Aeries Technology (AERT) AI Stock Analysis

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Aeries Technology

(NASDAQ:AERT)

Rating:49Neutral

Price Target:

$1.00

▲(3.09%Upside)

Aeries Technology's overall stock score reflects significant financial challenges, including high leverage and negative profitability. While the company has positive signals from technical analysis and regained Nasdaq compliance, these are outweighed by financial instability and valuation concerns. The earnings call provided a mixed outlook, with strengths in specific areas but overall revenue decline.

Aeries Technology (AERT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$45.79M

Dividend YieldN/A

Average Volume (3M)244.03K

Price to Earnings (P/E)0.7

Beta (1Y)0.21

Revenue Growth-3.19%

EPS Growth-150.54%

CountryUS

Employees1,700

SectorFinancial

Sector Strength74

IndustryConsulting Services

Share Statistics

EPS (TTM)-0.13

Shares Outstanding47,152,626

10 Day Avg. Volume74,415

30 Day Avg. Volume244,035

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)-7.65

Price to Sales (P/S)0.00

P/FCF Ratio-30.37

Enterprise Value/Market Cap1.33

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit3.65

Enterprise Value/Ebitda-17.47

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Aeries Technology Business Overview & Revenue Model

Company DescriptionAeries Technology (AERT) is a technology services company specializing in providing digital transformation solutions to businesses across various sectors. The company offers a range of services including IT consulting, application management, and business process outsourcing. Aeries Technology is dedicated to helping organizations enhance their operational efficiency and drive innovation through technology-driven strategies.

How the Company Makes MoneyAeries Technology makes money primarily through its diverse portfolio of technology services. The company's revenue model is centered around offering consulting services to businesses seeking to leverage technology for operational improvements. Key revenue streams include fees from IT consulting projects, long-term contracts for application management services, and outsourcing agreements for business processes. Strategic partnerships with technology vendors and enterprise clients also play a significant role in driving the company's earnings by expanding its service offerings and customer base.

Aeries Technology Earnings Call Summary

Earnings Call Date:Jul 02, 2025

(Q4-2025)

% Change Since: -17.09%|

Next Earnings Date:Oct 21, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant successes in North America revenue growth, exceeding EBITDA guidance, and strategic partnerships in Global Capability Centers (GCCs) with a new AI-centered framework. However, these were balanced by the overall revenue decline and substantial operating and net losses, reflecting a structural transition away from noncore operations.

Q4-2025 Updates

Positive Updates

Exceeding EBITDA Guidance

Aeries Technology reported a core adjusted EBITDA of $7.4 million, beating the initial guidance range of $6 million to $7 million.

Strong North America Revenue Growth

North America revenue grew 15% year-over-year from $57 million to $65.5 million, accounting for over 93.3% of the total revenue base.

Partnerships and Expansion in GCCs

Aeries Technology initiated partnerships with global cybersecurity and SaaS companies to establish Global Capability Centers in India and Mexico, enhancing their digital transformation capabilities.

AI-Centered GCC Framework

The launch of a new AI-centered global capability center framework integrates intelligent automation and generative AI, demonstrating increased capability and competitive advantage.

Negative Updates

Overall Revenue Decline

Total revenue decreased from $72.5 million in FY 2024 to $70.2 million in FY 2025, primarily due to the exit from the Middle East business.

Operating and Net Losses

Aeries Technology reported an operating loss of $28.8 million and a net loss of $21.6 million for FY 2025.

Company Guidance

In the Aeries Technology Full Year 2025 Earnings and Business Update Call, the company provided comprehensive guidance and performance metrics for the fiscal year. Aeries achieved $7.4 million in core adjusted EBITDA, surpassing their original guidance of $6 million to $7 million, underscoring the impact of their strategic realignment. The company reported total revenue of $70.2 million, a slight decrease from $72.5 million in FY 2024, primarily due to their exit from the Middle East market, while North American revenue grew by 15% from $57 million to $65.5 million. Despite an operating loss of $28.8 million and a net loss of $21.6 million, the core adjusted EBITDA showed a 365% increase over the previous year. Aeries ended the year with $2.8 million in cash and $1.1 million in long-term debt, providing financial flexibility. For FY 2026, Aeries reaffirmed their guidance with projected revenues between $74 million and $80 million and adjusted EBITDA ranging from $6 million to $8 million, driven by their focus on North America and their Global Capability Center model.

