Lokesh Machines Limited , a player in the machinery and components sector, has announced its financial results for the second quarter of the fiscal year 2026, ending September 30, 2025. The company reported a mixed bag of results, showing growth in revenue but facing challenges on the international front.

Financial Highlights

The company's performance for Q2 FY26 and H1 FY26 is summarized in the table below:

Segment-wise Performance

Lokesh Machines operates through two main segments:

1. Machinery Division: Reported revenue of Rs 4,897.86 lakhs
2. Components Division: Generated revenue of Rs 165.75 lakhs

Corporate Actions

During the quarter, the company saw significant corporate action:

• 2,43,398 warrants were converted into equity shares by promoters
• No warrants remain pending for conversion

US Treasury Sanctions

In a challenging turn of events, Lokesh Machines found itself on the US Treasury Department's sanctions list, published on October 30, 2024. This development has prevented the company from engaging in foreign currency transactions, potentially impacting its international operations.

Management Response

The company's management has taken swift action to address the sanctions issue:

• An application has been filed through a US-based law firm on January 31, 2025
• The company is seeking expedited removal from the sanctions list

Market Perspective

While the company has shown growth in its top line, the sanctions issue presents a significant challenge that investors should monitor closely. The management's proactive approach in addressing this issue is a positive sign, but the outcome and its impact on future operations remain uncertain.

Financial Trends

Analyzing the company's financial data over the past year:

The company has shown resilience in its revenue and EBITDA figures, with a notable recovery in net profit compared to the previous quarters.

Investors and stakeholders will be keenly watching how Lokesh Machines navigates the challenges posed by the US sanctions while maintaining its operational growth. The company's ability to resolve this issue promptly will be crucial for its international business prospects and overall financial health in the coming quarters.

Lokesh Machines Limited , a Hyderabad-based manufacturing company, has taken a significant step towards removing itself from the U.S. sanctions list. The company recently filed documents with the Office of Foreign Assets Control (OFAC), U.S. Department of the Treasury, seeking expedited removal from the list of Specially Designated Nationals and Blocked Persons.

Key Developments

• Lokesh Machines has submitted necessary documents and information through its U.S.-based lawyers to OFAC.
• The filing is in response to a questionnaire from OFAC for expedited removal/reconsideration of the company's designation.
• This action follows the company's previous communication to stock exchanges on September 27, 2025, regarding the sanctions issue.

Company's Stance

Lokesh Machines has assured its shareholders that it is taking all necessary steps to have its name removed from the OFAC Sanctions list. The company views this filing as a major step towards achieving this goal.

Transparency and Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Lokesh Machines has promptly informed the stock exchanges about this development. The company has committed to providing ongoing updates to the exchanges and shareholders regarding future developments in this matter.

About Lokesh Machines Limited

Lokesh Machines Limited is a manufacturing company headquartered in Hyderabad, Telangana. The company operates multiple units across Balanagar, Bonthapally, Medchal, Toopran, and Ranjangaon-Pune.

The outcome of this filing and its potential impact on Lokesh Machines' operations and market standing remains to be seen. Investors and stakeholders are advised to keep a close watch on further announcements from the company regarding this matter.