Microcap stock jumps 15% after receiving order from Ministry of Defence for Machine pistols

Synopsis: The shares of the company gained massively today after they received a supply order from the Defence Ministry worth around Rs 22 crore.

The shares of the company that manufactures Special Purpose Machines, General Purpose Machines /CNC Lathes, Connecting Rods, and machining of Cylinder Blocks and Heads, are in focus after receipt of work from Ministry of Defence.

With a market capitalization of Rs  377 crore, Lokesh Machines Ltd’s shares on Monday made a day high of Rs 194.55 per share, up by 15 percent from its previous day’s close price of Rs 169.05 per share. The shares have given a return of 340 percent over the last five years.

Significant Order

The company has received a domestic order worth Rs 22 crores from the Ministry of Defence, Advanced Weapons and Equipment India Limited, for the Supply of 9×19 mm Machine pistols consisting of Sub-Assemblies/ Components, to be executed on or before March 19, 2026.

This client will add to the company’s Marquee Clientele, which includes private players like Mahindra, Honda, and Bajaj etc., and government-owned players like Northern Command, BSF, etc. Looking at segment revenue break-up as of Q2 FY26, the Machinery division has contributed about Rs 48.97 crore and the components division has contributed about Rs 1.65 crore to the company’s revenue.

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About the company

Established in 1983 and commencing operations in 1985 in Hyderabad, Lokesh Machines Limited (LML) has established itself as a specialist in manufacturing CNC Machines and special-purpose machines, Auto components, and Small arms. The company excels in producing Finish Cam & Crank Boring, Finish Barrel Boring, and Finish Joint Faces Milling machines, besides the regular General Purpose machines. 

Financial highlights, revenue from operations declined by  33 percent to Rs 50.43 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Net profit declined by 81.7 percent YoY to Rs 0.63 crore in Q2 FY26, leading to ROCE of 4.87 percent and ROE of 0.26 percent.

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