Systems Limited has reported a 14.4% year-on-year increase in consolidated profit after tax for the nine months ended September 30, 2026, as revenue from customer contracts continued to grow. According to the company’s financial results, consolidated profit after tax reached Rs9.085 billion, compared with Rs7.944 billion during the corresponding period last year. Revenue increased by 33.2% to Rs76.492 billion from Rs57.419 billion, reflecting higher business activity across the company’s operations. Basic earnings per share rose to Rs5.93 from Rs5.42, while diluted earnings per share increased to Rs5.88 from Rs5.36. Gross profit also recorded growth, rising 24.6% to Rs19.319 billion from Rs15.508 billion in the same period of 2025. The results indicate that the company expanded its revenue base and generated higher overall earnings during the first nine months of the year, although rising operating expenses and financing costs affected its financial performance.
The company’s third-quarter results also showed year-on-year growth in both revenue and profitability. Consolidated profit after tax for the July-to-September quarter reached approximately Rs3.035 billion, an increase of around 9% compared with Rs2.79 billion recorded in the corresponding quarter of 2025. Earnings per share for the quarter stood at Rs1.98, compared with Rs1.90 a year earlier. Net sales increased by approximately 29% to Rs26.78 billion from Rs20.68 billion, according to the reported results. Regional performance contributed to the increase in business activity, with third-quarter sales in the Middle East rising 26% and sales in North America increasing 41%, according to a review by Topline Securities. The company continued to expand its Middle Eastern business despite geopolitical uncertainty, while its acquisition of Confiz contributed to its North American operations. These regional developments highlight the importance of international markets to the company’s revenue growth and its position within the technology services industry.
Despite the increase in revenue, Systems Limited faced higher costs during the nine-month period. Cost of sales rose 36.4% to Rs57.173 billion, outpacing the growth in revenue and contributing to pressure on gross margins. Distribution expenses increased 31.3% to Rs2.716 billion, while administrative expenses climbed 42% to Rs6.340 billion. Research and development expenses also rose significantly, reaching approximately Rs189.5 million compared with Rs97.3 million in the same period last year. Operating profit nevertheless increased by 14% to Rs9.737 billion from Rs8.540 billion. Other income rose 50.5% to Rs934.1 million, providing additional support to the company’s earnings. However, finance costs more than doubled, increasing approximately 103% to Rs499.1 million from Rs246 million a year earlier. Profit before taxation rose 16.6% to Rs9.639 billion, while the taxation charge increased 73.6% to Rs554.5 million. The higher tax expense and operating costs limited the extent to which revenue growth translated into an increase in net profit.
The results come as Pakistan’s listed technology sector continues to be assessed on its ability to expand international business, manage costs and sustain earnings growth. Systems Limited operates in software development, software trading and business process outsourcing, making its financial performance relevant to investors tracking the country’s technology and IT services businesses. Its nine-month revenue growth demonstrates increased business activity, while the rise in operating profit indicates that earnings from core operations also improved during the reporting period. At the same time, the faster increase in cost of sales and administrative expenses highlights the financial pressures accompanying expansion. Higher finance costs and taxation further affected the final profit figure, even as the company reported stronger revenue and gross profit. The latest results provide an update on the company’s financial position through September 2026, with revenue, operating profit and net earnings all higher than their year-earlier levels. Investors will continue to monitor whether the company can maintain its growth in international markets while controlling expenses and preserving profitability in subsequent reporting periods.
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