The contract is for the supply of a fish liner boring and deck face milling SPM machine. The supply is scheduled to be completed before the end of June 2026.
Lokesh Machines confirmed that the order is domestic in nature and does not fall under related-party transactions.
Lokesh Machines is engaged in the business of manufacture of special purpose machines (SPM), general purpose machines/CNC lathes (GPM), connecting rods and machining of cylinder blocks and heads.
On a standalone basis, Lokesh Machines' net profit declined 81.74% to Rs 0.63 crore while net sales declined 33.05% to Rs 50.43 crore in Q2 September 2025 over Q2 September 2024.
Earlier this month, Acuite Ratings & Research downgraded the company's credit ratings on both long-term and short-term bank facilities.
Acuite cut its long-term rating to ACUITE BBB- / Stable from ACUITE BBB and its short-term rating to ACUITE A3 from ACUITE A3+ on Rs 208.42 crore bank facilities. The ratings were also removed from "Under Watch with Negative Implications." The downgrade was communicated to the company on 19 November 2025.
Acuite cited a sharp deterioration in operating performance since Q3 FY25 following Lokesh Machines’ inclusion in the U.S. Office of Foreign Assets Control (OFAC) sanctions list. The sanction disrupted electronic component supplies from a key vendor, hurting production and revenue. The agency noted that operating performance remained weak in H1 FY26 and is likely to stay subdued until the sanctions issue is resolved.
The rating agency also flagged the company’s working-capital-intensive operations, marked by high inventory levels and long execution cycles, along with intense competition in the machine tools industry.
Acuite, however, acknowledged Lokesh Machines’ long operating history, established customer relationships and a healthy financial risk profile.