LOKESHMACH - Lokesh Mach.
📢 Recent Corporate Announcements
Lokesh Machines Limited has successfully allotted 13,00,000 equity shares and 27,77,919 convertible warrants on a preferential basis. The equity shares were issued at Rs 181.71 each, providing an immediate capital infusion of Rs 23.62 crore. Additionally, the company received Rs 12.62 crore as a 25% upfront payment for the warrants, which are convertible into equity within 18 months. The total potential fundraise amounts to approximately Rs 74.1 crore, involving both promoters and non-promoter investors.
- Allotment of 13,00,000 equity shares at Rs 181.71 per share to non-promoter entities.
- Issuance of 27,77,919 convertible warrants at an exercise price of Rs 181.71 per warrant.
- Immediate total cash inflow of approximately Rs 36.24 crore from equity and warrant subscriptions.
- Promoter group participated significantly in the warrant allotment, signaling long-term confidence.
- Paid-up equity share capital increased from 1,99,96,770 to 2,12,96,770 shares post-allotment.
Lokesh Machines Limited has received in-principle approval from both BSE and NSE for a significant preferential issue of securities. The company will issue 13,00,000 equity shares and 27,77,919 convertible warrants at a fixed price of Rs. 181.71 per unit. The total fundraise is valued at approximately Rs. 74.12 crores and involves participation from both promoters and non-promoters. This move indicates a strong capital infusion to support the company's growth objectives or balance sheet strengthening.
- Received in-principle approval for 13,00,000 equity shares and 27,77,919 convertible warrants
- Issue price set at Rs. 181.71 per security for both shares and warrants
- Total potential capital infusion of approximately Rs. 74.12 crores upon full conversion
- Allotment to be made to both promoters and non-promoters on a preferential basis
Lokesh Machines Limited has provided key clarifications regarding its upcoming Extraordinary General Meeting (EGM) for a proposed preferential issue of equity shares and warrants. The company clarified that while promoters and Key Managerial Personnel (KMP) will not participate in the equity share issue, specific promoters including Mr. Bollineni Kishore Babu and others intend to subscribe to warrants. Additionally, the company disclosed the Ultimate Beneficial Owners (UBO) of Zandra Herbs & Plantations LLP as Mr. Sharvil Ramanbhai Patel and Mr. Pankaj Ramanbhai Patel. The valuation report for the issue has been confirmed to comply with SEBI Regulation 166A.
- Promoters and KMPs will not participate in the preferential equity issue but will subscribe to warrants.
- Ultimate Beneficial Owners of Zandra Herbs & Plantations LLP identified as Sharvil Ramanbhai Patel and Pankaj Ramanbhai Patel.
- Specific promoters participating in warrants include Mr. Bollineni Kishore Babu, Mr. Mullapudi Srikrisha, and others.
- Valuation report confirmed to be in compliance with SEBI ICDR Regulation 166A.
- Clarification issued as an amendment to the original EGM notice dated March 12, 2026.
Lokesh Machines Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that all share dematerialization and rematerialization requests for the quarter ended March 31, 2026, have been processed. This is a standard administrative filing required by SEBI to ensure the integrity of the company's shareholding records with depositories. It indicates that the company is maintaining its regulatory obligations regarding share transfers and electronic record-keeping.
- Compliance certificate submitted for the quarter ended March 31, 2026.
- Issued by Registrar and Share Transfer Agent (RTA), KFin Technologies Limited.
- Confirms that securities received for dematerialization were processed and reported to stock exchanges.
- Mandatory filing under SEBI (Depositories and Participants) Regulations, 2018.
Lokesh Machines Limited has received shareholder approval for a significant capital restructuring and fundraising initiative. During the Extraordinary General Meeting held on April 03, 2026, shareholders unanimously passed resolutions to increase the authorized share capital and issue equity shares and warrants on a preferential basis. A total of 10,641,477 votes were cast, representing 53.22% of the total shareholding, with 100% of those votes in favor of the proposals. This approval paves the way for the company to proceed with its planned equity infusion.
- Unanimous approval (100% in favor) for the issuance of equity shares on a preferential basis
- Shareholders approved the issuance of warrants on a preferential basis to raise capital
- Authorized share capital to be increased following the alteration of the Memorandum of Association
- Total votes polled reached 10,641,477 out of 19,996,770 total shares (53.22% turnout)
- Promoter group showed strong participation with 10,538,834 votes cast in favor
Lokesh Machines Limited has received shareholder approval at an Extraordinary General Meeting (EGM) held on April 03, 2026, to amend its Memorandum of Association. The primary change is the alteration of the Capital Clause to increase the company's Authorized Share Capital to ₹25 crore. This capital is now structured as 2.5 crore equity shares with a face value of ₹10 each. This move is a strategic step that provides the company with the necessary headroom for future equity-based fundraising or corporate actions.
