Sumit Nagal, seeded 21st in the qualifiers, was shown the door by Mohamed Safwat of Egypt
The Australian was warned for bad language and docked a point for unsportsmanlike conduct after throwing his racquet into the stands during Friday's 6-3, 6-4 defeat by Borna Coric in the Murray River Open at Melbourne Park.
Prajnesh Gunneswaran, who was the lone Indian left in the Australian Open qualifiers, lost in the final of the qualifying event on Friday.
India saw a day of mixed fortunes at the Australian Open on Saturday as both, Sania Mirza and Rohan Bopanna won their respective doubles and mixed doubles matches to enter the third round of the opening Grand Slam of the year in Melbourne.