the period. Other income declined 30.9 per cent to Rs567.05 million, while finance costs increased 83 per cent to Rs303.78 million. However, the absence of losses from an associate compared with the corresponding period last year helped support profit before taxation, which increased 19.8 per cent to Rs6.40 billion. The company recorded a taxation expense of Rs354.26 million, an increase of 84.1 per cent from Rs192.48 million in the same period last year. Systems Limited has said its growth is being supported by a healthy backlog, international expansion and demand for artificial intelligence driven technology services. Its Pakistan business has also undergone an operational recovery, with profitability improving from negative to positive levels. The company is continuing to assess expansion and acquisition opportunities in Western markets while increasing delivery capacity in countries including Egypt and Malaysia and planning further development capacity in Jordan.
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