Systems’ acquisition of Confiz to be a share swap

Systems Ltd’s latest results underline a familiar story for Pakistan’s largest listed IT exporter: strong top-line momentum driven by overseas clients, paired with constant margin-management work as local costs rise and currency tailwinds fade.

At the nine-month mark of calendar 2025, management told analysts the company posted profit after tax of Rs7.94 billion (EPS Rs5.42), up 46% year-on-year, while 3QCY25 profit after tax rose 28% YoY to Rs2.79 billion (EPS about Rs1.9). The quarter’s improvement was attributed to higher technology services exports and better gross margins.

The detailed quarterly picture in the briefing notes shows 3QCY25 net sales of Rs20.68 billion (up 20% YoY) and a sharp improvement in gross margin to 30%, versus 25% in the same quarter last year. Operating profit for the quarter climbed 47% YoY, while EBITDA rose 44% YoY, supporting the view that Systems is still expanding profitability as it scales export delivery.

But the most market-moving disclosure from the briefing was not in the income statement – it was in the fine print around Systems’ planned acquisition of Confiz.