Karachi: Systems Ltd is poised to report a significant increase in earnings for the fourth quarter of the calendar year 2025, driven by robust revenue growth and improved margins. The company is expected to achieve a consolidated earnings per share (EPS) of Rs1.95, marking a 41% increase year-on-year, with the full-year EPS anticipated to reach Rs7.3.
According to JS Global, the earnings growth for Systems Ltd is primarily attributed to a 16% year-on-year revenue increase for the fourth quarter and an 18% rise for the entire year of 2025. Additionally, there is a projected 248 basis points improvement in margins over the year. The company is expected to announce a final dividend of Rs1.5.
Revenue for the fourth quarter of 2025 is expected to reach Rs22.2 billion, with growth largely driven by the expansion in the Middle East and North Africa (MENA) and Asia-Pacific (APAC) regions. The MENA region, in particular, is projected to experience an 18% year-on-year growth and is anticipated to remain the largest contributor to the company's revenue, comprising approximately 62% of total revenue.
The investment analysis maintains a Buy recommendation on Systems Ltd, with a discounted cash flow-based target price of Rs205. The company's consistent topline growth, supported by strategic acquisitions and partnerships, underpins this recommendation. The stock trades at a forward price-to-earnings multiple of 10.97x based on projected earnings for 2027.
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