Jerash Holdings FY26 revenue hits record $166.3 million
Jerash Holdings reported record FY26 revenue of $166.3 million and returned to profitability with a net income of $3.6 million. Q4 revenue surged 46.6% to $42.9 million, beating estimates, while the company issued strong Q1 FY27 guidance and announced a quarterly dividend.
*this image is generated using AI for illustrative purposes only.
Jerash Holdings (US) achieved record revenue of $166.3 million for fiscal 2026, a 14% increase from $145.8 million in the prior year, driven by robust demand from major U.S. retailers and operational efficiencies. The company turned profitable with a net income of $3.6 million, or 27 cents per diluted share, reversing a net loss of approximately $840,000, or 7 cents per share, in fiscal 2025. This turnaround was supported by a gross margin improvement to 16.1% from 15.3% and operating income that more than quadrupled to $6.3 million from $1.4 million.
Fourth-Quarter Performance
The company closed the fiscal year with strong momentum, reporting fourth-quarter revenue of $42.9 million, a 46.6% increase from $29.3 million in the same period last year. This performance exceeded the analyst consensus estimate of $36.2 million. Jerash reported net income of $1.7 million, or 12 cents per share, significantly beating expectations for a loss of 1 cent per share. Gross profit for the quarter rose 40.4% to $7.4 million, while operating income surged to $2.3 million from $434,000.
Key Financial Metrics for Q4 FY26
| Metric | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue | $42.9 million | $29.3 million |
| Gross Profit | $7.4 million | $5.2 million |
| Gross Margin | 17.1% | 17.9% |
| Operating Income | $2.3 million | $434,000 |
| Net Income | $1.7 million | Net loss of $144,000 |
| Diluted EPS | $0.12 | $(0.01) |
Strategic Expansion and Outlook
Jerash Holdings is executing a phased expansion strategy to support its growth trajectory. Production facilities are fully booked through December 2026. The first phase of expansion, expected to be completed by the end of calendar year 2026, will increase production capacity by approximately 15% and add 700 workers. A second phase, scheduled for completion by mid-2027, aims to add an additional 20-25% in capacity through the conversion of a centralized cutting department into a production factory equipped with 500 new sewing machines and automation, supported by approximately 1,100 additional workers.
Looking ahead to the first quarter of fiscal 2027, the company expects revenue between $47.52 million and $48.31 million, exceeding the analyst consensus estimate of $42.3 million. The gross margin target for the quarter is set at 15-17%. The Board of Directors approved a regular quarterly dividend of $0.05 per share, payable on May 21, 2026, to stockholders of record as of May 14, 2026.
How will the company manage potential labor shortages as it seeks to hire 1,800 new workers for the expansion phases?
What risks does the fully booked production schedule through December 2026 pose regarding supply chain disruptions or order cancellations?
Can the company sustain current gross margin levels once the significant capital investments for the second expansion phase begin in 2027?
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