Systems Limited (PSX: SYS), one of Pakistan’s leading technology companies, has announced a robust set of financial results for the second quarter of the calendar year 2025, posting a remarkable 59 percent year-on-year growth in profitability. The company recorded a profit after tax (PAT) of Rs. 2,651 million, translating into earnings per share (EPS) of Rs. 1.81 for 2QCY25. This compares with Rs. 1,672 million (EPS: Rs. 1.15) earned in the same quarter of the previous year.
The strong performance has largely been driven by expanding technology services exports and healthier gross margins. For the first half of 2025, Systems Limited achieved cumulative earnings of Rs. 5,152 million (EPS: Rs. 3.52), marking a solid trajectory of growth despite macroeconomic headwinds.
The company’s revenue profile also showed consistent expansion. Net sales for the first half of the year rose to Rs. 36,739 million, representing an 18 percent year-on-year increase. Quarterly revenues mirrored this trend, climbing 18 percent to Rs. 18.6 billion in the April–June period of 2025 compared to the same period last year.
Breaking down the performance by business segments, Telecommunications Services led growth with a substantial 32 percent year-on-year increase. The Banking, Financial Services, and Insurance (BFSI) segment followed with a 21 percent rise, while Technology Solutions registered an 8 percent increase. In terms of profitability, BFSI and Telecommunications remained the fastest-growing verticals, whereas Technology and Retail businesses continued to deliver some of the highest returns.
Operational efficiency played a key role in boosting margins. Gross margins for the quarter improved to 25.4 percent, up from 22.9 percent in 2QCY24. The gains were attributed to better billing rates, productivity improvements, and disciplined control over fixed costs. This indicates that the company has been able to scale efficiently while ensuring profitability in a competitive international market.
On the expense side, administrative costs rose by 41 percent year-on-year during the quarter, largely reflecting the impact of persistent inflationary pressure. However, the company saw a sharp decline in finance costs, which fell by 45 percent to Rs. 76 million in 2QCY25. This was mainly a result of lower interest rates during the review period, which eased the financial burden and supported net profitability.
The results underscore Systems Limited’s ability to leverage Pakistan’s growing IT export market while continuing to diversify its global client base. With digital transformation demand rising across BFSI, telecommunications, and enterprise technology sectors, the company remains positioned as a key driver of Pakistan’s technology export earnings.
Market observers highlight that the company’s consistent growth in both sales and profitability reflects a solid business model capable of weathering macroeconomic fluctuations. Systems Limited’s strong quarter not only demonstrates resilience but also reinforces the importance of IT services in Pakistan’s economic landscape.
As the company advances into the second half of the year, industry analysts expect its export-led growth to sustain momentum, backed by strong demand for software solutions, enterprise technology, and outsourcing services.