Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors

You're looking at Jerash Holdings (US), Inc. (JRSH) and trying to figure out if the apparel manufacturer's recent volatility is a buy signal or a red flag. Honestly, the first half of fiscal year 2025 was a mixed bag, showing the real tension between top-line growth and margin pressure. Revenue for the first six months of FY2025 actually climbed to $81.2 million, a clear sign that demand from major U.S. customers is strong, but the bottom line tells a different story: the company booked a net loss of $702,000 for that same period, or $0.06 per share, largely due to higher operating expenses and Red Sea-related shipping disruptions. Management still guided for a full-year revenue increase of 30-35%, so the question isn't about top-line growth, but whether they can defintely hit their 14-15% gross margin goal while navigating persistent global logistics headaches.

Revenue Analysis

You need to know where the money is coming from, especially when a company like Jerash Holdings (US), Inc. (JRSH) operates in a volatile, global supply chain. The direct takeaway is this: JRSH delivered a record fiscal year 2025, but the revenue stream's stability is now tied to how well they manage geopolitical risks and logistics bottlenecks.

For the full fiscal year ending March 31, 2025, Jerash Holdings (US), Inc. reported annual revenue of $145.81 million. That's a strong, clean increase of 24.4% year-over-year from fiscal 2024. This growth is defintely a testament to their core business model, which is manufacturing and exporting custom, ready-made, sportswear and outerwear.

Here's the quick math on where that revenue comes from:

• Primary Source: Manufacturing and export of apparel, specifically sportswear and outerwear.
• Key Customers: Leading global brands and retailers, including VF Corporation (who owns The North Face and Vans), New Balance, and American Eagle.
• Geographic Focus: Revenue is driven by shipments to major customers in the U.S. and Europe.

While the company does not report a formal segment breakdown in its public filings, the entire operation is essentially one segment: high-volume apparel manufacturing for global brands. The crucial insight is that the revenue is highly concentrated in the export market, specifically to the U.S. and Europe, which typically carry higher margins.

The near-term risks and opportunities are mapped to clear actions. The biggest change impacting revenue recognition in late fiscal 2025 was the logistical disruption from geopolitical issues, notably the Haifa port congestion and bombing. This forced the deferral of approximately $3 million to $4 million in shipments from the fourth quarter of fiscal 2025 into the first quarter of fiscal 2026.

To be fair, the company is adapting quickly. They are now using the alternative Aqaba port, which helps them keep shipping, but it also extends customer lead times by around 10 to 12 days. This delay can impact the timing of revenue recognition, so you need to watch quarterly results closely for any lumpiness. Still, they are actively pursuing diversification, which is a big plus.

They are attracting new global brands and secured a major initial order for 3.2 million pieces of girls' shorts (valued at roughly $6.5 million) through a new relationship with a major U.S. retail corporation. This is the kind of customer diversification that builds a more resilient revenue base. Their factories are fully booked through December 2025, which gives them excellent visibility into future revenue.

Here is a snapshot of the full fiscal year 2025 performance:

To dive deeper into how these numbers impact valuation, you should read Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors. Finance: Track the Q3 and Q4 FY2026 revenue guidance to see if the diversification and new shipping routes are offsetting the geopolitical headwinds.

Profitability Metrics

You want to know if Jerash Holdings (US), Inc. (JRSH) can consistently turn its growing revenue into real profit. The short answer is yes, the trend is defintely positive, but the company is still running much leaner than its peers in the apparel manufacturing space. In Fiscal Year 2025 (FY2025), Jerash Holdings (US), Inc. saw substantial margin recovery, driven by operational efficiency gains, but its profitability ratios remain well below the industry average.

For the full FY2025, which ended March 31, 2025, Jerash Holdings (US), Inc. reported a Gross Profit of $22.3 million on $145.8 million in revenue, translating to a Gross Margin of 15.3%. This is a solid improvement from the 14.4% margin in FY2024. More critically, the company achieved an Operating Income of $1.4 million for the year, a major turnaround from the $665,000 operating loss it posted in the prior fiscal year. This is a huge step.

