Aeries Technology delivered a resilient QQ2 2026 performance with revenue of $17.36 million and a gross margin of 28.9%, translating into an operating income of $1.99 million and net income of $2.23 million. The quarter showcased meaningful sequential improvement, with revenue rising 13.2% QoQ and gross profit up meaningfully, while the company benefited from a tax credit that contributed to net income strength. Year-over-year metrics also show notable improvement: gross profit up about 40.5% and operating income up ~148%, driven by favorable pricing/mix and ongoing utilization discipline. Free cash flow was positive at roughly $1.28 million, underpinning cash generation even as working capital and balance-sheet dynamics warrant close monitoring.
However, the balance sheet signals material risk: negative shareholders’ equity of about -$2.9 million, sizable current liabilities (~$28.97 million) versus current assets (~$20.52 million), and a net debt position of ~$13.9 million. Cash on hand stood at ~$1.87 million at quarter-end, with trailing twelve months’ EBITDA of ~$2.0 million and a net debt load roughly 7x ahead of EBITDA, implying limited financial flexibility in a tightening macro environment. Management did not publish explicit forward guidance in the filing; investors should watch for commentary on pipeline quality, utilization, and any potential capital allocation steps in subsequent updates.