Aeries Technology (NASDAQ:AERT) reported higher revenue, profitability and operating cash flow for the first quarter of fiscal 2027, as the company said its operating model delivered greater leverage and several client programs moved into steady-state operations.
For the quarter ended June 30, 2026, revenue rose 43% year over year to $21.9 million from $15.3 million. Chief Executive Officer Ajay Khare said the company’s results reflected progress in “strengthening our operating model, improving profitability, and building a more scalable business.”
Margin Expansion and Cash Generation
Gross profit increased to $6.4 million, and gross margin improved to 29.2%, according to Khare. Selling, general and administrative expenses were essentially unchanged at $3 million despite the increase in revenue.
Khare said the results demonstrated the operating leverage the company has built into its business and its ability to convert revenue growth into stronger profitability and cash generation.
The company also said a previously disclosed customer buyout contributed $2.7 million to revenue and profitability during the quarter.
Cash generation enabled Aeries to strengthen its balance sheet and continue settling legacy obligations and related costs associated with its business-combination transaction, Khare said. During the quarter, the company purchased more than 10% of its outstanding common shares and completed its previously announced one-for-eight share consolidation.
AI Transformation Strategy
Aeries said its client relationships are expanding beyond managed operations into AI transformation, enterprise operations, automation and optimization initiatives. The company operates across India and Mexico and said several engagements signed during fiscal 2026 entered steady-state operations in the latest quarter, supporting revenue growth and longer-term customer relationships.
Khare said enterprises are increasingly moving from AI experimentation toward production deployments, creating demand for providers that can help clients progress from strategy and pilot projects to enterprise-wide implementation and ongoing operations.
To address that opportunity, the company recently launched AxAI, an agentic AI solution offering based on its forward-deployed engineering model. Alongside AeriesOne, its AI-native enterprise operations platform, Aeries said the offerings provide capabilities across AI strategy, engineering, deployment and managed operations.
“By combining AI innovation with managed operations, we help organizations create measurable business outcomes and long-term value creation,” Khare said.
Fiscal 2027 Outlook Reaffirmed
Aeries reaffirmed its fiscal 2027 guidance, calling for:
- Revenue of $80 million to $84 million.
- Adjusted EBITDA of $10 million to $12 million.
Khare said the company’s outlook is supported by multi-year customer engagements, expanding work with existing customers and programs that are advancing into steady-state operations. The company’s stated priorities for the remainder of the year include disciplined execution, profitable growth, further margin improvement, cash generation and expanded AI-led customer engagements through AxAI and AeriesOne.
About Aeries Technology (NASDAQ:AERT)
Aeries Technology, Inc operates as a professional services and consulting partner in the North America, Asia Pacific, and internationally. The company offers management consultancy services for private equity sponsors and their portfolio companies, including software solutions, product management, IT infrastructure, information and cyber security, ERP and CRM platform management, business process management, and digital transformation services. The company was founded in 2012 and is headquartered in Singapore.