Here's the quick math on the key FY2025 profitability ratios:

• Gross Profit Margin: 15.3%
• Operating Profit Margin: 0.96% ($1.4M Operating Income / $145.8M Revenue)
• Net Profit/Loss: The company was near break-even, with a net loss of only $144,000 in the fourth quarter, showing a clear path to consistent net income.

The story here isn't the final number, but the trajectory. The company's quarterly Gross Margin tells you everything you need to know about its resilience and operational control in a tough environment. The margin started low at 11.3% in Q1 FY2025 due to the Red Sea shipping crisis, but management quickly stabilized the business, pushing the margin to 17.5% in Q2 and a strong 17.9% in Q4. That's operational efficiency in action.

Industry Comparison and Efficiency

When you stack Jerash Holdings (US), Inc.'s performance against the broader industry, you see the challenge. As of November 2025, the Apparel Manufacturing industry average sits at a Gross Profit Margin of 49.3% and an average Net Profit Margin of 3.0%. Jerash Holdings (US), Inc.'s 15.3% gross margin is significantly lower. This is typical for a contract manufacturer versus a brand owner, but it highlights the pressure on cost management.

The firm is addressing this margin gap by focusing on what it can control: costs and scale. They are actively managing logistics, for example, by rerouting shipments to the port of Aqaba, which costs approximately $1,200 per truck versus the $3,200 cost for the Haifa route. Plus, the completion of a manufacturing facility expansion in June 2025, which added 15% to production capacity, is a direct move to lower unit costs through economies of scale. This is how they plan to boost those margins long-term, moving toward their stated goal of a 20% gross margin. You can read more about their strategic focus here: Mission Statement, Vision, & Core Values of Jerash Holdings (US), Inc. (JRSH).

This table summarizes the margin story:

Next step: Track the Gross Margin in the upcoming quarters of FY2026. If it holds above 15% to 16%, it confirms the operational improvements are sticky.

Debt vs. Equity Structure

You want to know how Jerash Holdings (US), Inc. (JRSH) funds its growth, and the answer is simple: mostly through equity and operational cash flow, not debt. This is a conservative, low-leverage approach that significantly de-risks the balance sheet, a major advantage in the volatile apparel manufacturing sector.

For the fiscal year ended March 31, 2025, Jerash Holdings (US), Inc. reported a Debt-to-Equity (D/E) ratio of just 0.09. Here's the quick math: the company's total debt is roughly 9 cents for every dollar of shareholder equity. This is defintely a strong position.

Overview of Debt Levels and Industry Comparison

Jerash Holdings (US), Inc.'s debt structure is remarkably lean, especially when benchmarked against its peers. The company has essentially zero long-term debt, a rarity for a manufacturer with significant property, plant, and equipment.

Its total debt is almost entirely comprised of short-term liabilities, primarily revolving credit facilities used for working capital needs. As of March 31, 2025, the outstanding balance on its credit facilities was $4.512 million. This short-term borrowing is used to finance raw materials and manage the timing difference between paying suppliers and getting paid by major customers like VF Corporation and New Balance.

The 0.09 D/E ratio is a major standout when you look at the broader industry. The average Debt-to-Equity ratio for the Apparel Manufacturing industry in the US, as of November 2025, stands at 0.92. [cite: 3 in first step] Jerash Holdings (US), Inc. is operating with a leverage level that is roughly one-tenth of the industry average. That is a massive margin of safety.

