Lokesh Machines Limited Announces Significant New Order

Lokesh Machines Limited (LML), a prominent player in the Indian machine tools industry, has recently secured a substantial new order valued at ₹80.00 crore. This development marks a significant milestone for the company and is expected to have a positive impact on its financial performance.

Order Details

• Order Value: ₹80.00 crore
• Client: Undisclosed (as per company announcement)
• Nature of Order: Supply of machined components

Impact on Company Performance

The new order is anticipated to contribute significantly to LML's revenue stream. While the specific timeline for order execution has not been disclosed, it is expected to bolster the company's order book and potentially improve its financial outlook for the coming quarters.

Company Background

Lokesh Machines Limited, headquartered in Hyderabad, India, specializes in the manufacturing of CNC machines, machined components, and sub-assemblies. The company has been serving various sectors including automotive, aerospace, and general engineering industries.

Market Reaction

Following the announcement, investors and market analysts will be closely watching LML's stock performance. Such large orders often lead to positive sentiment among shareholders and could potentially impact the company's stock price in the short term.

Conclusion

This new order worth ₹80.00 crore represents a significant business opportunity for Lokesh Machines Limited. It not only demonstrates the company's strong market position but also indicates potential growth in its core business segments. Shareholders and potential investors should monitor the company's future announcements for more details on the order execution and its impact on financial results.

Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to conduct their own research and consult with financial experts before making investment decisions.

Lokesh Machines Limited (LML), a prominent player in the machine tools industry, has faced a significant setback as Acuite Ratings & Research Limited downgraded its credit ratings. This development comes in the wake of the company's inclusion in the US Treasury's Office of Foreign Assets Control (OFAC) sanctions list, which has disrupted its supply chain and impacted production.

Credit Rating Downgrade

Acuite Ratings has lowered LML's long-term rating from 'ACUITE BBB' to 'ACUITE BBB-' and its short-term rating from 'ACUITE A3+' to 'ACUITE A3' on bank facilities totaling Rs. 208.42 crore. The outlook has been revised to 'Stable,' and the ratings have been removed from 'Under Watch with Negative Implications.'

Key Factors Behind the Downgrade

The downgrade reflects a deterioration in LML's operating performance, which began in Q3 FY2025 and continued into H1 FY2026. The primary reasons for this decline are:

1. Disruption in the supply of electronic components from a key supplier
2. Adverse impact on production
3. Decline in scale of operations

Financial Performance

The impact of these challenges is evident in LML's financial performance:

The company's H1 FY2026 operating revenue moderated to Rs. 98.48 Cr, compared to Rs. 137.84 Cr in H1 FY2025.

Current Status and Outlook

As of October 16th, 2025, LML has an unexecuted order book position of Rs. 116 Cr. The company has initiated steps to address the sanctions issue and anticipates a favorable outcome in the near term. However, Acuite notes that the scale of operations is likely to remain subdued in the short term as proceedings are ongoing.

Company Background

Lokesh Machines Limited, founded in 1983, is a well-established player in the machine tools industry with over four decades of experience. The company specializes in designing and manufacturing custom-built special purpose machines, CNC machines, and components for various industries, including automotive and defense.

Strengths and Challenges

Despite the current setbacks, LML maintains some positive aspects:

• Healthy financial risk profile with a net worth of Rs. 212.36 Cr as of March 31, 2025
• Low gearing at 0.63 times
• Long-standing presence and expertise in the machine tools segment

However, the company faces challenges such as:

• Working capital intensive operations with high inventory days
• Intense competition in the industry
• Concentration risk in the auto segment

As the situation evolves, stakeholders will be closely monitoring LML's efforts to resolve the sanctions issue and its impact on the company's financial and operational performance in the coming quarters.