Shares of Aeries Technology, Inc. AERT have declined 15.6% since the company reported results for the fiscal year ended March 31, 2026, underperforming the S&P 500’s 1.7% decline over the same period. Over the past month, Aeries shares have declined 5.2% compared with a 3.1% decline for the broader market, reflecting weaker investor sentiment despite the company’s return to profitability.
Aeries reported earnings per share of 5 cents for fiscal 2026 against a loss per share of 49 cents in fiscal 2025.
Revenues of $70 million remained essentially flat compared with $70.2 million in fiscal 2025.
Net income was $3.5 million, a sharp turnaround from a net loss of $21.6 million in the prior year. Income from operations improved to $4.5 million from an operating loss of $28.8 million a year earlier. Adjusted EBITDA reached $8.3 million compared with a negative $4.7 million in fiscal 2025, while adjusted EBITDA margin expanded to 11.9% from a negative 6.6%.
Aeries Technology, Inc. Price, Consensus and EPS Surprise
Aeries Technology, Inc. price-consensus-eps-surprise-chart | Aeries Technology, Inc. Quote
Other Key Business Metrics
Gross profit increased 3% year over year to $17.3 million from $16.7 million, while gross margin improved to 25% from 24%. Selling, general and administrative expenses declined 72% to $12.8 million from $45.5 million, contributing significantly to the improvement in profitability. Operating cash flow totaled $6.8 million compared with cash used in operations of $1 million in fiscal 2025, marking the fourth consecutive quarter of positive operating cash flow. Cash and cash equivalents increased 77% year over year to $4.9 million.
The company ended fiscal 2026 with more than 40 clients across industries, including e-commerce, telecommunications, healthcare and engineering.
Management Commentary
Chief executive officer Ajay Khare described fiscal 2026 as a year of “meaningful operational progress,” highlighting profitability improvements, cash generation and expansion of the company’s Global Capability Center (GCC) platform. Management emphasized gains from automation-enabled productivity initiatives and the expansion of multi-year GCC engagements across North America, India and Mexico. The company also noted progress in deepening relationships within the private-equity ecosystem, a core target market.
In a follow-up statement, management said demand for AI-enabled GCC operating models is accelerating as private-equity-backed and mid-market companies increasingly seek technology-driven operating structures. The company believes this trend is creating opportunities for further GCC expansion and transformation engagements.
Factors Influencing Results
The improvement in earnings was driven primarily by lower operating expenses, increased operating leverage and automation-led productivity enhancements. The steep decline in SG&A expenses, combined with stable revenue, helped restore profitability and expand margins. The launch of the AeriesOne A1 GCC Platform, which integrates AI-enabled automation into GCC operations, was cited as a key strategic initiative supporting efficiency, scalability and real-time decision-making across client engagements.
At the same time, the company disclosed risks related to client concentration and contract renewals. In its annual report, Aeries noted that it received non-renewal notices from two significant customers, representing an expected annual revenue impact of approximately $4 million and $5.7 million, respectively.
Guidance
Aeries reiterated its fiscal 2027 outlook, projecting revenue between $80 million and $84 million and adjusted EBITDA between $10 million and $12 million. Adjusted EBITDA target suggests continued margin expansion. Management said the forecast is supported by signed contracts, ongoing client expansions and continued demand for GCC-led transformation initiatives.
Other Developments
During fiscal 2026, Aeries launched the AeriesOne A1 GCC Platform, expanding its AI-enabled capabilities across GCC operations. The company also continued to scale its Mexico delivery presence to support multi-country GCC strategies and nearshore-offshore operating models for North American clients.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Aeries Technology, Inc. (AERT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).