Jerash Holdings (US), Inc.

Revenue in fiscal 2026 Q4 increased 46.6% year over year to $42.9 million from $29.3 million. Gross profit rose 40.4% to $7.4 million from $5.2 million, while gross margin was 17.1% versus 17.9% a year ago. Operating income climbed to $2.3 million from $434,000, and net income improved to $1.7 million, or $0.12 per diluted share, from a net loss of $144,000, or $0.01 per share. For the balance sheet, cash and restricted cash were $12.5 million, net working capital was $36.7 million, inventory was $30 million, and accounts receivable were $5.7 million. Net cash from operating activities was about $2.5 million for fiscal 2026 versus $1.4 million in fiscal 2025. Looking ahead, management expects fiscal 2027 Q1 revenue to increase 20% to 22% year over year, with gross margin of 15% to 17%.

Sam Choi emphasized that fiscal 2026 ended with strong demand, record revenue, and better profitability, supported by the core customer and newer accounts like Hansel. He framed the strategy around diversifying the customer base and product mix, improving margins through automation and scale, and expanding capacity in phases rather than one large facility. His tone was confident and upbeat, especially around the company’s ability to sustain momentum and keep growing.

Gilbert Lee highlighted the quarter’s financial leverage: revenue up 46.6% to $42.9 million, gross profit up 40.4% to $7.4 million, operating expenses down to 11.7% of revenue, and operating income more than five times higher year over year. He also noted that tariff changes have not materially affected the bottom line because customers mostly bear those costs, and he pointed to $12.5 million in cash and restricted cash, $36.7 million in net working capital, and $2.5 million of operating cash flow for fiscal 2026. On capital returns, he mentioned the board approved a regular quarterly dividend of $0.05 per share paid May 21, 2026.

Analysts focused on whether the strong Q1 growth rate could continue for the full year, and management said it could not yet project fiscal 2027 growth because sales are constrained by capacity and customer mix remains flexible. On bookings, management said facilities are booked through December 2026, but Eric Tang clarified that roughly 80% is confirmed and the rest is expected to be confirmed in the coming one or two months, with a historical 99% confirmation rate. On Hansel, Eric said the first order was 3 million pairs, followed by another roughly 3 million-piece repeat order and a 1.3 million-piece order for a different style, and that the orders are basic styles but still carry good margins due to efficiency and scale.