Jerash Holdings Reports Q1 2026 Financial Turnaround with $959,000 in Operating Income

Jerash Holdings reported a significant turnaround in Q1 2026, with operating income at $959,000, compared to a loss in the previous year. Net income was $324,000, reversing a net loss of $1.4 million from the prior year quarter. Gross profit increased 31.2% to $6.1 million, and gross margin improved to 15.4%. The company expects revenue for Q2 2026 to be between $40 million and $42 million, with a gross margin goal of 15-16%.

Jerash Holdings Inc. (JRSH) reported a significant turnaround in its Q1 2026 financial performance, marking a stark contrast to the previous year. The company's operating income surged to $959,000, reversing a loss of $829,000 from the same period last year. Net income also improved to $324,000, compared to a net loss of $1.4 million in the prior year's quarter. Gross profit increased by 31.2% to $6.1 million, with the gross margin improving to 15.4% [1].

The company's revenue for Q1 2026 was $39.6 million, a slight decline from $40.9 million in the same quarter last year. However, this figure still beat analyst expectations [2]. Jerash Holdings expects its revenue for Q2 2026 to range between $40 million and $42 million, with a gross margin goal of 15-16% [1].

Key drivers of this turnaround include increased customer demand, improved logistics and production planning, and capacity expansion. The completion of facility expansion in Amman has increased production capacity by an estimated 15%, which is expected to contribute to performance in the second fiscal quarter [1]. Additionally, the company has secured new orders, including a trial order of 150,000 pieces and another order of 3.2 million pieces from Hansoll [1].

However, the company faces challenges such as shipment delays, ongoing geopolitical instability, and the impact of US tariffs on products from Jordan. The 15% tariff on Jordanian products remains lower than tariffs from other Asian countries but still poses a challenge [1]. The company is cautious about potential tariff changes and geopolitical instability, which could impact future operations and expansion plans [1].

Jerash Holdings has also terminated its joint venture with Busana, opting to deal directly with customers involved [1]. The company is consulting with international tax experts to optimize its tax structure, aiming to decrease the effective tax rate as earnings improve [1].

In summary, Jerash Holdings reported a robust Q1 2026, with significant improvements in operating income, net income, gross profit, and gross margin. The company expects continued growth in the coming quarters, despite facing challenges such as tariffs and geopolitical instability.

References:

[1] https://finance.yahoo.com/news/jerash-holdings-us-inc-jrsh-070903959.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX506F4B:0-jerash-holdings-q1-revenue-beats-net-income-rises/