Pakistan’s Largest Listed Technology Company: Systems Limited Posts EPS Of Rs2.05 As Net Revenue Surges To Rs23.98 Billion With A Lower Effective Tax Rate Of 9.1% And Stable Gross Margins At 25.18% Signalling Operating Discipline Beneath The Growth
According to ProPakistani and Mettis Global, Systems Limited (PSX: SYS), Pakistan’s largest listed technology company, reported a profit after tax of Rs3.03 billion for Q1 2026, translating into earnings per share of Rs2.05, compared with a profit of Rs2.5 billion and EPS of Rs1.71 in the same period last year.
Net revenue increased 33% year-on-year to Rs23.98 billion. Growth was led by strong performance in the retail segment, which expanded 70%, followed by technology services at 58.4%, telecom at 41.5%, and BFSI at 22.5%. Gross profit expanded 32.71% to Rs6.04 billion with gross margins holding firm at 25.18%; essentially flat year-on-year, indicating that top-line growth was not achieved at the expense of margins.
Profitability improved primarily due to stronger export performance and the consolidation of its recent acquisition of Confiz from January 2026 onward. The company reported a lower effective tax rate of 9.1%, down from 14.5% in the same period last year. Finance costs rose 44% to Rs129 million on higher short-term borrowings, and operating expenses outpaced revenue growth at 40.33%; a flag for analysts to watch.
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