Systems (SYS) Q3 2026 earnings summary

Executive summary

• 9M consolidated revenue rose 33.2% YoY to Rs 76,491.8m and profit after tax rose 14.4% to Rs 9,084.9m, despite currency appreciation and cost pressures.

• Standalone revenue grew 19.1% to Rs 39,392.9m, while operating profit fell 6.4% and net profit fell 16.7%, reflecting offshore wage and fuel inflation, exchange losses, and lower related-party interest income.

Financial highlights

• Consolidated gross profit increased 24.6% to Rs 19,319.1m; operating profit increased 14.0% to Rs 9,736.7m for 9M 2026.

• Q3 consolidated revenue was Rs 26,775.9m versus Rs 20,680.2m YoY; operating profit was Rs 3,197.6m versus Rs 3,456.8m, while profit after tax was Rs 3,034.5m versus Rs 2,791.8m.

• Standalone 9M gross profit was Rs 8,880.7m versus Rs 8,911.8m; net profit was Rs 4,993.7m versus Rs 5,994.7m.

Outlook and guidance

• A healthy backlog, new service lines, strong pipeline and new high-quality client wins underpin confidence in continued strategic growth and next-year growth prospects.

• AI transformation budgets across a base of 300+ customers span data engineering, integration and applications; internal AI adoption and workforce training aim to improve productivity and delivery.

• Confiz and BAT Shared Services are growing revenue; integration is on plan, with synergies building from H2 and cross-sell/up-sell opportunities expected to expand.

• Expansion priorities include North American enterprise relationships, a UK hub for Europe, APAC growth, and continued investment in Egypt, Malaysia, Jordan and Costa Rica delivery capacity.

• M&A opportunities, mainly in the West, are being explored to expand in the US and Europe, diversify the portfolio and reduce geopolitical exposure.