Karachi: Systems Limited reported its financial results for the second quarter of 2026, revealing a 14% year-over-year increase in earnings per share to Rs2.05, aligning with market expectations. The company achieved a consolidated profit after tax of Rs3 billion, with net sales reaching Rs25.7 billion, marking a 38% increase from the previous year.

According to JS Global, the growth in revenue was primarily driven by strong performances in the Middle East and Pakistan segments, as well as a 39% increase in the North American region, attributed to the recent acquisition of Confiz. Systems Limited anticipates that the full benefits of this acquisition will materialize in the latter half of 2026. Gross margins for the quarter remained consistent with the previous quarter at 26%, with notable stability across various regions.

Despite the growth in revenue, the company experienced a decline in other income by 33% quarter-over-quarter and 53% year-over-year, totaling Rs227 million. This decrease was largely due to lower interest income following the settlement of inter-company loans. Additionally, the company reported a 30% increase in selling and distribution costs, amounting to Rs882 million, and a 42% rise in administrative costs to Rs2 billion.

The finance cost for the second quarter surged by 128% year-over-year and 35% quarter-over-quarter to Rs174 million, bringing the total for the first half of 2026 to Rs304 million, an 83% increase from the previous year. The effective tax rate rose to 13% from 11% in the same quarter last year and 9% in the first quarter of 2026. Despite these financial fluctuations, the company maintains a positive outlook on its future performance.