Systems bets big on AI, global expansion

Mettis Global reported that Systems Limited (PSX: SYS) expects to keep expanding, supported by a firm order book, planned acquisitions, new service lines and rising corporate interest in AI. Its two recent purchases, Confiz and BAT Shared Services Center, both performed well on revenue growth in the second quarter, and management sees room to sell more services into their client bases. Through Confiz, the group now reaches North American enterprise accounts directly, and integration synergies are expected in the second half.

The company is also widening its international reach. A UK entity has been formed and leaders hired, with Britain intended as a base for continental Europe. In Asia Pacific, earlier investments are producing results in Vietnam, Malaysia and Indonesia, and a delivery centre in Malaysia is under review. The Middle East unit has held up despite regional geopolitical developments. At home, the Pakistan business has swung from losses to profit, and management aims to narrow the margin gap with overseas operations.

Over the half year to June 30, 2026, group revenue climbed 35.3 per cent to Rs49.72 billion, while after-tax profit grew 17.4 per cent to Rs6.05 billion. The company credited the gains to acquired and organic growth plus efficiency gains, despite wage and fuel inflation and rupee appreciation hitting its mainly foreign-currency revenue base. Management sees the group well placed for AI-driven demand ahead.