Jerash Holdings Reports Fiscal 2026 Second Quarter Financial Results

Rhea-AI Summary

Jerash Holdings (NASDAQ:JRSH) reported fiscal 2026 second quarter results for the period ended September 30, 2025. Revenue rose 4.3% to $42.0M and gross profit was $6.3M with a gross margin of 15.0%. Operating income was $1.09M and net income was $479,000 ($0.04 diluted). For the first six months, revenue was $81.6M and net income was $803,000 ($0.06 diluted) versus a prior-year loss. The company completed a facility expansion adding ~15% production capacity and approved a $0.05 quarterly dividend payable Nov 26, 2025. Q3 revenue is guided to +19–21% year-over-year with gross margin targeted ~13–15%.

Positive

• Revenue +4.3% to $42.0M in Q2 FY2026
• Q3 revenue guidance +19–21% year-over-year
• Completed facility expansion adding ~15% capacity
• Declared regular quarterly dividend of $0.05 per share
• First-half net income $803,000 vs prior-year loss

Negative

• Gross margin down to 15.0% from 17.5% year-over-year
• Q2 net income declined to $479,000 from $665,000
• Total other expenses increased (financing needs)
• Income tax expense rose to $154,000 in Q2

Insights

Equity Analyst

Q2 shows modest top-line growth, margin pressure, stable operating income, and a small dividend; near-term outlook guided higher revenue.

Revenue rose to $42.0 million, up 4.3% year‑over‑year, while gross margin fell to 15.0% from 17.5%, driven by a changed product mix and catch‑up timing benefits in the prior year; operating income remained near prior levels at $1.09 million, and net income declined to $479,000 for the quarter. The company cites capacity expansion (approximately 15% added in late June) and diversification of customers toward U.S. shipments as the operational drivers behind recent revenue gains and first‑half margin improvement to 15.2%.

Risks and dependencies include ongoing geopolitical and tariff uncertainties and higher other expenses tied to financing needs, while near‑term guidance calls for third quarter revenue growth of 19 to 21 and a gross margin target of approximately 13 to 15. Concrete items to watch over the next quarter include the realization of the guided revenue growth, whether the planned expansion or potential acquisitions proceed, and the dividend payment of $0.05 per share payable on November 26, 2025.

FAIRFIELD, NEW JERSEY / ACCESS Newswire / November 12, 2025 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2026 second quarter ended September 30, 2025.

Fiscal 2026 Second Quarter Highlights

• Revenue increased 4.3 percent to $42.0 million, from $40.2 million in the prior year quarter.

• Gross margin was 15.0 percent, compared with 17.5 percent in the prior year quarter.

• Operating income was $1.09 million, compared with $1.13 million in the prior year quarter.

• Net income was $479,000, compared with $665,000 in the prior year quarter.

Outlook

• Revenue for the fiscal 2026 third quarter is expected to increase by 19 to 21 percent over the same quarter last year.

• Gross margin goal for the fiscal 2026 third quarter is approximately 13 to 15 percent.

"Amid ongoing trade uncertainties, we continue to experience growing demand from our customers, as Jordan is increasingly becoming a preferred destination for global brands seeking to diversify their manufacturing partnerships beyond Asia," said Sam Choi, Jerash's chairman and chief executive officer.

"In late June, we completed an expansion of our existing manufacturing facilities, adding approximately 15 percent to our much-needed production capacity. With increasing capacity requests from our global customers and strategic partners, we have initiated a long-term expansion plan to support anticipated growth. This includes exploring potential acquisitions and facility development on our own land to ensure that Jerash remains well-positioned to sustain our competitive edge and meet evolving market demands.

"Gross margin for the quarter was lower than that for the same period last year, which benefited from catch-up production of higher-margin outerwear originally scheduled for the first quarter of fiscal 2025. Additionally, as we successfully continue to diversify our customer base and product mix, we expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale, our goal is to improve gross profit margins through increased production automation and the benefits of economies of scale.

