Systems Limited posts record Rs5.1bn profit in 1H2025
Pakistan’s largest IT exporter reports 59% earnings growth on currency gains while eyeing expansion through acquisitions and Saudi market rebound.
ISLAMABAD: Systems Limited (SYS) has reported the highest operating profit in its history, posting Rs5.1 billion for the first half of 2025, as the IT company benefitted from strong exchange gains due to Pakistani rupee depreciation. The result represents an 18% rise in revenue and a 59% increase in earnings compared with the same period last year.
Management disclosed the results during a corporate briefing, highlighting both the record performance and a series of strategic initiatives aimed at strengthening the company’s long-term growth. SYS has yet to release full details of its acquisition of BAT SAA Services but confirmed the newly acquired business will be run independently under the Systems Group umbrella. The company described the deal as an “entirely new growth avenue” and indicated that further acquisitions are being actively explored, with a focus not only on revenue enhancement but also on expanding its pool of technology talent.
The briefing also revealed that SYS has exited several loss-making contracts in the domestic market, allowing the Pakistan segment to post positive gross margins in the first half of the year. Management expects the last of its unprofitable local contracts to be terminated by the end of 2025, which should further strengthen margins. Despite this shift, the company does not plan to withdraw from Pakistan, with the domestic business forecast to continue contributing 15% to 20% of total revenue.
Looking abroad, Systems Limited remains focused on Saudi Arabia as a key growth driver. Management acknowledged signs of a slowdown in the Kingdom but described it as cyclical, projecting a rebound in the months ahead. The Middle East, particularly Saudi Arabia and the UAE, has become an increasingly important market for Pakistani IT exporters in recent years, as governments in the region invest heavily in digital transformation programs.
The company also provided a breakdown of its workforce composition, reporting that 83% of its staff remain based in Pakistan, while 11% are located in the United Arab Emirates and 2.5% in Egypt. The remainder are spread across Qatar, Saudi Arabia and other Asia-Pacific markets. Attrition has fallen to around 15–18%, down from higher levels seen in previous years. SYS said retention is being strengthened through employee stock ownership plans, training schemes and career development programs, while reiterating that Pakistan will remain its main hub for human capital.
Financially, the company’s revenue base remains dominated by overseas earnings, with 93% of revenue generated in foreign currency, primarily US dollars. On the cost side, 58% are incurred in Pakistani rupees and 42% in foreign currencies, giving SYS a natural hedge against exchange rate fluctuations. The rupee’s depreciation against the dollar has therefore boosted earnings, a trend observed across Pakistan’s export-oriented sectors.
Systems Limited also emphasized its global credentials as a technology partner of major international firms including Microsoft, IBM, Salesforce, Amazon and Temenos. The company is part of Microsoft’s prestigious Inner Circle, which recognizes its top 100 global partners, and has won several industry awards for digital transformation services.
Analysts continue to view SYS as a strong growth stock in Pakistan’s IT sector. Market reports maintain a “buy” stance on the company, noting that it currently trades at a 2025E/2026F price-to-earnings ratio of 19.0x and 14.2x respectively. The valuation suggests investors expect robust earnings expansion as Systems pursues new acquisitions and benefits from global technology demand.
Founded in 1977, Systems Limited has grown from a domestic software house into Pakistan’s largest IT services exporter, with a global client base across banking, retail, telecoms and the public sector. Its latest results highlight not only the resilience of Pakistan’s IT industry amid macroeconomic challenges but also the sector’s role as a vital source of foreign exchange inflows.
Management concluded the briefing by stressing that despite short-term headwinds, the company remains confident about its growth trajectory. With a record profit in 1H2025, a pipeline of acquisition opportunities, and a diversified revenue base, Systems Limited is positioning itself as a key player in the regional technology services market.