Jerash Holdings Reports Q1 FY2026 Net Income of $324,000, Operating Income of $959,000.

Jerash Holdings reported a Q1 FY2026 net income of $324,000, reversing a previous loss of $1.4 million. Operating income reached $959,000, improved from a prior-year loss of $829,000. The company completed a 15% production capacity expansion in June 2025 and projects Q2 revenue between $40 million and $42 million with gross margins of 15-16%. A quarterly dividend of $0.05 per share was approved.

Jerash Holdings (NASDAQ:JRSH) reported robust financial results for the first quarter of fiscal 2026, marking a significant turnaround from the previous year. The company achieved a net income of $324,000, reversing a prior-year loss of $1.4 million. Operating income reached $959,000, up from an $829,000 loss in the same period last year [1].

Key highlights include a 31.2% increase in gross profit to $6.1 million, driven by improved operational efficiency. Revenue was $39.6 million, a slight decline from $40.9 million due to shipping redirections. The company completed a 15% production capacity expansion in June 2025, positioning it to capitalize on growing demand [1].

Looking ahead, Jerash expects Q2 fiscal 2026 revenue to range between $40 million and $42 million, with projected gross margins of 15-16%. The board of directors approved a quarterly dividend of $0.05 per share, signaling confidence in sustained profitability despite potential headwinds [1].

Jerash's turnaround is attributed to several operational improvements, including normalized logistics through resumed Aqaba Port shipping routes, better production planning, and reduced repair and maintenance expenses. The company's strategic positioning as an alternative to Chinese and Southeast Asian manufacturing appears to be gaining traction, evidenced by the completion of the first phase of a major order from a large U.S. retailer through its Hansoll Textile collaboration [1].

The company's cash position of $7.5 million and $34.6 million in working capital provide adequate operational flexibility, while the maintenance of the $0.05 quarterly dividend signals management confidence in the company's financial health. Investors should watch the company's ability to maintain profitability while expanding capacity in coming quarters.

References:
[1] https://www.stocktitan.net/news/JRSH/jerash-holdings-reports-financial-results-for-fiscal-2026-first-2as4p24uws1y.html