Aeries Technology Financial Statement Overview

Summary

Aeries Technology is facing severe financial challenges with declining revenues, negative profitability, high leverage, and poor cash flow performance. The company's financial instability poses significant risks and requires strategic changes to improve its financial health.

Income Statement

Negative

Aeries Technology experienced a significant decline in financial performance, with revenue decreasing from the previous year, resulting in negative EBIT and net income for the most recent period. The gross profit margin also declined, indicating challenges in managing costs. While the consulting industry can be volatile, these results highlight potential issues in maintaining profitability.

Balance Sheet

Very Negative

The company's balance sheet shows increased leverage, with negative stockholders' equity and a high debt-to-equity ratio, signaling financial instability. Such conditions pose significant risks, as high liabilities and negative equity can constrain financial flexibility and increase vulnerability to economic fluctuations.

Cash Flow

Negative

Aeries Technology's cash flow situation is concerning, with negative free cash flow growth and a negative operating cash flow to net income ratio. The company is facing challenges in generating positive cash flow, which is critical for sustaining operations and funding future growth without relying too heavily on external financing.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	70.20M	72.51M	53.10M	41.01M
Gross Profit	16.72M	21.64M	13.66M	12.01M
EBITDA	-20.53M	21.34M	4.12M	7.59M
Net Income	-19.71M	15.66M	1.45M	4.03M
Balance Sheet
Total Assets	39.83M	49.41M	34.40M	18.86M
Cash, Cash Equivalents and Short-Term Investments	2.76M	2.08M	1.13M	351.00K
Total Debt	17.86M	16.37M	8.80M	1.99M
Total Liabilities	45.94M	50.59M	20.93M	10.17M
Stockholders Equity	-5.80M	-12.24M	12.19M	7.56M
Cash Flow
Free Cash Flow	-2.49M	-5.82M	511.00K	1.51M
Operating Cash Flow	-1.01M	-4.30M	2.11M	3.16M
Investing Cash Flow	-858.00K	-1.74M	-1.56M	-437.00K
Financing Cash Flow	2.43M	7.06M	252.00K	-3.54M

Aeries Technology Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price0.97

Price Trends

50DMA

0.90

Positive

100DMA

0.77

Positive

200DMA

0.93

Positive

Market Momentum

MACD

0.01

Positive

RSI

46.05

Neutral

STOCH

21.44

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AERT, the sentiment is Neutral. The current price of 0.97 is below the 20-day moving average (MA) of 1.07, above the 50-day MA of 0.90, and above the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 46.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AERT.

Aeries Technology Risk Analysis

Aeries Technology disclosed 92 risk factors in its most recent earnings report. Aeries Technology reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Aeries Technology Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCIG	71 Outperform	$2.70M	―	36.75%	―	―	―
Sector *	65 Neutral	€12.74B	12.55	6.83%	3.82%	15.23%	6.82%
FORR	52 Neutral	$214.08M	―	-45.64%	―	-9.61%	-18170.36%
RGP	50 Neutral	$181.88M	―	-31.18%	8.91%	-16.27%	-589.83%
AERT	49 Neutral	$45.79M	0.71	112.00%	―	-3.19%	-150.54%

* Financial Sector Average

Performance Comparison

AERT

Aeries Technology

0.97

-1.59

-62.11%

FORR

Forrester Research

10.70

-8.55

-44.42%

RGP

Resources Connection

5.50

-5.52

-50.09%

VCIG

VCI Global Limited

0.94

-335.10

-99.72%

Aeries Technology Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance

Aeries Technology Regains Nasdaq Compliance

Positive

Jul 17, 2025

On July 17, 2025, Aeries Technology announced that it had regained compliance with the Nasdaq minimum bid price requirement, allowing it to continue trading on the Nasdaq Capital Market. This compliance was achieved without the need for a hearing or appeal, and the matter is now fully closed. The company remains focused on AI-driven business transformation and GCC delivery, supporting private equity partners in optimizing portfolio companies through digital innovation and operational efficiency.

Executive/Board Changes

Aeries Technology Board Member Resignation Announced

Neutral

Jun 25, 2025

On June 18, 2025, Ramesh Venkataraman announced his intention to resign from the Board of Directors of Aeries Technology, effective June 30, 2025. He will transition to a role as chairperson of the company’s independent advisory board, and his resignation is not due to any disagreements with the company’s operations or policies.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025