Systems Limited is positioning its acquisition of US-based Confiz as a major driver of scalable earnings growth from calendar year 2027, while continuing to pursue enterprise artificial intelligence and data engineering opportunities across key international markets. During the company’s first-half calendar year 2026 corporate briefing, management outlined a growth strategy focused on integrating Confiz into its existing operations, increasing cross-selling opportunities and pursuing selective mergers and acquisitions in North America and Europe, particularly the United Kingdom. Management described 2026 as a foundational integration year for Confiz, which has already contributed around 25% to 30% of Systems Limited’s North American growth during the first half of the year.
The company plans to use the combined capabilities of Systems Limited and Confiz to expand its international enterprise technology business, with management placing particular emphasis on artificial intelligence, data engineering and digital transformation opportunities. The company is also looking at selective offshore acquisitions that can complement its existing presence in the Middle East, which remains one of its most important markets. Management highlighted government-led digital mandates in the Gulf Cooperation Council region as an important source of demand, including the United Arab Emirates’ push toward autonomous AI agentic workflows. These developments are generating requirements for large-scale enterprise data consolidation, integration of legacy systems and cloud transformation, creating potential opportunities for technology companies with capabilities across AI, data and enterprise systems.
Systems Limited’s financial performance during the first half of CY26 also reflected continued expansion across its international operations. Consolidated revenue increased by approximately 35% to 36% year-on-year to Rs49.7 billion, supported by around 20% organic growth. Gross profit margin remained at 25.5%, while management expects margins to recover toward 28% to 29% as acquisition-related synergies develop and overlapping costs are removed. From a geographical perspective, the Middle East and Africa remained the company’s largest revenue contributor, accounting for more than half of consolidated turnover and recording 36% year-on-year growth. North American revenue increased by approximately 36% to 39% year-on-year, supported by the consolidation of Confiz, while Asia Pacific revenue rose by more than 84% due to a one-off high-margin project that management expects to normalize over the full year.
Management also discussed Systems Limited’s foreign exchange exposure, noting that approximately 94% of total revenue is denominated in foreign currencies while around 56% of operating costs remain in Pakistani rupees. Since customer contracts generally have tenures ranging from one to three years and typically do not include quarterly currency pass-through clauses, appreciation of the Pakistani rupee can create temporary pressure on margins. Management estimated that a 2% to 3% depreciation of the rupee could add approximately $10 million to annual profitability. Within Pakistan, the company’s gross profit margin improved significantly to 17%, compared with 8.9% during the same period last year. With Confiz integration continuing through 2026, Systems Limited expects the acquisition, cross-selling initiatives, international expansion and targeted M&A activity to form key components of its strategy for sustaining growth from CY27 onward.
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