LAHORE: IT giant Systems Limited closed the six months ended June 30, 2026, with consolidated revenue of Rs49.72 billion, up 35.3 percent from Rs36.74 billion in the same period last year. Gross profit jumped 36.6 percent to Rs12.69 billion. Operating profit climbed 28.6 percent, reaching Rs6.54 billion.
Systems Limited Revenue Surges
Net profit increased at a much slower pace, rising 17.4 percent to Rs6.05 billion. Blame the rupee. It traded near 283 to the dollar in June last year; twelve months on, it's sitting closer to 278. That's not a huge move on paper, but for a company pulling over 90 percent of its revenue from overseas clients, it matters. Last year's books carried a Rs528 million exchange gain. This year, that flipped into a Rs158 million loss. That created a nearly Rs686 million year-on-year swing in currency-related income and weighed heavily on earnings.
The second quarter alone tells the same story in miniature. Revenue for the three months ended June 30 rose 37.9 percent to Rs25.74 billion, from Rs18.66 billion a year earlier. Net profit, by contrast, grew just 14.1 percent, reaching Rs3.02 billion against Rs2.65 billion. The gap mirrors the half-year pattern, although the company did not separately quantify the currency impact on second-quarter profit in the directors' review.
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CEO Asif Peer does not portray the result as a setback in the directors' review. Wages and fuel costs increased without a currency cushion, yet Systems Limited broadly protected its margins. He credits organic growth, the Confiz and BAT Shared Services deals, and internal cost discipline for holding the line. Basic earnings per share reached Rs3.95, up from Rs3.52, a 12.2 percent increase. That growth looks respectable in isolation but remains well below the rise in revenue.
Standalone Profit Declines
The unconsolidated numbers make the same point more bluntly. Standalone revenue rose 19.2 percent to Rs25.9 billion. Net profit went the other way entirely, falling 13.7 percent to Rs3.46 billion from Rs4.01 billion. The exchange-rate reversal was sharper here too a Rs561 million gain last year became a Rs140 million loss this year. The company also earned less interest income after settling intercompany loans.
BFSI still anchors the business, while Technology and Retail & CPG recorded the fastest growth, largely because of the Confiz merger. Middle East and Africa remains the largest source of revenue and segment profit, while North America ranks second. Pakistan, by design, stays under 15 percent of the total management has kept it that way deliberately.
Expansion Plans Take Shape
Where does this go from here? Management expects Confiz to unlock new business across North American enterprise accounts. The company plans to use its newly established UK operation as a base for wider European expansion. Vietnam, Malaysia and Indonesia are showing early traction. Management also expects the UAE's push toward AI-driven government operations to support demand across its Gulf business. The domestic Pakistan business has also moved from a loss into profit.
One point emerges clearly from Systems Limited's half-year result: even modest rupee appreciation can suppress the reported earnings of an export-heavy company, regardless of how quickly its underlying business expands.