Systems Limited (PSX: SYS) has reported an exceptional financial performance for the year ended December 31, 2025, with consolidated net profit surging 48% to Rs11.04 billion, up from Rs7.46 billion in the previous year. The company’s basic earnings per share (EPS) jumped proportionately to Rs7.52, compared to a restated Rs5.11 in the corresponding period of 2024.
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The stellar bottom-line growth was driven by robust double-digit expansion in top-line sales and healthy margin improvements. The company’s net revenue from contracts with customers grew by 19% year-on-year to Rs80.39 billion from Rs67.47 billion.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Profit | Rs11.04bn | Rs7.46bn | +48% |
| EPS | Rs7.52 | Rs5.11 | +47% |
| Net Revenue | Rs80.39bn | Rs67.47bn | +19% |
| Gross Profit | Rs22.41bn | Rs16.16bn | +39% |
| Operating Profit | Rs12.01bn | Rs8.27bn | +45% |
| Dividend | Rs2/share | – | – |
Revenue and Gross Profit Growth
Crucially, the company demonstrated excellent cost control at the core level. The cost of revenue increased by only 13% to Rs57.98 billion. Because top-line growth outpaced the rise in direct costs, gross profit jumped a massive 39% to Rs22.41 billion from Rs16.16 billion in the prior year, demonstrating significant margin expansion.
Operating Expenses
On the operating side, overheads expanded alongside the growing business. Administrative expenses climbed 29% to Rs6.23 billion, while selling and distribution expenses rose 25% to Rs3.10 billion. The company also booked a 100% surge in impairment losses on financial assets, which hit Rs971.49 million, and saw other operating expenses spike to Rs23.91 million.
Interestingly, research and development expenses were trimmed by 11% to Rs82.32 million. Despite the higher overhead burden, the sheer strength of the gross profit expansion pushed operating profit up by 45% to Rs12.01 billion.
| Expense Category | 2025 | 2024 | Change |
|---|---|---|---|
| Administrative Expenses | Rs6.23bn | Rs4.82bn | +29% |
| Selling & Distribution | Rs3.10bn | Rs2.48bn | +25% |
| Impairment Losses | Rs971.49m | Rs485.69m | +100% |
| R&D Expenses | Rs82.32m | Rs92.26m | -11% |
Non-Operating Gains
Below the operating line, Systems Limited found additional tailwinds. Other income grew by 41% to Rs852.22 million. Furthermore, the company successfully reduced its finance costs by 28% to Rs337.45 million and narrowed its share of loss from associates by 39% to Rs72.86 million.
Bottom Line Performance
Boosted by these operational and non-operational gains, profit before taxation and levy surged 50% to Rs12.45 billion. Even after absorbing a 73% higher levy of Rs821.34 million and a 65% higher taxation expense of Rs586.33 million, the company seamlessly secured its Rs11.04 billion consolidated net profit, marking a 48% year-on-year increase.
About Systems Limited
Systems Limited (PSX: SYS) is Pakistan’s leading information technology and business process outsourcing company, providing digital transformation, enterprise solutions, and technology consulting services to clients across the globe. The company has a strong presence in North America, Europe, the Middle East, and Asia.