"During this important period of progress for the Company, we remain attentive to potential impacts of geopolitical uncertainties in the region and evolving tariff developments as we continue advancing our growth strategy," Choi added.

Fiscal 2026 Second Quarter Results

Revenue for the fiscal 2026 second quarter grew 4.3 percent to $42.0 million, from $40.2 million in the same quarter last year. The increase was primarily driven an increase in shipments to the U.S., resulting from a more diverse customer base in fiscal 2026.

Gross profit was $6.3 million for the fiscal 2026 second quarter, compared with $7.1 million in the same quarter last year. Gross profit margin for the quarter declined to 15.0 percent, from 17.5 percent in the same period last year, which benefited from catch-up production of some outerwear that carried higher margins originally scheduled for the first quarter of fiscal 2025. The decrease was primarily driven by the diversification of customer base and product mix, which resulted in a lower average gross margin.

Operating expenses totaled $5.2 million in the fiscal 2026 second quarter, compared with $5.9 million in the same quarter last year. The decrease was primarily due to better control of export costs and lower stock-based compensation expenses.

Operating income was $1.09 million in the fiscal 2026 second quarter, slightly lower than $1.13 million in the same quarter last year.

Total other expenses were $456,000 in the fiscal 2026 second quarter, compared with $364,000 in the same quarter last year. The increase was primarily due to the increase in financing needs to support business growth.

Income tax expenses were $154,000 in the fiscal 2026 second quarter, compared with $106,000 in the prior year quarter.

Net income was $479,000, or $0.04 per diluted share, in the fiscal 2026 second quarter, compared with $665,000, or $0.05 per diluted share, in the same quarter last year.

Comprehensive income attributable to the Company's common stockholders totaled $444,000 in the fiscal 2026 second quarter, compared with $663,000 in the same quarter last year.

Six-Month Fiscal Year 2026 Results

Revenue for the first six months of fiscal year 2026 rose to $81.6 million, from $81.2 million in the same period last year. The increase was mainly due to the increase in overall demands for most of Jerash's major customers following the Company's efforts to diversify customer base.

Gross profit increased 5.8 percent to $12.4 million for the first half of fiscal year 2026, compared with $11.7 million for the same period last year. Gross margin for the first six months of fiscal year 2026 increased to 15.2 percent, compared with 14.4 percent in the same period last year.

Operating expenses for the first six months of fiscal year 2026 were $10.3 million, compared with $11.4 million for the same period last year. Operating income increased to $2.0 million for the first six months of fiscal year 2026, compared with $306,000 for the same period last year. The improvement was mainly attributable to reduced export logistics costs, lower stock-based compensation expenses, and reduced spending on repairs and maintenance.

Total other expenses for the first six months of fiscal 2026 decreased to $763,000, compared with $790,000 for the same period last year, primarily due to lower interest expense.

Income tax expenses were $483,000 for the first six months of fiscal year 2026, compared with $218,000 for the same period in prior year.

Net income for the first six months of fiscal year 2026 was $803,000, or $0.06 per diluted share, compared with a net loss of $702,000, or $0.06 per share, in the same period last year. The increase was primarily driven by greater overall demand, improved control over import and export costs, and business growth that enabled lower average costs through economies of scale.

Comprehensive income attributable to Jerash's common stockholders was $773,000 in the first six months of fiscal year 2026, compared with comprehensive loss of $673,000 for the same period last year.

Balance Sheet, Cash Flow, and Dividends

Cash and restricted cash totaled $13.7 million, and net working capital was $35.2 million as of September 30, 2025.

On November 7, 2025, Jerash's board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 26, 2025 to stockholders of record as of November 19, 2025.

Conference Call

Jerash Holdings will host an investor conference call to discuss its fiscal 2026 second quarter results today, November 12, 2025, at 9:00 a.m. Eastern Time.

Phone: 888-506-0062 (domestic); 973-528-0011 (international)

Conference ID: 589743

A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.

About Jerash Holdings (US), Inc.

Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.

