Good morning, and welcome to the Aeries Technology's earnings conference call for the quarter ended September 30, 2026, second quarter fiscal year 2027. Joining us today is Aeries Chief Executive Officer, Ajay Khare. The call will review the company's results for the quarter ended September 30, 2026, and discuss the strategic priorities shaping the next stage of its growth. Before we begin, please note that today's discussion contains forward-looking statements, including Aeries' expectations regarding future performance and market opportunities. Actual results may differ materially. Please refer to the company's filings with the U.S. Securities and Exchange Commission and the company's earnings release for a full discussion of the risks and uncertainties associated with these statements. Additionally, today's call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures are available in the company's earnings release and on the company's website.
With that, I will now turn the call over to Ajay Khare. You may begin.
Thank you. Good morning, and thank you for joining our second quarter fiscal 2027 earnings call. For the quarter ended September 30, 2026, we continued to make progress against our operating priorities. Revenue grew 4.5% year-over-year to $18.1 million, while net income increased to $1.3 million from $0.6 million in the prior year quarter. For the first half of the fiscal 2027, revenue increased 23% to $40.1 million, including the previously disclosed $2.7 million customer buyout recognized in the first quarter. Operating cash flow for the first half nearly doubled year-over-year to $4.7 million. Our focus remains on strengthening client relationships, maintaining operations and financial discipline, and building capabilities that support sustainable growth. Moving on to business updates. During the quarter, we continued working with existing clients across AI transformation and enterprise operations while pursuing new business opportunities.
In September, we introduced AxAI, our agentic AI solution offering. Alongside AeriesOne, our AI-native enterprise operations platform, AxAI expands our capabilities to help clients design, deploy, and manage AI solutions. We will continue to develop these offerings in line with client requirements and our broader business priorities. Financial highlights. Turning briefly to our second quarter financial performance. Revenue increased 4.5% year-over-year to $18.1 million, compared with $17.3 million in the prior year quarter. Gross profit was $4.1 million, compared with $5 million, with a gross margin of 22.4%, compared with 28.9% in the prior year quarter. SG&A expenses were approximately $3.2 million, representing 17.4% of revenue, compared with 17.5% in the prior year quarter. Income from operations was $0.9 million, compared with $2 million in the prior year quarter.
Net income increased to $1.3 million from $0.6 million, while adjusted EBITDA was $2.1 million, compared with $2.6 million, representing an adjusted EBITDA margin of 11.6%. For the first half of fiscal year 2027, net income increased to $3.6 million from $2.3 million, and adjusted EBITDA was $6.2 million, compared with $3.6 million, including the $2.7 million customer buyout. For the first half of fiscal year 2027, operating cash flow was $4.7 million, an increase of approximately 98% compared with $2.39 million in the prior year period. As of September 30, 2026, cash and cash equivalents were $3.8 million. We continue to manage our capital allocation priorities, focusing on supporting operations and meeting our financial obligations. Financial outlook. We are reaffirming our fiscal year 2027 guidance of $80 million-$84 million in revenue and $10 million-$12 million in adjusted EBITDA.
For the remainder of the fiscal year, our priorities remain client delivery, disciplined execution, operational performance, and efficient, effective management of our financial resources. Thank you for joining us today and for your continued interest in Aeries Technology.
This concludes today's conference call. You may disconnect.