Financing Strategy and Recent Activity

Jerash Holdings (US), Inc.'s financing strategy is clearly built on self-funding and strategic short-term credit, which is a sign of management confidence in future cash flow. Instead of issuing long-term bonds or taking on large bank loans, the company relies on two main sources for operational liquidity:

• Equity and Retained Earnings: The large equity base of $62.816 million acts as the primary capital source.
• Short-Term Credit Facilities: The company uses a facility from DBSHK, which had an outstanding balance of $4.512 million as of March 31, 2025.
• Supply Chain Financing (SCF): This is a key tool. Jerash Holdings (US), Inc. uses a supply chain financing program offered by major customers, like VF Corporation and New Balance, to get paid faster. This incurs interest but is a flexible, non-traditional debt that supports high sales volume without the covenants of a typical bank loan.

In terms of recent activity, the company is expanding its financing options to support growth. On July 31, 2025, Bank al Etihad offered a new credit facility of up to $6.0 million specifically to finance imports. This move is not a sign of financial distress; it's a proactive step to ensure sufficient working capital as the company executes on its expansion plans and manages potential logistics risks, like those seen at the Haifa port. The focus remains on operational efficiency and maintaining a strong balance sheet to support its Mission Statement, Vision, & Core Values of Jerash Holdings (US), Inc. (JRSH).

The clear action for you is to monitor the use of the new $6.0 million facility. If it stays focused on working capital and the D/E ratio remains below 0.20, the capital structure remains excellent.

Liquidity and Solvency

You need to know if Jerash Holdings (US), Inc. (JRSH) has enough liquid assets to cover its short-term bills, especially with the shifting tariff and logistics environment. The direct takeaway is that Jerash Holdings has a remarkably strong liquidity position, indicated by its high current and quick ratios, but the cash flow from operations is tight, which is a near-term risk to watch.

Assessing Jerash Holdings (US), Inc.'s Liquidity

Jerash Holdings' balance sheet, as of September 30, 2025, shows a very healthy liquidity profile. We measure this using the current ratio and the quick ratio (acid-test ratio), which tell us how easily the company can pay its current liabilities (debts due within one year) with its current assets.

Here's the quick math on the most recent figures from the Q2 Fiscal Year 2026 report:

• Current Assets: $55.55 million
• Current Liabilities: $8.00 million
• Inventory: $26.26 million

The resulting ratios are a clear sign of financial strength. Most analysts prefer a Current Ratio above 2.0, and Jerash Holdings is far above that threshold, which is defintely a good sign.

Working Capital and Cash Flow Trends

The company's net working capital (Current Assets minus Current Liabilities) has remained robust, moving from $34.6 million at the end of Fiscal Year 2025 (March 31, 2025) to $35.2 million by September 30, 2025. This slight increase shows they are maintaining a solid buffer, which is crucial in the apparel manufacturing space given the high inventory levels-$26.26 million in inventory alone as of Q2 FY2026.

Still, the cash flow statement overview for the first half of Fiscal Year 2026 shows a tighter picture when it comes to cash generation from core operations. Net cash provided by operating activities for the six months ending September 30, 2025, was only $0.32 million. This compares to the full Fiscal Year 2025, which provided approximately $1.4 million in operating cash flow.

This drop-off in operating cash flow (OCF) for the first half of the year indicates tighter cash conversion, even with higher revenue. The company is generating revenue, but not turning it into cash as efficiently as before. For the full six months of Fiscal Year 2026, the OCF was $0.32 million.

• Operating Cash Flow (OCF): Low for the first half of FY2026, signaling potential pressure on cash conversion.
• Investing Cash Flow: Not fully detailed in the recent report, but typically negative as the company expands production capacity, which they've noted they are doing.
• Financing Cash Flow: Includes the recent approval of a regular quarterly dividend of $0.05 per share on November 7, 2025, which signals confidence in future cash flows, but is an outflow.

The liquidity is excellent on paper, but the low operating cash flow is a potential liquidity concern that investors must monitor closely. If you want to dive deeper into the full financial picture, check out the full post on Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors.

Valuation Analysis

You are looking for a clear signal on Jerash Holdings (US), Inc. (JRSH) right now, and the numbers give a mixed but ultimately compelling picture. The short answer is that the stock appears undervalued based on its book value and enterprise multiples, but its trailing earnings make it look expensive. The analyst consensus leans toward a Buy rating, projecting significant upside from the current price of around $3.26 per share.

