Systems Limited reports 46% jump in 9MFY25 earnings

October 27, 2025 (MLN): Systems Limited (PSX: SYS) shared its financial results for the nine months ended September 30, 2025, posting a profit after tax (PAT) of Rs7.94bn,a robust 46% YoY increase compared to Rs5.43bn in the same period last year.

Earnings per share rose to Rs5.42 from Rs3.71 in 9MFY24.

The company’s revenue from contracts with customers reached Rs57.42bn, marking a 19% YoY growth, supported by sustained demand across local and international IT services.

Meanwhile, gross profit climbed 33% YoY to Rs15.42bn, as gross margins expanded on account of improved efficiency and a favorable revenue mix.

Operating profitability remained strong, with operating profit rising 33% YoY to Rs8.46bn.

Total operating expenses (excluding cost of sales) stood at Rs6.97bn, up 34% YoY, mainly due to higher selling and administrative costs associated with business expansion.

Other income surged to Rs704m, providing additional support to bottom-line growth, while finance costs fell 36% to Rs246m, showing improved working capital management.

After accounting for a Rs566m levy and Rs319m in taxes, Systems Limited reported profit before tax of Rs8.26bn, representing a 43% YoY increase.

The Banking, Financial Services (BFS) vertical continued to be the largest revenue contributor, supported by improved margins. The Telecom (Telco) segment remained the fastest-growing, while Retail and Technology emerged as the most profitable segments.

Management reaffirmed its strategic focus on BFS and Telco, where several AI-driven use cases are being deployed to accelerate digital transformation initiatives.

Geographically, Systems posted growth across all five operating regions. After a slowdown last year, APAC has rebounded strongly, while the MEA region continues to deliver robust growth led by enterprise accounts and strategic partnerships.

MEA clients increasingly recognize Systems as a specialized delivery and supply center, particularly within the AI and cloud ecosystems.

A major highlight for the coming quarter is the commencement of Systems’ partnership with British American Tobacco (BAT), marking a key expansion of its global shared services operations.

The company is also actively pursuing large-scale digital transformation deals, strategic partnerships, and M&A opportunities, particularly in Europe and the United States, as part of its strategy to drive inorganic growth and broaden its global footprint.

Furthermore, Systems plans to establish a subsidiary in the United Kingdom, providing a direct operational presence to strengthen market access, leverage intellectual property, and expand enterprise client relationships. It will also deepen collaboration with its associated UK company to enhance delivery capabilities across Europe and North America.

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