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Sourabh suffered a 15-21 21-19 21-18 first-round defeat to Dwicahyo in a match that lasted one hour and seven minutes.
Sourabh Verma crashed out of the Super 500 tournament.
The 25-year-old Indian, who is on a comeback trail after recovering from injuries, overcame Japan's Koki Watanabe 19-21, 21-12, 21-17 in the finals.
Young mixed doubles pair of Kuhoo Garg and Rohan Kapoor also continued their impressive run to enter the summit clash.
Sourabh Verma went down in straight games to World No. 22 Tzu Wei in the summit clash to miss out on his maiden Super 300 crown.
Second seed Sourabh recovered from a mid-game slump to beat Sun 21-12, 17-21, 21-14 in the summit clash .
Former champion Kidambi Srikanth and Sourabh Verma advanced to the quarterfinals but young Lakshya Sen bowed out of the men's singles contest at the Syed Modi International Badminton tournament here on Thursday.
However, it was end of the road for Sourabh Verma, who went down after winning the first game to local favourite Kim Donghun 21-13, 12-21, 13-21.
Kidambi Srikanth advanced to the men's singles second round after his opponent Kento Momota's pull-out while Sourabh Verma entered the main draw after clinching straight-game wins in his two qualifying clashes.
A gritty Sourabh Verma entered the men's singles final after a hard-fought three-game win over Korea's Heo.
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