Annual Report-2025-26

Regd. Office: B-29, EEIE Stage II, Balanagar, Hyderabad - 500 037, Telangana, INDIA Phone: +91-40-23079310,11,12,13, Email: info@lokeshmachines.com Website: www.lokeshmachines.com, CIN: L29219TG1983PLC004319 August 27, 2026 To To BSE Limited National Stock Exchange of India Limited Department of Corporate Services Listing Department Floor 25, PJ Towers, Plot No. C/1, G Block, Exchange Plaza, Dalal Street, Mumbai- 400001 Bandra Kurla Complex, Bandra(E), Mumbai- 400051 Scrip Code: 532740 Company Code: LOKESHMACH Dear Sir/Madam, Sub: Annual Report for the financial year 2025-26. Pursuant to regulation 34 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we are enclosing herewith Annual Report along with Notice of 42nd Annual General Meeting for the financial year 2025-26. The Annual Report along with Notice of 42nd Annual General Meeting for the financial year 2025-26 is being sent to all shareholders whose email IDs are registered with the RTA/Depositories and is also being made available on the Company's website at https://www.lokeshmachines.com/. This is for your information and record. Thanking You, Yours sincerely, For Lokesh Machines Limited P. Kodanda Rami Reddy Company Secretary & Compliance Officer Encl.: a/a Units: Balanagar, Bonthapally, Medchal, Toopran, Ranjangaon-Pune. 2025-26 Annual Report Resilience. Rebuilding. Readiness. A year in which, despite operating in full under US OFAC sanctions, we diversified our customer base, scaled our defence business, and rebuilt our engineering platform — closing FY26 with profitability restored, and order book at a five-year high. Lokesh Machines Limited Precision Engineering for India's Manufacturing & Defence Future As India deepens its push toward indigenous defence production and precision manufacturing, demand is accelerating for machine tools built to global standards—and for the engineering depth that lets a domestic maker serve automotive, defence and general-engineering customers from a single base. At Lokesh Machines, we pair four decades of machine-tool expertise with in-house design and R&D to deliver CNC and Special Purpose machines, Precision Auto Components, Forgings and indigenously developed Small Arms trusted by automotive OEMs, Tier-1 suppliers and the Indian Armed Forces respectively. What sets us apart is manufacturing depth across six units in Hyderabad and Pune, coupled with design-led capability in high-speed multi-axis machines, transfer lines and defence systems. Our engineering is built to substitute imports, engineered to scale, and proven on the shop floors of more than 5,000 clients across seven-plus countries—a base reinforced through FY26 by customer diversification, expanded defence deliveries and the compliance discipline the sanctions year demanded. Inside Corporate Information 01 Financials FY25 - FY26 02 MD’s Letter 04 Leadership 08 Statutory Reports 11 Financial Statements 77 Notice 123 Disclaimer: The information and opinions contained in this document do not constitute an offer to buy any of Lokesh Machines Ltd’s securities, businesses, products, or services. The document might contain forward-looking statements qualified by words such as ‘expect’, ‘plan’, ‘estimate’, ‘believe’, ‘project’, ‘intends’, ‘exploit’, and ‘anticipates’, that we believe to be true at the time of the preparation of the document. The actual events may differ from those anticipated in these statements because of risk, and uncertainty of the validity of our assumptions. Lokesh Machines Ltd does not take on any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Corporate Information BOARD OF DIRECTORS CHIEF FINANCIAL OFFICER REGISTRARS & TRANSFER AGENTS M Yugandhar V Sudhakara Reddy Independent Director & KFin Technologies Limited COMPANY SECRETARY Chairman of the Board Selenium Building, Tower-B, Mullapudi Lokeswara Rao P Kodanda Rami Reddy Plot No 31 & 32, Financial Managing Director (w.e.f. 15 August 2025) District, Nanakramguda, Serilingampally, Hyderabad, B