Lokesh Machines Limited reported a sharp rise in FY26 profitability, with PAT jumping to Rs 3.86 crore from Rs 0.54 crore in FY25, despite operating under US OFAC sanctions for the full year. The company successfully exited the sanctions regime on June 30, 2026, restoring access to international banking and global markets. With a robust Rs 271 crore order book bolstered by defence contracts, the firm is now pivoting toward operational normalization and export growth.
Lokesh Machines FY26: Profit Jumps 7x Amid Sanctions Resolution
FY26 PAT rose to Rs 3.86 crore; OFAC sanctions were officially lifted on June 30, 2026.
Reader Takeaway: Profitability recovered through machinery growth and cost management, now bolstered by fresh defence sector order wins.
What just happened
Lokesh Machines concluded FY26 with a robust operational performance, marked by a 34.2% increase in EBITDA to Rs 38.25 crore. This growth was achieved despite the company operating under US OFAC sanctions for the entirety of the financial year. The company recorded a basic EPS of Rs 1.95, a significant jump from Rs 0.28 in the previous year. Revenue from operations stood at Rs 208.56 crore, reflecting a strategic shift in divisional performance.
Why this matters
The successful delisting from the OFAC sanctions list on June 30, 2026, is a critical turning point for the firm. It removes secondary-sanctions risks for partners, reopens vital US and European export markets, and restores international banking channels (USD/EUR). This development effectively eliminates the primary overhang that had constrained the company's international operations for 20 months.
The backstory
From October 2024 to June 2026, Lokesh Machines navigated a challenging regulatory environment. The management took proactive steps by engaging specialized legal counsel, diversifying supply chains, and reinforcing the balance sheet through promoter capital infusion. These measures allowed the firm to maintain its investment-grade credit ratings (ACUITE and CARE BBB-/A3) even during the period of restriction.
Order Book
As of August 12, 2026, the company holds an order book of Rs 271 crore. A significant contributor is a Rs 58.21 crore order from the Ministry of Defence (Army) for medium machine gun upgradation kits, highlighting the company’s increasing penetration into the domestic defence manufacturing space.
Governance and Compliance
The company disclosed non-compliance regarding board composition under SEBI (LODR) regulations, leading to fines of Rs 6.136 lakh each from BSE and NSE. The board was successfully reconstituted in November 2025 to meet regulatory standards. Statutory auditors have issued no adverse remarks for the period.
What to track next
Investors should monitor the speed at which the company restores international banking relationships and the pace of export volume recovery. Future growth will be tied to the execution of the defence-heavy order book and the performance of the Machinery division, which remains the company’s core growth engine.