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Jerash (US) (JRSH) investor relations material
Jerash (US) Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for Q2 FY2026 increased 4.3% year-over-year to $42.0 million, driven by higher U.S. shipments and a more diverse customer base.
Net income for Q2 FY2026 was $479,000 ($0.04 per diluted share), down from $665,000 ($0.05 per share) in the prior year, mainly due to lower gross margins and changes in product mix.
Six-month net income reached $803,000, reversing a net loss of $702,000 in the same period last year, due to improved demand and cost controls.
Expansion of manufacturing facilities completed in June, increasing capacity by 15% to meet rising global demand and support diversification of customer base and product mix.
Ongoing long-term expansion plan includes evaluating acquisitions and developing company-owned land to sustain competitive edge.
Financial highlights
Gross profit margin for Q2 FY2026 was 15.0%, down from 17.5% year-over-year, mainly due to product mix and customer diversification.
Operating expenses decreased to $5.2 million from $5.9 million, reflecting better export cost control and lower stock-based compensation.
Operating income for Q2 FY2026 was $1.09 million, slightly below $1.13 million in the prior year quarter.
Cash and restricted cash totaled $13.7 million as of September 30, 2025; net working capital was $35.2 million.
Net cash provided by operating activities was $318,000 for the six months ended September 30, 2025, down from $2.4 million year-over-year, mainly due to higher accounts receivable and advance supplier payments.
Outlook and guidance
Q3 FY2026 revenue is projected to grow 19–21% year-over-year; gross margin for Q3 targeted at 13–15%.
Long-term goal to improve gross margin to approximately 20% through automation and economies of scale, expected to take several years.
Q4 expected to be stronger than previous years, with capacity fully booked through February and reduced seasonality.
Management expects cash on hand and operating cash flow to be sufficient for working capital needs over the next 12 months.
Capital expenditures are projected to increase, with up to $7.8 million planned for fiscal 2026 to support production capacity expansion.
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