Lokesh Machines Ltd

Utilization certificate update

• Certificate for utilization of issue proceeds for the quarter ended June 30, 2026.
• Auditors Brahmayya & Co issued the certificate as per BSE in-principle approval dated April 30, 2026.

Listing approvals and capital impact

• BSE and NSE grant listing approval for 5,00,000 equity shares on preferential basis.
• Shares allotted to non-promoters on preferential issue.
• Post-listing paid-up capital to Rs 21,79,67,700 (2,17,96,770 shares).
• In-principle listing approval for 5,00,000 shares issued on conversion of warrants.
• Listing subject to depository confirmation and standard conditions.
• Listing approvals received from BSE and NSE in Aug 2026.

Deviation status and fund utilisation

• No deviation or variation in utilisation of proceeds from equity shares and convertible warrants.
• Mode of fund raising: issuance of Equity Shares and Convertible Warrants.
• Audit Committee reviewed the deviation/variation statement.
• Statement submitted in XBRL mode with the financial statements.
• Status: utilisation aligned with stated objects; no deviation observed.

Financial performance

• Revenue from operations ₹55.46 crore; YoY +15.4%, QoQ -6.6%.
• EBITDA ₹9.92 crore; margin 17.79%.
• PAT ₹1.01 crore; EPS ₹0.49.
• OFAC delisting completed 30 June 2026; USD/EUR channels reopen.
• Preferential equity infusion ₹23.62 crore; total capital employed ₹265.55 crore.
• Order book ₹271.00 crore as of 12 Aug 2026.

Segment performance

• Machinery revenue ₹40.22 crore; -13.2% YoY; PBIT ₹5.15 crore; margin 12.8%.
• Defence & Components revenue ₹15.55 crore; +693% YoY; PBIT ₹2.15 crore; margin 13.8%.
• Revenue mix: Machinery 72.1%, Components 27.9%.

Order book & visibility

• Order book ₹271.00 crore; multi-quarter visibility.
• Defence orders 36.2% of order book.
• MoD order ₹58.21 crore received July 15, 2026.
• Low lead-time mix converts 38% of book to revenue within year.

Capital structure & liquidity

• Total capital employed ₹265.55 crore.
• Preferential equity infusion ₹23.62 crore; warrants outstanding 22.78 lakh.
• 00 lakh warrants converted to equity on 11 July 2026.

Strategic priorities & outlook

• Way forward: maximize production capacity; expand Defence revenue; enter new markets post delisting.
• Accelerate ESG initiatives across operations.
• OFAC delisting supports recovery into FY27.

Financial results & approvals

• Standalone unaudited Q1 FY2026 results approved; revenue INR 5,545.74 lakhs; net profit INR 101.01 lakhs; LR unmodified.
• Directors Report with annexures for year ended 31 March 2026 approved.
• Notice for 42nd AGM on Sept 22, 2026 via Video Conferencing issued.
• Cost Audit Report for year ended 31 March 2026 approved.
• Secretarial Audit Report for year ended 31 March 2026 approved.
• Appointment of Mr. L.D. Reddy as Scrutinizer for 42nd AGM.
• Cut-off date for e-voting fixed at Sept 15, 2026.

Capital actions & share issuance

• During quarter ended June 30, 2026, issued 13,00,000 equity shares and 27,77,919 warrants on preferential basis.
• On July 11, 2026, 5,00,000 warrants converted to equity; paid-up capital increased to 2,17,96,770 shares.
• As of Aug 12, 2026, 22,77,919 warrants pending.

Regulatory & governance updates

• OFAC designation removed; delisted on 30 June 2026; Indian government confirmed on 8 July 2026.
• No subsidiary, associate, or JV as of June 30, 2026.
• Results published per SEBI LODR; available on BSE/NSE and company website.

Auditor remarks

• Independent auditor's review reports no material misstatement; reference to sanction list note.

Order details

• Awarding entity: Master General Sustenance Branch, Integrated Headquarters, Ministry of Defence (Army), Government of India.
• Nature and scope: Supply of MOD kits for 7.62MM Medium Machine Guns.
• Total value: Rs 58,20,89,421 inclusive of all duties and taxes.
• Entity is domestic.
• Contract type: Supply order.
• No promoter group interest; not a related-party transaction.
• Date/time of occurrence: July 15, 2026, 12:45 IST.

Capital action

• Approved conversion of 5,00,000 warrants into equity shares.
• Allotted 5,00,000 equity shares of Rs 10 each.
• Post-conversion paid-up capital: Rs 21,79,67,700.
• Total equity shares after conversion: 2,17,96,770.
• Allotment to Ashok Atluri (Non-Promoter) as per Annexure I.
• Warrants converted at Rs 181.71 per warrant.
• Amount received on exercise: Rs 6,81,41,250 (75% of price).
• New shares rank pari-passu with existing shares.
• Issuance type: conversion of warrants via preferential allotment.

Regulatory update

• MEA intimated Lokesh Machines' removal from the OFAC SDN List.
• Letter dated July 8, 2026 confirming removal; information received July 9, 2026.
• Event information received on July 9, 2026 at 11:10 IST.

Senior Management Change

• COO Sandeep Avinash Dorle ceases on superannuation; effective close of business hours July 10, 2026.