Hyderabad-based Lokesh Machines has secured a ₹58.21 crore ($6 million) contract from the Indian Army to supply modification kits for FN MAG 7.62×51mm medium machine guns, marking a major expansion of its role in India’s defence manufacturing program.

This order significantly boosts its order book and aligns with the government’s push for indigenous defence production under the ‘Make in India’ initiative.

Lokesh Machines Limited announced that the contract was awarded by the Master General Sustenance Branch of the Integrated Headquarters, Ministry of Defence (Army). The order is valued at ₹58,20,89,421 inclusive of all duties and taxes. It involves the supply of MOD kits designed to enhance the operational capability of the FN MAG 7.62×51mm medium machine gun, a widely used platform in the Indian Army.

The company clarified that the award does not constitute a related-party transaction and that neither its promoters nor members of the promoter group have any interest in the contract. This transparency underscores the credibility of the deal and its importance for the company’s defence portfolio.

Lokesh Machines has traditionally been engaged in manufacturing special purpose machines, CNC lathes, connecting rods, and machining cylinder blocks and heads.

However, in recent years, it has pivoted towards defence manufacturing, including joint development of the indigenous Asmi machine pistol with DRDO. This latest order demonstrates institutional acceptance of its defence capabilities and marks a milestone in its transition from industrial machinery to defence hardware.

Financially, the company has shown strong growth. For Q4 FY26, Lokesh Machines reported revenue of ₹59.36 crore, a 53.5% year-on-year surge. Net profit rose sharply to ₹2.15 crore compared to just ₹12 lakh in Q4 FY25. The ₹58.21 crore defence contract nearly matches its entire quarterly revenue, providing substantial visibility for future earnings and strengthening its order pipeline.

The MOD kits for FN MAG MMGs are expected to improve reliability, ergonomics, and adaptability of the weapon system, ensuring better performance in diverse operational environments. Such upgrades are critical for the Indian Army, which continues to modernise its small arms inventory to meet evolving battlefield requirements.

The order also reflects the government’s continued emphasis on self-reliance in defence procurement. By awarding contracts to domestic firms like Lokesh Machines, the Ministry of Defence is reinforcing the indigenous manufacturing ecosystem and reducing dependence on foreign suppliers. This programmatic approach is expected to create long-term opportunities for Indian companies in the defence sector.

Lokesh Machines’ successful entry into defence manufacturing highlights the growing role of private industry in India’s strategic programs. Precision engineering, adherence to stringent quality standards, and the ability to deliver complex defence equipment are now central to its business model.

The company is well positioned to benefit from future indigenous defence programs as India expands investments in domestic production.

Agencies