Systems Limited posted a profit after tax of Rs. 6.05 billion, or Rs. 4.11 per share, in the first half of calendar year 2026, compared with Rs. 5.15 billion, or Rs. 3.50 per share, in the same period last year, marking a 17 percent year-over-year increase.

The improvement in profitability was primarily driven by stronger exports, according to a report by Arif Habib Limited (AHL).

According to AHL, net sales increased 35 percent year over year to Rs. 49.72 billion in 1H CY26 from Rs. 36.74 billion in the same period last year.

The growth was led by Technology, which rose 61.5 percent, followed by Retail and CPG at 53.5 percent, Telco at 36.8 percent, Others at 29.5 percent, BFSI at 25.5 percent and Public Sector at 20.9 percent.

Regionally, growth was strongest in Asia Pacific at 84.6 percent, followed by North America at 36.4 percent, the Middle East and Africa at 36.1 percent, Pakistan and Others at 24 percent, and Europe at 22.9 percent.

Gross profit increased 37 percent year over year to Rs. 12.69 billion from Rs. 9.29 billion, while the gross profit margin remained broadly stable at 25.52 percent compared with 25.27 percent in 1H CY25.

Other income declined 31 percent to Rs. 567 million from Rs. 821 million, with the company recording exchange losses as the rupee appreciated against the US dollar, with the exchange rate moving from Rs. 283 to Rs. 278.

Finance costs increased 83 percent year over year to Rs. 304 million due to higher borrowings, while the effective tax rate increased to 11 percent in H1 2026 from 9 percent in the same period last year.