- Shareholders approved the alteration of the MOA Capital Clause at the EGM on April 03, 2026.
- Authorized Share Capital increased to ₹25,00,00,000 (Twenty-Five Crore).
- Total equity shares authorized now stand at 2,50,00,000 with a face value of ₹10 per share.
- The amendment enables the company to issue further shares for expansion or capital infusion in the future.
Lokesh Machines Limited has announced the closure of its trading window starting April 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the audited financial results for the quarter and full year ending March 31, 2026. The window will remain closed for all designated persons, including promoters and directors, until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced later.
- Trading window closure effective from April 1, 2026, for all designated persons.
- Closure is in anticipation of the Audited Financial Results for the quarter and year ending March 31, 2026.
- The window will reopen 48 hours after the financial results are officially declared.
- The date for the Board Meeting to approve the results will be intimated separately in due course.
Lokesh Machines Limited has been awarded a contract worth ₹9.50 crore by the Sashastra Seema Bal (SSB), Ministry of Home Affairs. The order entails the supply of 9x19mm Carbine Sub-Machine Guns (SMGs) and accessories. This domestic order is scheduled for completion within 180 days from the Letter of Award. This win underscores the company's diversification into defense equipment manufacturing, aligning with national procurement initiatives.
- Total order value stands at ₹9,50,01,741 inclusive of all taxes and duties
- Contract awarded by the Directorate General, Sashastra Seema Bal (SSB), Government of India
- Product involves the latest SMG (9x19mm Carbine) along with accessories
- Project execution timeline is fixed at 180 days from the Letter of Award
Lokesh Machines Limited has filed a clarification regarding its previous board meeting outcome dated March 6, 2026. The update addresses typographical errors in the names of three specific allottees mentioned in the original filing. The corrections involve fixing spelling errors for two individuals and updating one allottee name from Mr. Yugandhar Meka to Mrs. Rajini Meka. This is a purely administrative filing with no impact on the company's financial performance or strategic direction.
- Correction of typographical error for allottee Mr. Kishore Babu Bollineni
- Spelling correction for allottee Mr. Mullapudi Ajay Kumar
- Name update for allottee from Mr. Yugandhar Meka to Mrs. Rajini Meka
- Company assured increased vigilance for future regulatory submissions
Lokesh Machines Limited has scheduled an Extra-Ordinary General Meeting (EGM) on April 03, 2026, to approve a significant capital raise. The company proposes to increase its authorized share capital from ₹22 crore to ₹25 crore to accommodate new issuances. A key agenda item is the preferential allotment of 13,00,000 equity shares to non-promoter investors at a price of ₹181.71 per share. This move is expected to infuse approximately ₹23.62 crore into the company to support its operational and financial objectives.
- Proposed increase in Authorized Share Capital from ₹22,00,00,000 to ₹25,00,00,000.
- Preferential issue of 13,00,000 equity shares at a fixed price of ₹181.71 per share.
- Total fundraise through equity allotment aggregates to approximately ₹23.62 crore.
- Allottees include Zenila Ventures LLP and five other non-promoter individuals/entities.
- Relevant date for price determination is March 04, 2026, with a 100% upfront payment requirement.
Lokesh Machines Limited was fined ₹2,41,900 each by BSE and NSE for non-compliance with SEBI Regulation 17(1) regarding board composition for the quarter ended December 31, 2025. The company explained that the delay in appointing directors is due to mandatory prior approval required from the Ministry of Home Affairs (MHA) under the Arms Act, 1959. The Board met on March 06, 2026, and has formally applied for a penalty waiver, citing these statutory limitations. The financial impact is negligible, and the issue appears to be a procedural bottleneck rather than a governance lapse.
- BSE and NSE imposed fines of ₹2,41,900 each (Total ₹4,83,800) for board composition non-compliance.
- Non-compliance occurred during the quarter ended December 31, 2025.
- Company requires prior MHA approval for any change in directorship due to its small arms manufacturing business.
- A waiver application has been submitted to the exchanges under the SEBI SOP Circular policy.
- The Board reiterated its commitment to corporate governance standards once MHA approvals are received.
Lokesh Machines has announced a major fundraise through the preferential allotment of 40.77 lakh securities at a fixed price of ₹181.71 per unit. The issuance includes 13 lakh equity shares and 27.78 lakh convertible warrants, involving both promoters and public investors. To facilitate this, the company is increasing its authorized share capital from ₹22 crore to ₹25 crore. This capital infusion is a positive signal of growth intent and has been scheduled for shareholder approval at an EGM on April 3, 2026.
