HAL shares in focus after bagging Rs 511 crore deal to acquire ISRO’s SSLV rocket technology

Hindustan Aeronautics Ltd (HAL) shares will be in focus after the company won a Rs 511 crore contract to acquire the Indian Space Research Organisation’s (ISRO) Small Satellite Launch Vehicle (SSLV) technology. The deal marks one of the most significant transfers of launch vehicle technology from ISRO to a commercial entity.

Under the agreement, HAL will independently build, own, and operate SSLV rockets, with ISRO providing training and handholding support for the first two missions over the next two years. The development was announced by the Indian National Space Promotion and Authorisation Centre (IN-SPACe), the country’s space regulator and promoter, on Friday.

HAL’s standalone bid beat two consortiums—one led by Adani-backed Alpha Design Technologies (along with Agnikul Cosmos and Walchand Industries) and another led by Bharat Dynamics (with Skyroot Aerospace, Keltron, and BHEL).


“This is one of the first instances of a space agency transferring complete launch vehicle technology to a company. Under this transfer agreement, HAL will have the capability to independently build, own, and commercialise SSLV launches,” said Pawan Goenka, Chairman, IN-SPACe.

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HAL aims to manufacture 6-8 SSLV rockets per year, depending on demand, and is expected to generate about $6.5 million in revenue per launch. SSLV is a three-stage, solid-propulsion rocket by ISRO to launch small satellites of about 500 kg into a 500 km orbit. It's designed to be cost-effective and flexible, offering launch-on-demand capabilities with reduced turnaround times.

“The system is multidisciplinary in nature and will require rigorous training of HAL personnel at both ISRO and HAL sites,” said Rajeev Jyoti, director, technical directorate at IN-SPACe.

IN-SPACe added that a rigorous eligibility and evaluation framework was followed. “The process, which continued for several months, culminated in the financial bid evaluation, where HAL emerged as the highest bidder to acquire and operationalise SSLV technology,” it said in a statement.

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The SSLV technology transfer will be formalised through an agreement involving HAL, ISRO, NewSpace India Ltd (NSIL) and IN-SPACe.

HAL’s director of finance, Barenya Senapati, said winning the bid was in line with HAL’s larger goal of entering the space sector in a bigger way than it has been doing in the past. He added that the new portfolio will not affect its current operations.

HAL and Larsen & Toubro (L&T) are already jointly building ISRO’s trusted Polar Satellite Launch Vehicles (PSLV) rockets under a contract with NewSpace India Limited (NSIL). The contract for five PSLV rockets is worth Rs 860 crore, that is, each PSLV rocket costs approximately Rs 172 crore to build.

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HAL shares rose 1.18% to close at Rs 4,960 on Friday. The stock has gained 30% in the past three months and over 150% in the last two years.

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