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20-Nov-2025 13:43
Lokesh Machines slips after credit rating downgrade
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.
Net profit of Lokesh Machines 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.
Lokesh Machines, incorporated in 1983, manufactures CNC machines, special-purpose machines, and precision engineering components across six facilities in Hyderabad and Pune.
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