- Preferential allotment of 40,77,919 securities at ₹181.71 per unit, totaling approximately ₹74.1 crore.
- Issue consists of 13,00,000 equity shares and 27,77,919 convertible warrants.
- Authorized share capital increased from ₹22 crore to ₹25 crore to accommodate the new issuance.
- Significant participation from promoters including Kishore Babu Bollineni and Mullapudi Sri Krishna.
- Extraordinary General Meeting (EGM) scheduled for April 03, 2026, to seek shareholder approval.
Lokesh Machines Limited has received notices from BSE and NSE imposing a fine of ₹2,41,900 each (totaling ₹4,83,800) for non-compliance with SEBI Regulation 17(1) regarding board composition. The company stated the delay in appointing an independent director was due to mandatory 90-day prior security clearance required from the Ministry of Home Affairs (MHA) under the Arms Act. A new director was appointed on November 11, 2025, after receiving the necessary government approvals. The company is currently representing its case to the stock exchanges to seek a waiver of these penalties.
- Total fine of ₹4,83,800 (including GST) imposed by BSE and NSE for Q3 FY26 non-compliance.
- Non-compliance with Regulation 17(1) occurred following the resignation of an independent director.
- Company cited mandatory MHA approval under the Arms Act, 1959 as the reason for the appointment delay.
- New Independent Director was successfully appointed on November 11, 2025.
- Company is filing for a waiver of the penalty based on overriding legal provisions of the defense sector.
Lokesh Machines reported a flat sequential revenue of ₹5,073.04 lakhs for Q3 FY26, compared to ₹5,043.03 lakhs in Q2 FY26. The company turned profitable on a year-on-year basis, posting a net profit of ₹62.59 lakhs against a significant loss of ₹410.34 lakhs in Q3 FY25. However, the nine-month revenue for FY26 has dropped to ₹14,920.78 lakhs from ₹18,962.89 lakhs in the previous year. A major operational hurdle remains the US Department of Treasury sanctions, which continue to restrict foreign currency transactions.
- Q3 FY26 Net Profit stood at ₹62.59 lakhs, recovering from a loss of ₹410.34 lakhs in the same quarter last year.
- Revenue from operations remained nearly flat sequentially at ₹5,073.04 lakhs vs ₹5,043.03 lakhs in Q2 FY26.
- Machinery division remains the primary revenue driver contributing ₹4,681.72 lakhs, while the Components division contributed ₹407 lakhs.
- Finance costs remain high at ₹475.26 lakhs for the quarter, representing nearly 9.3% of total revenue.
- Company filed an application with the US OFAC on January 31, 2025, for removal from the Specially Designated Nationals list.
Lokesh Machines Limited has secured a domestic supply order worth Rs 6.30 crore (inclusive of taxes) from the Directorate General, Assam Rifles, under the Ministry of Home Affairs. The contract involves the supply of 9x19mm Carbines along with essential accessories, spares, and gauges. The order is expected to be executed within a short timeframe of 90 days from the acceptance of the tender. This win highlights the company's growing traction and validation in the specialized defense manufacturing sector.
- Order value of Rs 6,30,42,507 inclusive of all duties and taxes
- Awarded by Directorate General, Assam Rifles for 9x19mm Carbines
- Execution timeline of 90 days from the date of acceptance of tender
- Includes supply of essential spares, gauges, and accessories
- Domestic contract reinforcing the company's defense segment capabilities
Financial Performance
Revenue Growth by Segment
Overall revenue declined 22.22% in FY2025 to INR 228.32 Cr from INR 293.54 Cr in FY2024. The Machine Tools Division saw healthy growth in H1 FY2025 but was derailed by sanctions in H2. H1 FY2026 revenue further moderated to INR 98.48 Cr, a 28.55% decline compared to INR 137.84 Cr in H1 FY2025.
Geographic Revenue Split
The company exports to over 7 countries including Russia, Italy, the US, Bahrain, and Turkey. Specific percentage split per region is not disclosed, but international operations were severely impacted by the inability to enter foreign currency transactions since October 30, 2024.
Profitability Margins
Net Profit (PAT) fell sharply by 96.12% to INR 0.54 Cr in FY2025 from INR 13.85 Cr in FY2024. PAT margin plummeted from 4.72% to 0.24% due to higher depreciation and finance costs. Gross margins are exposed to raw material price fluctuations with a time lag in passing costs to customers.
EBITDA Margin
EBITDA margin decreased from 13.88% in FY2024 to 12.51% in FY2025. This 137 bps compression was driven by a decline in the scale of operations while fixed costs remained relatively unchanged.
