Aeries Technology Q1 2027 Earnings Report

Aeries Technology EPS Results

• Actual EPS: $0.27
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Aeries Technology Revenue Results

• Actual Revenue: $21.92 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Aeries Technology Announcement Details

• Quarter: Q1 2027
• Date: 8/10/2026
• Time: Before Market Opens
• Conference Call Date: Monday, August 10, 2026
• Conference Call Time: 8:00AM ET

Aeries Technology (NASDAQ:AERT) 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.

Aeries Technology Q1 2027 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q1 revenue rose 43% year over year to $21.9 million, while operating income increased to $3.4 million from $0.8 million and net income reached $2.2 million.
• Positive Sentiment: Operating cash flow increased to $4.8 million, marking the company’s sixth consecutive quarter of positive operating cash flow; Aeries also repurchased more than 10% of its outstanding common shares.
• Positive Sentiment: Gross margin improved to 29.2% and SG&A remained essentially flat at $3 million despite strong growth, highlighting improving operating leverage.
• Positive Sentiment: Aeries launched AxAI, an agentic AI offering designed to complement its AeriesOne platform and help clients move AI projects from experimentation into enterprise-scale deployment and managed operations.
• Neutral Sentiment: Management reaffirmed fiscal 2027 guidance for revenue of $80 million–$84 million and adjusted EBITDA of $10 million–$12 million, while noting that the previously disclosed customer buyout contributed $2.7 million to quarterly revenue and profitability.

Presentation

[Operator]

Good morning, and welcome to Aeries Technology's earnings conference call for the quarter ended June 30th, 2026, Q1 fiscal year 2027. Joining us today is Aeries Chief Executive Officer, Ajay Khare. The call will review the company's results for the quarter ended June 30th, 2026, and discuss the strategic priorities shaping the next stage of its growth. Before we begin, please note that today's discussion contains forward-looking statements, including Aeries' expectations regarding future performance and market opportunities. Actual results may differ materially. Please refer to the company's filings with the U.S. Securities and Exchange Commission and today's earnings release for a full discussion of the risks and uncertainties associated with these statements. Additionally, today's call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are available in today's earnings release and on the company's website.

[Operator]

With that, I will now turn the call over to Ajay Khare. Please go ahead.

[Ajay Khare, CEO at Aeries Technology]

Thank you, Kelly. Good morning, and thank you for joining our first quarter fiscal year 2027 earnings call. The quarter ended June 30th, 2026, was a strong start to our fiscal 2027 and reflects the continued progress we have made in strengthening our operating model, improving profitability, and building a more scalable business. The operating model we have built over the past year is now delivering results across the three dimensions that matter most: growth and profitability, positioning, and cash generation. These three themes define the quarter. First, we delivered strong financial performance. Revenue increased 43% year-over-year to $21.9 million. Income from operations increased to $3.4 million from $0.8 million in the prior year quarter. Net income increased 32% to $2.2 million and operating cash flow increased to $4.8 million from $1.4 million in the prior year quarter.

[Ajay Khare, CEO at Aeries Technology]

These results demonstrate the operating leverage we have built into the business and our ability to translate growth into stronger profitability and cash generation. Second, we continued advancing how we position Aeries in the market. We help enterprises create value through AI transformation and manage operations. Clients increasingly engage us not only to operate business functions, but to help transform enterprise operations through AI, expanding both the scope of our engagement and the value we create. Third, we continued converting the performance into cash. We generated $4.8 million of operating cash flow during the quarter, our sixth consecutive quarter of positive operating cash flow. Our strong cash generation enabled us to strengthen the balance sheet, continue settling legacy obligations associated with our business combination transaction, and related costs. We purchased more than 10% of our outstanding common shares and completed previously announced one-to-eight share consolidation during the quarter.

[Ajay Khare, CEO at Aeries Technology]

These results reflect the operating discipline we established throughout fiscal 2026 and demonstrate strong operating leverage, improved cash generation, and consistent execution across our operations in India and Mexico. Strategic progress. During the quarter, client engagements continued to expand beyond managed operations to include AI transformation, enterprise operations, automation, and optimization initiatives. This reflects our continued evolution into AI transformation enterprise operations provider, expanding both the scope of our client engagement and the value we deliver. Several engagements signed during fiscal 2026 progressed into steady-state operations during this quarter, contributing to revenue growth and strengthening our long-term client relationships across India and Mexico. AI and transformation. We believe AI transformation will become one of the most significant drivers of enterprise value creation over the coming decade.

[Ajay Khare, CEO at Aeries Technology]

The market is moving from AI experimentation to production, creating demand for partners that can help organizations move from strategy and pilots to enterprise-wide deployment and ongoing operations. To address this opportunity, we recently launched AxAI, our agentic AI solution offering built around our forward deployed engineering model. Together with AeriesOne, our AI-native enterprise operations platform, we now provide an integrated capability spanning strategy, engineering, deployment, and managed operations. This enables enterprises to assess, build, deploy, and operate AI solutions at scale while moving from AI experimentation to production. By combining AI innovation with managed operations, we help organizations create measurable business outcomes and long-term value creation. That remains our objective: helping enterprises create value through AI transformation and managed operations. Moving back to financial highlights. For the quarter, revenue of $21.9 million compared with $15.3 million in the prior year quarter, an increase of 43%.

[Ajay Khare, CEO at Aeries Technology]

The previously disclosed customer buyout contributed $2.7 million to revenue and profitability during the quarter. Gross profit increased to $6.4 million, with gross margin improving to 29.2%. SG&A expenses remain essentially flat at $3 million, despite strong revenue growth, demonstrating the operating leverage in our business. Income from operations increased to $3.4 million. Net income of $2.2 million, representing an increase of 32% from $1.7 million in the prior year quarter. Operating cash flow increased to $4.8 million, making our sixth consecutive quarter of positive operating cash flow. These results reinforce our confidence in the outlook for the remainder of fiscal 2027. Outlook. Looking ahead, we remain well-positioned for the remainder of fiscal 2027. Our confidence in the business continues to be supported by multi-year client engagements, expanding relationships with existing customers, and programs progressing into steady-state operations.

[Ajay Khare, CEO at Aeries Technology]

We are reaffirming our fiscal 2027 guidance of revenue between $80 million-$84 million and adjusted EBITDA between $10 million-$12 million. Our priorities remain unchanged: disciplined execution, profitable growth, and continued margin improvements, strong cash generation, and expanding AI-led client engagement through AxAI and AeriesOne. We believe the operating discipline we have built over the past year, combined with our AI transformation strategy, positions Aeries well for long-term growth and continued enterprise value creation. Thank you for joining us today.

[Operator]

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

Participants

Executives

• Ajay Khare, CEO