Jerash Holdings (US), Inc. (Nasdaq: JRSH) announced financial results for its fiscal year 2027 second quarter ended September 30, 2026. The company reported a 19.8 percent increase in revenue to $50.3 million, compared to $42.0 million in the prior-year quarter. This growth was primarily driven by higher shipments to its largest U.S. customer and other clients whose orders were primarily for the U.S. market.
Gross profit for the quarter increased 45.4 percent to $9.1 million, resulting in a gross margin of 18.2 percent. This represents an increase of 320 basis points from the 15.0 percent margin recorded in the same period last year. The company attributes the margin expansion to higher shipment volumes to U.S. customers, automation-related efficiency gains, early purchases of raw materials, and tighter controls on wastage allowances.
Operating income rose nearly three-fold to $3.1 million, compared to $1.1 million in the prior-year quarter. Total operating expenses were $6.1 million, up from $5.2 million, primarily due to higher sales volume and increased headcount. Net income for the quarter increased to $2.2 million, or $0.16 per diluted share, which is approximately 4.5 times the $479,000, or $0.04 per diluted share, reported in the prior year. The effective tax rate for the quarter declined to 15.7 percent, down from 24.3 percent, due to a tax concession in Jordan that reduced the corporate income tax rate from 20 percent to 10 percent, effective October 2025.
For the first six months of fiscal 2027, revenue increased 23.2 percent to $100.5 million. Net income for the six-month period was $3.8 million, or $0.29 per diluted share, more than 4.5 times the $803,000, or $0.06 per diluted share, reported in the same period last year.
As of September 30, 2026, the company held $16.9 million in cash, cash equivalents, and restricted cash. On November 5, 2026, the board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 23, 2026, to stockholders of record as of November 16, 2026.
The company provided an outlook for the fiscal 2027 third quarter, expecting revenue of approximately $49 million to $51 million, an increase of approximately 17 to 22 percent from the same quarter last year. Gross margin for the third quarter is expected to be approximately 16 to 17 percent, taking into account increased transportation costs for raw material imports.
Jerash Holdings manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, including VF Corporation, New Balance, G-III, Urban Outfitters, American Eagle, and Acushnet Holdings Corp. The company’s existing production facilities in Jordan comprise eight factory units and six warehouses, and it employs approximately 6,600 people.
