Systems (SYS) Q2 2025 earnings summary

Executive summary

• H1 consolidated revenue was Rs 36,739.1m (+18.4% YoY; $130.97m) and operating profit Rs 5,083.4m (+31.7%; $18.12m), the highest-ever H1 operating profit in absolute terms.

• H1 net profit rose 58.9% to Rs 5,152.4m, partly due to a favorable currency swing; profit after tax grew 34.2% excluding currency effects.

• Q2 revenue rose 16% YoY to $66.0m and EBITDA increased 24% to $10.8m.

• Productivity, billing efficiency and cost optimization supported results despite fewer billable days because both Eid festivals fell in the period.

• Strategic priorities include AI-enabled services, verticalization, expansion in current geographies and selective M&A to grow export revenue.

Financial highlights

• H1 2021–2025 CAGRs were 33% for revenue and 17% for operating profit in USD; in PKR, the respective CAGRs were 54% and 35%.

• H1 EBITDA was PKR 5,949m and net profit excluding exchange gain/loss impact was PKR 4,624m; PKR CAGRs were 37% and 31%, respectively.

• Consolidated gross profit increased 29.6% YoY to Rs 9,285.3m; basic and diluted EPS rose to Rs 3.52 and Rs 3.49, respectively.

• Standalone revenue grew 20.3% to Rs 21,718.5m and operating profit 28.3% to Rs 3,334.6m; standalone profit after tax rose 63.2% to Rs 4,009.9m.

• Consolidated operating cash flow was Rs 2,540.6m versus Rs 1,067.5m in H1 2024; period-end cash and bank balances were Rs 8,186.1m.

Outlook and guidance

• Management cited a healthy backlog, strong new bookings and existing-customer demand, but gave no numerical year-end or FY2026 growth targets.

• An AI-first approach includes internal automation, workforce training, Systems GenAI Studio and industry-specific AI use cases; large-scale deals, partnerships and M&A are priorities.

• Pakistan operations are phasing out unprofitable contracts; Pakistan was near breakeven in H1, with a return to profitability targeted by year-end.

• APAC opportunities are recovering, MEA and GCC are on a strong growth trajectory, and the US and Europe are expected to maintain steady momentum.

• Hiring demand is expected to continue; utilization remains an improvement area, and AI is widening hiring beyond traditional computer-science profiles.