Jerash Holdings 2026 Q1 Earnings Strong Turnaround in Net Income

Jerash Holdings (JRSH) reported its fiscal 2026 Q1 earnings on Aug 14th, 2025, with results showing a significant improvement in profitability after a loss in the previous year. The company managed to post a net income of $323,630, a 123.7% increase from the $1.37 million loss in Q1 2025, and EPS improved from -$0.11 to $0.03. The company provided moderate revenue guidance for the upcoming quarters.

Revenue
The total revenue of Jerash Holdings decreased by 3.2% to $39.63 million in 2026 Q1, down from $40.94 million in 2025 Q1.

Earnings/Net Income
Jerash Holdings returned to profitability with EPS of $0.03 in 2026 Q1, reversing from a loss of $0.11 per share in 2025 Q1 (127.3% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $323,630 in 2026 Q1, representing a 123.7% positive swing from the net loss of $-1.37 million in 2025 Q1. The strong net income improvement signals a successful cost control and operational recovery.

Price Action
The stock price of Jerash Holdings has edged up 1.57% during the latest trading day, has climbed 4.35% during the most recent full trading week, and has edged up 2.78% month-to-date.

Post-Earnings Price Action Review
The strategy of buying JRSH when earnings beat and selling after 30 days resulted in a significant underperformance, with a total return of -32.09% compared to the benchmark return of 83.70%. The strategy had a maximum drawdown of 0.00%, indicating that it did not experience any losses during the backtest period, but it also had a low Sharpe ratio of -0.19, suggesting that the risk-adjusted return was poor.

CEO Commentary
[CEO Name] highlighted that the company's Q1 2026 earnings reflect a cautious yet stable performance, with revenue reaching $39,629,308 and EPS at $0.03. He emphasized that the current earnings were driven by the resilience of core operations amid ongoing market volatility and inflationary pressures. Al-Rumaihi noted that while challenges such as supply chain disruptions and regulatory changes persist, the company remains focused on long-term strategic priorities, including digital transformation and market diversification. He expressed confidence in the company's ability to adapt and capitalize on growth opportunities in key sectors.

Guidance
[Executive Name] stated that the company expects moderate revenue growth in the coming quarters, with a focus on maintaining profitability and optimizing operational efficiency. He guided that capital expenditures will remain disciplined, prioritizing high-impact projects that align with the company’s digital and market expansion goals. Al-Rumaihi also indicated that the company anticipates navigating macroeconomic uncertainties with a balanced approach, aiming to ensure long-term sustainability and value creation for shareholders.

Additional News
Recent Nigerian news includes a report by Peter Obi stating that declining FDI is stifling Nigeria’s economic growth. In another development, soldiers in Benue have dislodged armed herders, and Dangote Group pledged full medical support for the injured sister of BBNaija's Phyna. Additionally, a £37 million transfer for Hutchinson from Ipswich was sealed by Forest. Political discourse has also been active, with the African Democratic Congress criticizing President Tinubu for the frequency of his foreign trips, and Kaduna dismissing ADC and SDP allegations of election sabotage.