Systems Limited Shines with Strong 2Q FY2025 Results

Systems Limited (SYS), Pakistan’s largest IT company, has once again shown why it’s a leader in the tech sector. In its second quarter of 2025, SYS reported strong growth in earnings and revenues, proving its ability to keep expanding despite challenges in the broader economy.

Earnings jump 59%

SYS posted a profit of PKR 2.7 billion for the quarter, which equals an earnings per share (EPS) of PKR 1.8. This is a 59% increase compared to the same quarter last year. On top of that, profits were also up 6% compared to the last quarter, showing steady momentum.

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What’s driving the growth?

• Higher Margins: SYS improved its gross margins from 22.5% to 25.4% this quarter. Lower inflation and a relatively stable currency helped reduce costs.
• Revenue Growth: Sales rose 18% year-on-year to PKR 18.7 billion, driven by growth across all major regions, including Pakistan, the Middle East, Europe, North America, and Asia-Pacific.
• Exchange Gains: A weaker rupee gave SYS additional income through foreign exchange gains, boosting “other income” by 184% YoY.

Global expansion is paying off

SYS is not just a local IT player anymore. Its operations across the Middle East, Europe, North America, and Asia-Pacific all posted healthy growth. For example:

• Middle East revenue rose 17% YoY
• Pakistan revenue rose 38% YoY
• Europe grew 25% YoY
• Asia Pacific grew 14% YoY

This geographic spread is helping SYS build a strong, diversified business model.

Looking ahead

Analysts remain positive on SYS, rating it a “Buy”. The company is currently trading at a 2025 Price-to-Earnings (P/E) of 18.4x, expected to drop to 13.7x in 2026 as earnings grow further.

In simple terms, SYS is becoming more profitable and expanding its footprint globally while staying efficient at home. For long-term investors, it remains one of the strongest names in Pakistan’s technology sector.

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Source: Topline Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →