Systems Limited (SYS) posted a profit after tax of Rs. 11,041 million for CY25 (EPS: Rs. 7.49), marking a 48 percent increase compared to Rs. 7,460 million (EPS: Rs. 5.06) in CY24. The company also announced a final cash dividend of Rs. 2.00 per share, consistent with the previous year.
In the fourth quarter, PAT climbed 60 percent year-on-year to Rs. 3,073 million (EPS: Rs. 2.09), reflecting strong operational performance and new business partnerships.
Strong Revenue Growth Across Key Segments
Net sales for the full year reached Rs. 80,392 million, up 19 percent from the prior year. Growth was driven by:
- Telecommunications: up 31 percent
- Technology: up 18 percent
- BFSI: up 17 percent
By region, the Middle East contributed the largest share of revenue at 59 percent, followed by North America at 18 percent, Pakistan at 14 percent, Europe at 5 percent, and APAC at 4 percent. Quarterly revenue for 4QCY25 rose 20 percent to Rs. 22,973 million, boosted by operations under the strategic partnership with British American Tobacco, which began in November 2025.
Margins and Efficiency Improvements
The company’s gross margin for CY25 improved to 28 percent from 24 percent in CY24, reflecting better operational efficiency. In 4QCY25, gross margins expanded to 30 percent, up 718 basis points compared to the same quarter last year.
Other income in 4QCY25 fell 65 percent year-on-year to Rs. 148 million, impacted by adverse currency movements, while annual other income increased 17 percent due to higher exchange gains. Finance costs in 4QCY25 rose 13 percent to Rs. 91 million as short-term borrowings increased. The effective tax rate in the quarter was 15 percent, up from 2 percent in the same period last year.
Analyst Outlook
Analysts retain a “BUY” rating on SYS, with projected price-to-earnings multiples of 11.5x for CY26 and 8.7x for CY27, reflecting confidence in continued growth.
