Earnings Summary: Jerash Holdings (US), Inc. posts sharp Q3 FY26 earnings return as revenue and margins improve
Jerash Holdings (US), Inc. (NASDAQ: JRSH) reported significantly improved financial results for the third fiscal quarter of 2026 ended Dec. 31, 2025, driven by higher shipments to key export markets and early contributions from a new strategic partner in Korea, according to the company’s earnings release.
Highlights of Q3 FY26:
- Income has increased 0% year over year to $41.8 million.
- Gross margin expanded by 170 points to 16.9%.
- Operating income nearly tripled $1.9 million.
- Net income is improved $1.2 millionfrom almost breakeven a year earlier.
- Earnings per diluted share rose to $0.09.
- Cash and cash equivalents are total $13.2 million at the end of the quarter.
Q3 FY26 performance
Revenue growth was supported by higher shipments to major export markets, including the US, and initial volumes from a new customer in Korea. Net income increased 31.0% to $7.0 millionindicating improved product integration and economies of scale.
Operating expenses rose to $5.1 million due to higher sales and rental expenses, partially offset by lower stock-based compensation. Operating income totaled $1.9 millioncompared to $0.7 million quarter of last year.
Net income available to common stockholders $1.17 millioncompared to a small loss last year. Total income turned positive in $1.23 millionaided by improved performance and positive foreign exchange movements.
FY26 nine-month results
In the first nine months of fiscal 2026, revenue increased 5.8% to $123.4 million. Net profit increased 13.7% to $19.4 millionraising the gross margin to 15.7%.
Operating income nearly quadrupled to $4.0 millionwhich demonstrates operational efficiency and better cost control. Net income attributable to common stockholders increased to $2.0 millioncompared to the loss in the previous period.
Balance sheet and cash flow
As of 31 December 2025, cash and restricted funds stood at $13.2 millionwhile Total operating income was $36.4 million. Operating cash flow for the nine-month period was negative, reflecting higher receivables and improvements at suppliers linked to growth in order volumes.
The company announced a paid a dividend of $0.05 per sharepayable on Feb. 20, 2026, to stockholders of record on Feb. 13, 2026.
Expansion of power and perspective
Jerash announced the acquisition of a bank-owned manufacturing building and associated land to support the expansion. After renovations that are scheduled to be completed by the end of the calendar year, the new facility is expected to be completed increase production capacity by at least 40%. Management said demand from new and existing customers is expected to exceed current production capacity, based on the expansion decision.
In the fourth fiscal quarter of 2026, the company expects revenue growth of 23%–26% year over year again gross margins around 14%–16%to put money for 2026 of record annual income.
Business profile
Jerash manufactures and exports custom and outdoor sportswear for global brands and retailers. Its production base in Jordan includes six industrial units and four warehousesemployed by 6,000 people. The company continues to expand its customer base and product mix while investing to support higher prices.
Summary
Jerash Holdings delivered strong returns in Q3 FY26, with higher revenue, margin expansion and sharp improvement in profitability. Early contributions from a new Korean customer and strong demand from key global brands supported growth. The planned capacity expansion is expected to improve operational flexibility and support further revenue growth in the coming quarters.