Capital Expenditure
Promoters infused INR 15.56 Cr in FY2025 through the conversion of warrants into equity to bolster liquidity. No major debt-funded capital expenditure is planned for the near term to maintain the financial risk profile.
Credit Rating & Borrowing
CARE downgraded long-term facilities to CARE BBB-; Stable from CARE BBB; Negative and short-term facilities to CARE A3 from CARE A3+. Acuite placed ratings under 'Rating watch with Negative Implications' due to OFAC sanctions.
Operational Drivers
Raw Materials
Electronic components (specifically noted as disrupted by sanctions), steel, and castings for machine tool manufacturing. Specific percentage of total cost for each is not disclosed.
Import Sources
Not disclosed in available documents, though disruption occurred in the supply of electronic components from a key international supplier due to OFAC sanctions.
Key Suppliers
Not disclosed in available documents; however, a 'key supplier' of electronic components suspended operations with the company following the October 2024 sanctions.
Capacity Expansion
Operates 6 manufacturing units across Hyderabad and Pune. While specific MT/unit capacity is not disclosed, the company is focusing on harnessing expanded capacities in the Defence Division to introduce new product lines.
Raw Material Costs
Raw material costs are a significant portion of the cost structure; margins are exposed to price fluctuations because the order-based nature of operations creates a time lag in adjusting final product prices.
Manufacturing Efficiency
Manufacturing efficiency is supported by a workforce of 651+ employees and investments in training to ensure they are adept with latest technologies. Specific utilization % is not disclosed.
Strategic Growth
Growth Strategy
Growth is targeted through the Defence Division, where LML is the first private Indian company to supply small arms to elite forces. Strategy includes expanding geographic reach, entering new territories for machine tools, and diversifying into the forgings segment with new orders from customers in Pune.
Products & Services
Cam & Crank Borers, Fine Borers, Finish Milling Machines, General Purpose Machines, Special Purpose Machines, and small arms (weapons) for the Indian Army, NSG, and BSF.
Brand Portfolio
Lokesh Machines Limited
New Products/Services
Small arms and precision assemblies for MMG weapons for the Indian Army; high-value machines added to the product range to improve average sales value and margins.
Market Expansion
Expanding into new domestic territories and international markets such as Russia and Italy, though currently constrained by sanctions.
Market Share & Ranking
Ranks among India's top five machine tool manufacturers; holds a leading position in Cam & Crank Borers, Fine Borers, and Finish Milling Machines.
Strategic Alliances
Collaborating with a US-based law firm for regulatory clearance and exploring forge work opportunities with other industry players to mitigate revenue loss.
External Factors
Industry Trends
The machine tool market is growing due to demand in aerospace, defence, and infrastructure. LML is positioning itself by shifting from pure automotive focus to indigenous defence manufacturing.
Competitive Landscape
Faces intense competition in the machine tool industry; competing with both domestic players and international manufacturers.
Competitive Moat
Moat is built on a 40-year legacy, top 5 market position in specific machine categories, and a first-mover advantage as a private sector small arms supplier to the Indian military.
Macro Economic Sensitivity
Highly sensitive to the cyclical nature of the auto-component industry and macroeconomic forces affecting machine tool demand.
Consumer Behavior
Shift toward indigenous 'Make in India' products in the defence sector is positively affecting demand for LML's new weapon systems.
Geopolitical Risks
Significant risk from US Department of Treasury sanctions (OFAC), which has led to a decline in operating income and restricted access to international financial systems.
Regulatory & Governance
Industry Regulations
Subject to Ministry of Home Affairs (MHA) approvals for defence manufacturing and US OFAC regulations which currently restrict international trade.
Environmental Compliance
Investing in Sewage Treatment Plants (STPs) to recycle wastewater and increasing green cover at manufacturing locations in Hyderabad and Pune.
Legal Contingencies
Application pending before the Office of Foreign Assets Control (OFAC), U.S. Department of Treasury, for removal from the sanctions list. The company is also representing to stock exchanges for a waiver of penalties related to independent director vacancies.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for removal from the OFAC sanctions list; continued inclusion will likely keep the scale of operations subdued. Potential impact is a continued 20-30% revenue suppression.
Geographic Concentration Risk
Manufacturing is concentrated in Hyderabad and Pune; export revenue is at risk due to current trade restrictions.
Third Party Dependencies
High dependency on a key supplier for electronic components, which caused production disruptions when the supplier halted shipments due to sanctions.
Technology Obsolescence Risk
Risk of falling behind in precision machining; mitigated by continuous investment in workforce training and new product development in the defence sector.
Credit & Counterparty Risk
Adequate liquidity with net cash accruals of INR 14.41 Cr against maturing debt of INR 8.86 Cr. Receivables quality is supported by established relations with government defence agencies and top-tier industrial clients.