Kishore Babu BANKERS Rangareddy, Telangana, Whole-time Director State Bank of India India 500032 M Srinivas Punjab National Bank Email ID: einward.ris@kfintech.com Whole-time Director Phone: 1800 309 4001 Indusind Bank Limited M Srikrishna Whole-time Director REGISTERED OFFICE STATUTORY AUDITORS D Balaji B-29, EEIE, Stage II, Brahmayya & Co., Independent Director Balanagar, Chartered Accountants Hyderabad 500037 Wg Cdr KV Sanil Babu 403 & 404, Golden Green Telangana, India Independent Director Apartments, Irum Manzil CIN: L29219TG1983PLC004319 (Appointed as Colony, Hyderabad 500 082 Independent Director WORKS w.e.f 11 November 2025) INTERNAL AUDITORS Temple Road M Likhitha KS Rao & Co. Bonthapally, Medak District Non-executive Director Chartered Accountants Telangana, India K Krishna Swamy Hyderabad, Telangana, India Non-executive Director B-25 & 36, EEIE, Stage II, Balanagar Hyderabad 500037 SECRETARIAL AUDITORS STATUTORY COMMITTEES Telangana, India M/s LD Reddy & Co. Audit Committee Plot No 41 Company Secretaries M Yugandhar: Chairperson IDA, Balanagar Flat No. 504, Afzal D Balaji: Member Hyderabad 500037 Commercial Complex, M Srinivas: Member Besides MMTS Rly. Station Telangana, India Nomination & Hyderabad 500004 Ravalkol Village Remuneration Committee Telangana, India Medchal Mandal Rangareddy District Mr D Balaji: Chairperson Telangana, India (appointed as Chairman w.e.f. 08 July 2025) Sy. No. 148, Kallakal Village M Yugandhar: Member Manoharabad Mandal M Likhitha: Member Toopran, Medak District Telangana, India Stakeholders Relationship Committee Plot No. D-260/1 D Balaji: Chairperson Ranjangaon Industrial Area (appointed as Chairman MIDC, Shirur w.e.f. 08 July 2025) Pune, Maharashtra B Kishore Babu: Member M Srikrishna: Member Statutory Reports Lokesh Machines Limited 1 Resilience. Rebuilding. Readiness. (₹ in crore) Revenue from operations fell to 228 ₹208.56 crore in FY26 from ₹228.32 crore in FY25, an 8.7% decline as OFAC Sanctions weighed on the FY25 Auto Component division recovery for most of the year even as the Machinery division grew over the FY26 same period. That resilience showed up in the margin line before it showed up in revenue. EBITDA rose to ₹38.25 38.2 crore from ₹28.50 crore, and the EBITDA margin to 18.34% from 12.48%, as a shift toward 28.5 FY26 higher-realisation configurations and stringent expense control more than offset the lower FY25 revenue base. The result was profit that turned firmly positive: profit after tax rose to ₹3.86 crore from FY26 ₹0.54 crore, a near seven-fold increase off a low base, lifting the net profit margin to 1.85% from 0.24%. Basic and diluted EPS stood at ₹1.95 against ₹0.28. FY25 And that momentum shows up starkly in the +84.1% order book. From ₹59.4 crore as on 271 31 March 2025, it grew to ₹147.2 crore by 31 March 2026 — up 147.8% — and further to +147.8% ₹271 crore by 12 August 2026, up by another 147.2 84.1% in just over four months, positioning the Company's pipeline for the year ahead. 59.4 31 Mar 25 31 Mar 26 12 Aug 26 2 Annual Report 2025-26 FY26 was the year Lokesh Machines held its ground under US OFAC sanctions, then began rebuilding on every measure that matters — and closed the year positioned for what comes next. The eight numbers across this spread trace that arc: from a managed revenue reset, through a sharp recovery in margins and profitability, to a balance sheet and order book that are already pointing toward FY27. (₹ in crore) That order-book visibility was matched by a balance sheet being rebuilt from strength, not necessity. Net worth rose to ₹228.30 crore 213 FY26 from ₹212.82 crore, aided by ₹11.79 crore of preferential-allotment proceeds — capital FY25 committed by promoters even as the Components division absorbed the OFAC shock. Total assets grew alongside it, rising to ₹495.89 crore from ₹427.87 crore, a 15.9% 428 FY26 increase driven almo [Showing first 8,000 characters — download PDF for full document]