Lokesh Machines will hold its 42nd Annual General Meeting on Tuesday, September 22, 2026. The company closed FY26 with profitability restored and an order book at a five-year high, despite operating under US OFAC sanctions.

The notice was issued pursuant to regulation 34 of SEBI Listing Obligations & Disclosure Requirements Regulations, 2015. The Annual Report and AGM notice are available on the company website and exchange portals.

Meeting Details

The AGM will be conducted through video conferencing or other audio-visual means. Members can participate remotely without physical presence.

Business Agenda

Shareholders will consider and adopt the audited financial statements for FY26 and the reports of the Board of Directors and auditors. The meeting will also see the re-appointment of Mr. K. Krishna Swamy (DIN: 00840887) as a director, who retires by rotation.

Additionally, shareholders will ratify the remuneration of M/s Naval & Associates as Cost Auditors for FY27. The approved remuneration is ₹1,00,000 plus out-of-pocket expenses up to ₹10,000 excluding GST.

Document Availability

The Notice of AGM and the Annual Report for FY26 are sent electronically to members with registered email IDs. These documents are also available on:

• The company website
• BSE Limited and NSE India websites
• NSDL e-voting portal

E-mail Registration

Members holding shares in physical mode must update their email IDs with the company or Registrar and Share Transfer Agent using Form ISR-1. Demat account holders should register or update their emails with their Depository Participants.

Voting Process

Shareholders can cast votes through the electronic voting system via NSDL. The remote e-voting period begins on Friday, September 18, 2026, at 9:00 am and ends on Monday, September 21, 2026, at 5:00 pm. Remote e-voting credentials will be sent via email. Those who do not receive credentials can generate them using instructions in the AGM notice. The same login credentials allow attendance at the AGM via video conferencing.

Lokesh Machines reported a significant turnaround in profitability for the quarter ended June 30, 2026, with net profit rising 121.7% year-on-year to ₹1.01 crore. Revenue from operations grew 15.4% to ₹55.46 crore, marking the end of the sanctions era for the capital goods manufacturer after its removal from the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List on the last day of the quarter.

The financial performance was underpinned by a resurgent Defence and Components division, which saw revenue surge 693% to ₹15.55 crore, contributing 27.9% of total income compared to just 4.1% a year ago. This growth offset a 13.2% decline in the Machinery division, which remained constrained by blocked export channels during the sanctions period. The reopening of USD and EUR banking channels is expected to restore access to US and European markets for the Machinery segment starting Q2FY27.

Financial Performance

Despite a sharp rise in raw material costs, Lokesh Machines maintained pricing discipline, keeping EBITDA margin at 17.79%, only 60 basis points lower than the 18.39% recorded in Q1FY26. Gross profit expanded 17.0% year-on-year to ₹30.72 crore, outpacing revenue growth and demonstrating operating leverage.

*Note: Q1FY26 revenue derived from YoY growth percentage provided in source.

What the Numbers Show

A critical divergence exists between the top-line growth and the bottom-line expansion. While revenue grew modestly by 15.4%, net profit more than doubled. This disparity is largely attributable to a reduction in the effective tax rate, which eased to 28.5% from 36.6% in the prior year, alongside the high-margin contribution from the Defence segment. Additionally, finance costs remained elevated at ₹4.65 crore, constituting the largest expense below EBITDA, highlighting the continued pressure of debt servicing despite the recent equity infusion.

Balance Sheet and Order Book

The company strengthened its capital structure during the quarter, infusing ₹23.62 crore through preferential equity issuance. Capital employed rose 16.3% quarter-on-quarter to ₹265.55 crore, driven primarily by a 33.4% increase in capital deployed in the Defence and Components division as production ramped up.

Lokesh Machines holds an order book of ₹271 crore as of August 12, 2026, which exceeds the total revenue of the previous financial year (₹209.62 crore). The order pipeline is diversified, with General Purpose Machines accounting for 38.0%, Defence for 36.2%, and Special Purpose Machines for 13.7%. A recent ₹58.21 crore order from the Ministry of Defence for machine gun modification kits underscores the strength in the defence vertical.

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 12, 2026. The statutory auditors have issued a limited review report with an unmodified conclusion for the quarter ended June 30, 2026.