Forward-Looking Statements

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.

Contact:

PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980; jlin@pondel.com

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(tables below)

 

JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

		For the Three Months Ended September 30,								For the Six Months Ended September 30,
		2025				2024				2025				2024
Revenue, net		$	41,968,534			$	40,240,127			$	81,597,842			$	81,175,843
Cost of goods sold			35,678,854				33,182,244				69,219,282				69,478,089
Gross Profit			6,289,680				7,057,883				12,378,560				11,697,754
Selling, general, and administrative expenses			4,971,466				5,449,386				9,878,681				10,449,130
Stock-based compensation expenses			228,826				474,088				451,495				943,023
Total Operating Expenses			5,200,292				5,923,474				10,330,176				11,392,153
Income from Operations			1,089,388				1,134,409				2,048,384				305,601
Other Income (Expenses):
Interest expenses			(493,482	)			(503,149	)			(849,330	)			(983,352	)
Other income, net			37,153				139,166				86,467				193,201
Total other expenses, net			(456,329	)			(363,983	)			(762,863	)			(790,151	)
Net income (loss) before provision for income taxes			633,059				770,426				1,285,521				(484,550	)
Income tax expenses			153,756				105,877				482,588				217,598
Net income (loss)			479,303				664,549				802,933				(702,148	)
Net (gain) loss attributable to noncontrolling interest			(17,698	)			(9,261	)			(22,652	)			12,220
Net income (loss) attributable to Jerash Holdings (US), Inc.'s Common Stockholders		$	461,605			$	655,288			$	780,281			$	(689,928	)
Net income (loss)		$	479,303			$	664,549			$	802,933			$	(702,148	)
Other Comprehensive Income (Loss):
Foreign currency translation (loss) gain			(17,215	)			7,583				(7,651	)			16,496
Total Comprehensive Income (Loss)			462,088				672,132				795,282				(685,652	)
Comprehensive (income) loss attributable to noncontrolling interest			(17,698	)			(9,261	)			(22,652	)			12,220
Comprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.'s Common Stockholders		$	444,390			$	662,871			$	772,630			$	(673,432	)
Earnings (Loss) Per Share Attributable to Common Stockholders:
Basic and diluted		$	0.04			$	0.05			$	0.06			$	(0.06	)
Weighted Average Number of Shares
Basic			12,699,940				12,294,840				12,699,940				12,294,840
Diluted			13,174,524				12,460,241				13,125,459				12,294,840
Dividend per share		$	0.05			$	0.05			$	0.10			$	0.10

 

JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		September 30, 2025				March 31, 2025
		(Unaudited)
ASSETS
Current Assets:
Cash		$	12,002,314			$	13,346,791
Accounts receivable, net			5,798,578				3,076,074
Inventories			26,256,890				27,704,829
Prepaid expenses and other current assets			3,500,397				3,648,321
Advance to suppliers, net			7,995,085				6,644,194
Total Current Assets			55,553,264				54,420,209
Restricted cash - non-current			1,700,539				1,717,248
Long-term deposits			379,283				464,934
Property, plant, and equipment, net			24,667,532				25,023,681
Goodwill			499,282				499,282
Operating lease right of use assets			535,512				850,172
Total Assets		$	83,335,412			$	82,975,526
LIABILITIES AND EQUITY
Current Liabilities:
Credit facilities		$	5,176,438			$	4,512,462
Accounts payable			7,755,534				6,507,308
Accrued expenses			4,075,252				4,342,436
Income tax payable - current			865,161				1,305,386
Uncertain tax provision			-				175,290
Other payables			1,502,010				2,149,185
Deferred revenue			691,264				487,004
Operating lease liabilities - current			314,685				339,699
Total Current Liabilities			20,380,344				19,818,770
Deferred tax liabilities, net			120				120
Operating lease liabilities - non-current			109,056				287,527
Total Liabilities			20,489,520				20,106,417
Equity
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding		$	-			$	-
Common stock, $0.001 par value; 30,000,000 shares authorized; 12,939,418 shares issued, and 12,699,940 shares outstanding as of September 30, 2025 and March 31, 2025, respectively			12,939				12,939
Additional paid-in capital			26,126,330				25,674,835
Treasury stock, 239,478 shares			(1,169,046	)			(1,169,046	)
Statutory reserve			413,821				413,821
Retained earnings			37,907,188				38,396,901
Accumulated other comprehensive loss			(520,773	)			(513,122	)
Total Jerash Holdings (US), Inc. Stockholders' Equity			62,770,459				62,816,328
Noncontrolling interest			75,433				52,781
Total Equity			62,845,892				62,869,109
Total Liabilities and Equity		$	83,335,412			$	82,975,526