Here's the quick math on why the valuation ratios (multiples) tell two different stories. On a trailing basis, the Price-to-Earnings (P/E) ratio is extremely high at 63.88. This signals overvaluation, honestly, because it's based on the last twelve months of relatively low net income. But, the forward-looking picture is much better. The Forward P/E drops sharply to 17.14 as analysts expect earnings per share (EPS) to rebound significantly in the next fiscal year.

Still, the most attractive numbers are the balance sheet and enterprise value multiples.

• Price-to-Book (P/B): At just 0.64, the stock trades at a deep discount to the value of its net assets (equity).
• Enterprise Value-to-EBITDA (EV/EBITDA): This multiple, which accounts for debt and cash, is very low at 5.51, suggesting the core business operations are cheaply valued compared to peers.

Over the last 12 months, the stock price has fluctuated between a low of $2.81 and a high of $4.17. Despite the volatility, the stock is up about 7.59% over the past year, which is a decent return, but it has underperformed the broader S&P 500 Index over the same period. The current price of approximately $3.26 sits well below the 52-week high, suggesting room for a run-up if the forward earnings materialize.

Jerash Holdings (US), Inc. is also a strong income play. The company pays an annual dividend of $0.20 per share, which translates to a high dividend yield of about 6.49%. What this estimate hides, though, is a high Dividend Payout Ratio based on trailing earnings, sitting at around 285.71%. A ratio over 100% means the company is paying out more than it earned in the last year, which is not defintely sustainable long-term. They are likely funding this through cash reserves or debt, but the high forward earnings forecast is what makes the dividend yield appealing to investors who believe in the turnaround.

The consensus among analysts is generally positive. While one recent rating was a Hold with a price target of $3.50, the overall analyst consensus is a Buy. The average target price is $4.50, with a range extending up to $5.00. This implies a potential upside of over 37% from the current price, mapping a clear opportunity for patient investors.

For a more detailed look at the company's operational health and strategic position, you should read our full analysis at Breaking Down Jerash Holdings (US), Inc. (JRSH) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Jerash Holdings (US), Inc.'s (JRSH) strong revenue growth-up to a record $145.8 million in fiscal year 2025-and thinking about the upside. But as a seasoned analyst, I focus on the risks that can quickly erode those gains. The core risks for Jerash Holdings are a mix of geopolitical instability, margin compression, and customer concentration.

Honestly, the biggest near-term threat isn't demand; it's where they operate. You simply cannot ignore the external, geopolitical risks when a company manufactures in Jordan. For example, regional conflicts forced them to explore alternative shipping routes through Aqaba port after disruptions at the Haifa port, which deferred an estimated $3 to $4 million in shipments in the fourth quarter of fiscal 2025. That's a real-world impact on your cash flow.

Here's the quick math on the financial risk: the gross profit margin is under pressure. In the second quarter of fiscal 2026 (ended September 30, 2025), the gross margin dropped to 15.0%, down from 17.5% in the prior year's quarter. This is happening because the cost of goods sold is rising-it hit 85% of sales in Q2 FY2026, up from 82%. Plus, their strategy to diversify the customer and product mix, while smart long-term, is yielding a slightly lower average gross margin in the near term.

• Margin Compression: Rising production costs and product mix shifts are squeezing profit.
• Geopolitical Volatility: Regional conflicts directly impact logistics and shipping costs.
• Tariff Dependency: Changes to US trade agreements could instantly erase their competitive edge.

A major strategic risk is customer concentration. While they are trying to diversify, the sales mix is still heavily weighted toward a few major brands. As of the second quarter of fiscal 2026, VF Corporation alone accounted for 60% of sales, with New Balance contributing another 12%. If either of those customers significantly cuts their order volume, Jerash Holdings' revenue would take a substantial hit-that's a single-point failure you need to track.

