Aeries Technology (NASDAQ:AERT) reported results for its third quarter of fiscal year 2026, highlighting stable revenue alongside a sharp improvement in profitability and cash generation, according to management commentary on the company’s earnings call.
Chief Executive Officer Ajay Khare said the quarter ended December 2025 was “another strong quarter” for the company, citing stable revenue, improving margins, and “disciplined execution,” with a significant improvement in adjusted EBITDA versus the prior-year period. Khare also pointed to continued delivery performance across India and Mexico and said the quarter benefited from efficiency improvements, scaled global capability center (GCC) operations, and increased adoption of AI and automation capabilities across new and existing clients.
Third-quarter financial performance
- Revenue: $17.5 million, compared with $17.6 million in the prior-year quarter
- Net income: $1.2 million, versus $2.0 million in Q3 fiscal 2025 (management attributed the change to “non-operating and below EBITDA items”)
- Adjusted EBITDA: $2.5 million, compared with an adjusted EBITDA loss of $2.0 million in the prior-year period
- Gross margin: 19.1%
- Adjusted EBITDA margin: 14.1%
- Operating cash flow: $2.4 million, positive for the third consecutive quarter
Chief Financial Officer Daniel Webb said the quarter made “underlying operating improvements” more visible in reported results, as profitability and cash generation improved meaningfully despite revenue being broadly stable year over year. Webb attributed the margin expansion to improved delivery utilization, automation-driven productivity, and continued cost discipline, adding that incremental efficiency gains translated into profitability while maintaining service quality across India and Mexico.
Operating drivers: automation, AI, and GCC delivery
Khare said the company’s results reflected stability across its client base and “strong delivery performance” in India and Mexico. He also emphasized continued momentum in the company’s AI-led transformation and GCC practices, referencing announcements during the quarter related to automation progress, AI implementation advancements, and analyst-firm recognition for GCC setup capabilities.
Khare described the combination of Aeries’ GCC delivery model and targeted AI execution as supportive of revenue visibility and long-term margin expansion. He added that the company continues to see engagement across the private equity ecosystem and multiple industry sectors, and that delivering “measurable value” to a portfolio company or enterprise client can create additional opportunities within broader portfolio networks.
Client ramp-ups and delivery footprint
Management noted that several client deals signed during the year remain in ramp-up phases. Khare said he expects a more meaningful contribution from those engagements in fiscal 2027 as they move toward steady state. He also said Aeries’ nearshore presence in Mexico continues to scale, and that recent engagements within the private equity ecosystem have strengthened the company’s long-term positioning.
Khare added that some client relationships have matured into multi-year engagements across multiple business functions, which he said highlights the durability and recurring nature of the company’s model. He also pointed to the stability of delivery teams and noted the company received its third Great Place to Work certification, which he said reflects talent retention and engagement across core delivery locations.
Updated guidance and fiscal 2027 outlook
Webb said Aeries increased its full-year fiscal 2026 adjusted EBITDA guidance to $7 million to $8 million, from prior guidance of $6 million to $8 million. He said the update reflects strong operating performance, improved delivery utilization, and ongoing benefits from automation-driven productivity initiatives.
Looking ahead, management provided an outlook for fiscal 2027 (April 2026 through March 2027). Khare said the company expects fiscal 2027 revenue of $80 million to $84 million and adjusted EBITDA of $10 million to $12 million. He said a significant portion of next year’s revenue is anchored in multi-year contracts already signed, including GCC expansions and AI implementations transitioning into production, alongside operating leverage the company is seeing in the business.
Webb said much of the fiscal 2027 outlook is supported by signed contracts with clients actively expanding with Aeries, and added that many programs contributing to the outlook are already operational or in advanced ramp-up stages, which he said lessens execution risk. He also said the company’s balance sheet remains healthy and that Aeries is positioned to continue executing its strategy while improving profitability and cash flow as the business scales.
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.