 

JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

		For the Six Months Ended September 30,
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		$	802,933			$	(702,148	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation			1,506,793				1,209,053
Stock-based compensation expenses			451,495				943,023
Credit loss			-				16,768
Amortization of operating lease right-of-use assets			316,722				300,559
Changes in operating assets:
Accounts receivable			(2,722,504	)			(392,484	)
Inventories			1,447,940				7,034,774
Prepaid expenses and other current assets			147,924				(470,777	)
Advance to suppliers			(1,350,891	)			(2,942,296	)
Changes in operating liabilities:
Accounts payable			1,248,225				(1,945,505	)
Accrued expenses			(267,184	)			(520,948	)
Other payables			(647,175	)			133,937
Deferred revenue			204,260				1,112,963
Operating lease liabilities			(205,547	)			(238,237	)
Income tax payable			(614,713	)			(1,112,062	)
Net cash provided by operating activities			318,278				2,426,620
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant, and equipment			(844,401	)			(348,238	)
Payments for construction of properties			-				(270,599	)
Payment for long-term deposits			(209,543	)			(317,386	)
Net cash used in investing activities			(1,053,944	)			(936,223	)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend payment			(1,269,994	)			(1,229,484	)
Repayment from short-term loan			(10,003,284	)			(5,566,040	)
Proceeds from short-term loan			10,667,260				9,136,277
Net cash (used in) provided by financing activities			(606,018	)			2,340,753
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH			(19,502	)			16,018
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH			(1,361,186	)			3,847,168
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD			15,064,039				14,036,867
CASH, AND RESTRICTED CASH, END OF THE PERIOD		$	13,702,853			$	17,884,035
CASH, AND RESTRICTED CASH, END OF THE PERIOD		$	13,702,853			$	17,884,035
LESS: NON-CURRENT RESTRICTED CASH			1,700,539				1,545,457
CASH, END OF THE PERIOD		$	12,002,314			$	16,338,578
Supplemental disclosure information:
Cash paid for interest		$	849,330			$	983,352
Income tax paid		$	1,105,128			$	1,329,150
Non-cash investing and financing activities
Equipment obtained by utilizing long-term deposit		$	295,195			$	262,017
Operating lease right of use assets obtained in exchange for operating lease obligations		$	-			$	67,512

SOURCE: Jerash Holdings (US), Inc.

View the original press release on ACCESS Newswire

FAQ

What were Jerash Holdings (JRSH) Q2 FY2026 revenue and margin figures?

Jerash reported $42.0M revenue for Q2 FY2026 with a 15.0% gross margin.

What is Jerash Holdings' (JRSH) Q3 FY2026 revenue outlook announced Nov 12, 2025?

The company expects Q3 FY2026 revenue to increase 19–21% year-over-year.

Did Jerash Holdings (JRSH) announce a dividend in November 2025?

Yes; the board approved a $0.05 per share quarterly dividend payable Nov 26, 2025.

How did Jerash's operating income and net income compare year-over-year in Q2 FY2026?

Operating income was $1.09M (slightly below prior-year $1.13M); net income was $479,000 vs $665,000 prior year.

What capacity changes did Jerash Holdings report in June 2025?

Jerash completed an expansion in late June adding approximately 15% production capacity.