Jerash Holdings Reports 35.6% Revenue Surge and Secures Major Order Amid Geopolitical Challenges

Jerash Holdings reported a 35.6% increase in revenue to $29.3 million in Q4 2025, with gross profit surging 250% to $5.2 million. The company secured a major initial order through a strategic collaboration with Hansho and completed a manufacturing facility expansion. However, logistical disruptions at Israel's Haifa port and increased operating expenses impacted revenue and net loss.

Jerash Holdings (US) Inc. (JRSH) reported a robust 35.6% increase in revenue for the fiscal 2025 fourth quarter, reaching $29.3 million, according to its earnings call [1]. Gross profit surged by nearly 250% to $5.2 million, with the company's gross margin improving to 17.9% from 7.0% in the previous year. The company secured a major initial order from a large U.S.-based multinational retail corporation through a strategic collaboration with Hansho, a leading South Korean apparel group [1].

The company is well-positioned to benefit from global brands seeking manufacturing alternatives outside of China and Southeast Asia due to geopolitical uncertainties [1]. Jerash Holdings completed an expansion at its manufacturing facility in Amman, increasing production capacity by approximately 15% [1].

However, logistical disruptions at Israel's Haifa port, driven by geopolitical instability, impacted revenue by approximately $3 to $4 million [1]. Operating expenses increased by $284,000 to $4.8 million, partly due to higher SGNA expenses and stock-based compensation. The company reported a net loss of $144,000 for the fiscal 2025 fourth quarter, although this was an improvement from the previous year's loss [1].

The dissolution of the joint venture with Brianna indicates challenges in achieving progress and growth through this partnership [1]. Persistent regional geopolitical tensions continue to cause delays in export shipments, affecting the company's logistics [1].

Despite these challenges, Jerash Holdings delivered record annual revenue of $145.8 million in fiscal 2025, representing impressive 24.4% year-over-year growth [2]. The company's fourth quarter performance was particularly strong with revenue increasing 35.6% to $29.3 million, despite $3-4 million in shipments being deferred due to Haifa port disruptions [2]. Gross margin improvements stand out as a key positive, expanding to 17.9% in Q4 from just 7.0% a year ago [2].

For the full year, gross margin improved to 15.3% from 14.4% [2]. Despite these operational improvements, Jerash still reported a net loss of $144,000 in Q4 and $840,000 for the full fiscal year. While these losses represent substantial improvements from the prior year's losses ($3.1 million in Q4 FY2024 and $2.0 million for full FY2024), they indicate the company hasn't yet achieved consistent profitability despite record revenues [2].

The outlook appears positive with Q1 FY2026 revenue projected at $38-40 million and gross margins of 15-16% [2]. The company has completed manufacturing facility expansions expected to increase production capacity by 15% starting in Q2 FY2026 [2]. With factories fully booked through December 2025 and a new relationship with a major U.S. retail corporation, Jerash has created a solid foundation for continued growth.

However, investors should note ongoing logistics challenges related to regional geopolitical issues, specifically the bombing of Haifa port necessitating alternative shipping routes through Jordan's Aqaba port [2]. These disruptions could continue to impact timely revenue recognition in the near term.

References:
[1] https://finance.yahoo.com/news/jerash-holdings-us-inc-jrsh-010027583.html
[2] https://www.stocktitan.net/news/JRSH/jerash-holdings-reports-financial-results-for-fiscal-2025-fourth-nxt9qll5nq52.html