Aeries Technology reported QQ1 2026 revenue of $15.33 million, with gross profit of $3.778 million and a gross margin of 24.64%, reflecting a stable core services mix. Operating income came in at $0.82 million, yielding an operating margin of 5.35%, while net income reached $1.512 million and earnings per share $0.032. The quarter benefited from $1.187 million of other income, contributing to a resilient bottom line despite a yoy revenue decline. EBITDA stood at $2.382 million, delivering an EBITDA margin of approximately 15.5%. Free cash flow was positive at $1.11 million and operating cash flow was $1.369 million, underscoring meaningful cash generation from ongoing activities.
On the balance sheet, total assets were $38.825 million against total liabilities of $43.253 million, producing negative stockholders’ equity of $4.292 million. Liquidity remained a concern with current assets $20.089 million and current liabilities $30.710 million, yielding a current ratio of roughly 0.65. The company ended the period with cash and equivalents of $2.137 million and net debt of $13.755 million. These balance sheet characteristics imply leverage risk and potential flexibility constraints, even as cash flow supports debt service in the near term.
From a growth and outlook perspective, the revenue decline of 8.02% YoY (and -19.53% QoQ) contrasts with substantial improvements in profitability metrics, notably a doubling of net income YoY and solid margin discipline. The limited availability of peer benchmarks for AERT in publicly disclosed data makes external benchmarking challenging; however, the combination of positive operating leverage and cash generation suggests potential for a positive earnings trajectory if revenue trends stabilize and the balance sheet is managed, particularly through working capital optimization and potential deleveraging.