Lakshya, who had claimed the Belgian Open last month, entered the quarterfinals after registering a fighting three-game win over Ygor Coelho of Brazil.
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The 18-year-old from Almora defeated Coelho 21-13 16-21 21-10 in a tough pre-quarterfinal contest that lasted for 43 minutes.
Rahul too advanced to the last eight round after stunning sixth seed Victor Svendsen of Denmark 21-17 24-26 21-8 in marathon one hour and 14 minutes contest.
Another Indian in fray, top seed Sameer Verma, who had skipped events at China and Korea due to fitness issues, will take on Japan’s Yusuke Onodera in the round of 16 later on Thursday night.