SYS Reports Strong Earnings Growth, Announces Strategic Acquisition

Karachi: System Limited (SYS) conducted its corporate briefing today to discuss the third quarter results for the calendar year 2025 and its future outlook. The company reported a notable increase in earnings per share (EPS) of Rs1.90, marking a 46% increase year-on-year.

SYS’s revenue showed a 19% growth year-on-year for the first nine months of calendar year 2025. Gross margins improved by 3 percentage points year-on-year, reaching 26%. The MENA region contributed significantly, with a 19% year-on-year increase, accounting for 59% of total revenues during this period.

The management highlighted the strategic acquisition of Confiz Pakistan (Pvt) Ltd, aimed at strengthening SYS’s presence in high-value enterprise markets, particularly in North America and the European Union. The acquisition is structured as a 100% share swap with no cash consideration, expected to dilute SYS shareholders by approximately 3.8% to 4%, pending regulatory approvals.

This move grants SYS access to a high-quality client base, including Fortune 100 customers, and enhances its specialization in the retail and consumer packaged goods verticals. Confiz’s higher dollar revenue per employee is expected to result in stronger profit margins in America and the EU compared to the MENA region.

The management plans to integrate Confiz operationally by January 1, 2026, assuming all necessary approvals are obtained. The acquisition poses minimal integration risk due to limited overlap between the client bases of SYS and Confiz.

Domestically, SYS has exited most loss-making contracts and no longer considers its domestic business as loss-making. The management expressed confidence in the continuation of the Final Tax Regime and optimism for extending existing IT sector tax incentives.

Additionally, SYS announced the commencement of operations related to BAT from November 1, 2025, as part of its ongoing business developments.