The regulatory environment is another critical external factor. Jerash Holdings benefits significantly from Jordan's favorable trade agreements with the U.S. But the U.S. tariff environment is always shifting. For instance, a baseline 10% tariff on imports was implemented in 2025 and later modified to 15% on July 31, 2025. Even with the increase, their effective tariff rate remains significantly more favorable than other major sourcing countries, where rates can range from 20% to more than 60%. Any adverse change to this trade status is a defintely material risk.

Still, management is taking clear actions to mitigate these issues. They are leveraging their position in Jordan as a preferred manufacturing hub and have completed facility expansion to increase production capacity by approximately 15%. They are actively exploring long-term expansion plans, including potential acquisitions, to sustain their competitive edge and scale up to eventually return to a 20% gross margin target. You can read more about their long-term view in their Mission Statement, Vision, & Core Values of Jerash Holdings (US), Inc. (JRSH).

The table below summarizes the key financial and operational risks you should monitor closely:

Your next step should be to model the impact of a 20% reduction in orders from VF Corporation on their net income, using the Q2 FY2026 net income of $0.48 million as your baseline. That will give you a concrete number for this concentration risk.

Growth Opportunities

You're looking at Jerash Holdings (US), Inc. (JRSH) and wondering if the recent revenue growth is a trend or just a blip. Honestly, the company has set a solid foundation for near-term expansion, driven by smart capacity moves and a clear competitive edge in a volatile global supply chain.

For the fiscal year 2025, Jerash Holdings (US), Inc. delivered a record high revenue of $145.8 million, a strong 24.4% increase from the prior year, proving demand is real. This growth, despite regional logistics hurdles, shows their operational resilience. The next step is scaling production to meet this demand.

Here's the quick math on their immediate capacity boost:

• Completed a manufacturing facility expansion in late June 2025.
• Added approximately 15% to production capacity.
• Factories are fully booked through December 2025.

This immediate capacity addition is defintely a key growth driver, but it is just the first phase. They have initiated a long-term expansion plan that includes exploring potential acquisitions and developing their own land to keep pace with increasing capacity requests from global customers.

Future Revenue and Earnings Trajectory

Near-term revenue projections remain optimistic, though margins are under pressure as they diversify their product mix. Analysts are forecasting a consensus revenue estimate of approximately $159.7 million for fiscal year 2026, which would be a solid 9.2% improvement over the last 12 months.

What this estimate hides is the margin pressure from product mix changes and the investment in new customer onboarding. While the company achieved an operating income of $1.4 million in fiscal 2025, a significant turnaround from the prior year's operating loss, the near-term focus is on volume and diversification. The long-term goal is to gradually improve gross profit margins to approximately 20% through increased production automation and economies of scale.

For more on their long-term vision, you can review the Mission Statement, Vision, & Core Values of Jerash Holdings (US), Inc. (JRSH).

Strategic Initiatives and Competitive Moats

Jerash Holdings (US), Inc. is strategically positioned to capitalize on the global trend of supply chain diversification, moving manufacturing away from Asia. Their competitive advantage is simple and powerful: Jordan's trade agreements.

They recently secured a major initial order from one of the largest U.S.-based multinational retail corporations, a direct result of a strategic collaboration with Hansoll Textile. This kind of partnership is the blueprint for future growth.

The company's manufacturing location in Jordan gives them a distinct cost advantage, which is a major draw for U.S. and European brands:

This tariff differential is a massive incentive for global brands seeking to diversify their manufacturing footprint beyond China and Southeast Asia. Plus, they've found that moving from the congested Haifa port to the Aqaba port in Jordan is actually a lower-cost logistical option, which helps mitigate regional geopolitical risks and improves cost control.

Next Step: Track the Q3 fiscal 2026 earnings release for updates on the long-term expansion plan and gross margin trends to see if the diversification strategy is translating to improved profitability.