Aeries Technology, Inc. (AERT Quick QuoteAERT - Free Report) shares have gained 45.5% year to date compared with the industry’s 3.6% growth. The company has outperformed other industry players, including GDS Holdings Limited (GDS Quick QuoteGDS - Free Report) and Priority Technology Holdings, Inc. (PRTH Quick QuotePRTH - Free Report) . Shares of GDS Holdings and Priority Technology have rallied 1.6% and 17.3%, respectively, in the same time frame. AERT benefits from rising AI adoption, growing GCC demand, multi-year client engagements, strong offshore delivery capabilities and expanding cross-selling opportunities across PE-backed clients.

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A Key Look Into AERT’s Business Operations

Aeries Technology is a global consulting and technology services company that helps private equity-backed and middle-market businesses build, manage, and optimize Global Capability Centers (GCCs) to drive growth, efficiency and digital transformation. Leveraging over a decade of experience, the company provides end-to-end GCC lifecycle support, including strategic advisory, operational management, talent acquisition, regulatory compliance and AI-enabled transformation. Its GCC model offers clients access to high-quality global talent, significant cost savings, scalability, operational control, and flexible ownership structures, including Build-Operate-Transfer and client-owned models. The company also delivers specialized services across technology, finance and accounting, cybersecurity, IT infrastructure, customer service, and business applications, supported by process optimization and operational excellence initiatives.

Aeries Technology’s Key Tailwinds

Aeries Technology is benefiting from the growing adoption of AI and automation across enterprises. The company is expanding its capabilities through AI advisory services, AI delivery pods and proprietary platforms such as A1 GCC, which helps clients manage and optimize GCC operations. Increasing demand for AI-enabled productivity, workflow automation, and business transformation creates opportunities for higher-value engagements, deeper customer relationships, and long-term revenue growth.

The increasing use of GCCs by enterprises and private-equity-backed firms is a major tailwind for Aeries Technology. The company specializes in helping clients establish and scale GCCs that improve efficiency, reduce costs, and provide access to skilled talent. With more than 40 GCCs supported and a comprehensive suite of consulting, transformation, and operational services, Aeries Technology is well-positioned to capitalize on the growing demand for dedicated global delivery centers.

The company continues to secure multi-year engagements that strengthen revenue visibility and support future growth. Management highlighted that several recently signed client programs are still in the ramp-up phase and are expected to contribute more meaningfully in fiscal 2027. The company’s focus on private-equity-backed clients also creates opportunities for cross-selling additional services across portfolio companies, supporting recurring revenues and long-term client retention.

The company’s delivery footprint in India and Mexico provides access to large, skilled talent pools at competitive costs. This enables Aeries Technology to offer both offshore and nearshore solutions while helping clients address talent shortages and improve operational flexibility. 

Aeries Technology is demonstrating stronger profitability and cash generation as operational efficiencies and automation initiatives gain traction. The company reported positive net income, positive operating cash flow, and a significant improvement in adjusted EBITDA during the third quarter of fiscal 2026. Recent customer wins and the launch of new technology solutions further strengthen growth prospects, while the $5 million share repurchase authorization reflects management’s confidence in the company’s long-term outlook.

Challenges Persist for AERT’s Business

Aeries Technology continues to face liquidity-related challenges, including a working capital deficit, outstanding obligations under forward purchase agreements, and dependence on future capital-raising or refinancing initiatives to strengthen its financial position. Customer concentration remains a risk, with a limited number of clients contributing a significant share of revenue, making results vulnerable to contract losses, budget cuts, or project delays. Credit risk also persists, as reflected in the sizeable allowance for doubtful accounts. Margin expansion could be pressured by competitive pricing, talent retention needs, and ongoing investments in automation and new capabilities.

Aeries Technology’s Valuation

The company is cheaply priced compared with the industry average. Currently, AERT is trading at 0.52X trailing 12-month EV/sales value, below the industry’s average of 3.53X. The metric also remains lower than that of the company’s peers, GDS Holdings (4.88X) and Priority Technology (1.5X).

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Conclusion

Despite liquidity constraints, customer concentration and potential margin pressures, Aeries Technology remains well-positioned to capitalize on growing demand for AI-enabled services and GCC solutions, supported by expanding client engagements, improving profitability, and a strengthening portfolio of technology-driven offerings.

Strong fundamentals, coupled with AERT’s undervaluation, present a lucrative opportunity for investors to add the stock to their portfolio.