The 24-year-old Indian failed to provide any resistance during a 0-9 loss to the World Championship bronze medallist at the Carioca Arena 2 - WR Mat B.
Khatri started the first round poorly as he had no answers to the 26-year-old's moves. Leading 4-0, the Hungarian took one more point to seal the first round in two minutes and 55 seconds.
Lorincz then sealed his place at the 1/4 finals, effecting a huge take-down to gain four more points.
Wrestling rules state that if a point gap of 8 or more is established between a grappler and the opponent, the leading contestant wins the bout by technical superiority.
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