Aeries Technology — Second Quarter Fiscal 2027 Earnings Summary

Financial Performance:

• Second-quarter revenue reached $18.1 million, a 4.5% increase year over year from $17.3 million.
• First-half revenue totaled $40.1 million, a 23% increase year over year from $32.7 million, including $2.7 million from a previously disclosed customer buyout recognized in Q1.
• Second-quarter net income was $1.3 million, compared to $0.6 million in the prior-year quarter.
• First-half net income was $3.6 million, compared to $2.3 million in the prior-year period.
• Second-quarter Adjusted EBITDA was $2.1 million (11.6% margin), down from $2.6 million (14.7% margin) in the prior-year quarter.
• First-half Adjusted EBITDA was $6.2 million, a 72% increase from $3.6 million in the prior-year period, with a margin of 15.4% compared to 11.0%.
• First-half operating cash flow increased approximately 98% year over year to $4.7 million from $2.4 million.
• Gross profit margin was 22.4% in the second quarter, down from 28.9% in the prior-year quarter; first-half gross profit margin was 26.0%, down from 26.9%.
• Cash and cash equivalents were $3.836 million as of September 30, 2026, down from $4.878 million as of March 31, 2026.
• Total current liabilities were $26.55 million as of September 30, 2026, down from $30.69 million as of March 31, 2026.
• Short-term borrowings were $2.735 million as of September 30, 2026, down from $4.436 million as of March 31, 2026.
• Long-term debt was $782,000 as of September 30, 2026, down from $798,000 as of March 31, 2026.
• Total shareholders' deficit was $1.449 million as of September 30, 2026, improved from $3.033 million as of March 31, 2026.

Guidance and Future Outlook:

• The company reaffirmed its fiscal year 2027 financial guidance.
• Full-year revenue guidance remains between $80 million and $84 million.
• Full-year Adjusted EBITDA guidance remains between $10 million and $12 million.

Business Segments and Product Lines:

• The company advanced its AI transformation and enterprise operations offerings during the quarter.
• Introduced AxAI, an agentic AI solution offering, in September 2026.
• Continued development of AI capabilities alongside the AeriesOne enterprise operations platform.

Management Commentary and Tone:

• CEO Ajay Khare stated that second-quarter results reflect continued progress in executing operating priorities, citing year-over-year revenue growth, improved net income, and healthy cash generation.
• Management emphasized a continued focus on serving clients, maintaining financial discipline, and positioning the business for sustainable growth.

Other Key Points:

• The first-half results include $2.7 million associated with a previously disclosed customer buyout recognized in the first quarter.
• The company hosts a conference call on November 12, 2026, at 8 AM ET to discuss results.
• The company operates delivery centers in India and Mexico.
• Forward-looking statements include risks related to global economic conditions, geopolitical instability, cybersecurity, data privacy, and foreign exchange rates.