Lokesh Machines Limited has disclosed receiving fine notices from both BSE and NSE for non-compliance with board composition regulations under SEBI LODR Regulations. The regulatory breach occurred during the quarter ended December 31, 2025, following the resignation of an independent director, leading to violations of Regulation 17(1) requirements.

Fine Details and Financial Impact

The stock exchanges have imposed penalties on the company for the regulatory non-compliance:

Regulatory Constraints Under Arms Act

The company has cited specific regulatory constraints that contributed to the compliance delay. As a manufacturer of small arms, Lokesh Machines Limited operates under the provisions of the Arms Act, 1959, and Arms Rules, 2016, which impose additional regulatory requirements:

• Prior approval from the Ministry of Home Affairs (MHA) is mandatory for any directorship changes
• Applications for new directors must be submitted 90 days in advance
• Security clearance proforma and self-declarations are required for all proposed directors
• Physical submission of applications to the Arms Section is mandatory

Remedial Actions and Current Status

The company has taken corrective measures to address the board composition issue:

Company's Response Strategy

Lokesh Machines Limited plans to contest the penalties by filing detailed responses with both exchanges. The company will present valid legal reasons for the compliance delay, emphasizing the overriding nature of Arms Act provisions that prevented timely director appointment. The company is seeking complete waiver of the imposed fines through the prescribed processes of both BSE and NSE.

Disclosure and Transparency

The company has made the disclosure in compliance with Regulation 30 of SEBI LODR Regulations and SEBI Master Circular dated November 11, 2024. All relevant information has been made available on the company's website at www.lokeshmachines.com , ensuring transparency with stakeholders regarding the regulatory matter and its resolution efforts.

Lokesh Machines has announced a major breakthrough in its defence business segment with the successful acquisition of a ₹22.00 crore contract for supplying critical defence components. The contract, awarded by the Ministry of Defence through Advanced Weapons and Equipment India Limited, specifically involves the supply of 9X19mm machine pistol consisting sub-assemblies and components, marking a significant expansion in the company's defence manufacturing portfolio.

Contract Details and Execution Timeline

The defence contract secured by Lokesh Machines focuses on the production and supply of precision components for 9X19mm machine pistols. The company disclosed this development under Regulation 30 of SEBI (LODR) Regulations through formal filings to BSE Limited and National Stock Exchange of India Limited. The event occurred on January 04, 2026, at 11:15 AM (IST), with the contract carrying a strict execution deadline requiring completion on or before March 19, 2026.

Regulatory Compliance and Documentation

Lokesh Machines has fulfilled all regulatory requirements by submitting comprehensive disclosures to both BSE Limited and National Stock Exchange of India Limited. The company's filing, signed by P. Kodanda Rami Reddy, Company Secretary & Compliance Officer, includes detailed annexures as per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The documentation confirms that the contract does not involve any related party transactions and has been awarded at arm's length, with no interest from promoters or group companies in the awarding entity.

Strategic Significance for Defence Production

This contract award positions Lokesh Machines as a key supplier in India's defence manufacturing ecosystem. The company's ability to secure this substantial order reflects its manufacturing expertise and quality standards that meet defence industry specifications. The domestic nature of the contract aligns with India's focus on indigenous defence manufacturing and the government's push for self-reliance in defence production.

Impact on Business Operations

The ₹22.00 crore defence contract is anticipated to boost Lokesh Machines' defence production growth substantially. With a tight execution timeline of approximately two and a half months, the company will need to mobilize its manufacturing capabilities efficiently to meet the March 2026 deadline. This development validates the company's technical competencies and manufacturing capabilities in producing precision defence components, potentially opening doors for future defence manufacturing opportunities.