HAL shares gain after small satellite launch tech transfer deal with ISRO

Hindustan Aeronautics Ltd (HAL) has entered into a landmark agreement with the Indian Space Research Organisation (ISRO), the Indian National Space Promotion and Authorisation Centre (IN-SPACe), and NewSpace India Ltd (NSIL) to transfer Small Satellite Launch Vehicle (SSLV) technology.The SSLV is a three-stage vehicle designed to place satellites weighing up to 500 kilograms into Low Earth Orbit (LEO). Under the agreement, HAL will absorb the technology during the first two years, before moving into a ten-year production phase.

The contract grants HAL a non-exclusive, non-transferable licence covering design, manufacturing, quality control, integration, launch operations, post-flight analysis, training, and support. HAL will take responsibility for mass production of the SSLV to serve both domestic and international demand.

“HAL will work closely with IN-SPACe, ISRO, and NSIL to absorb, indigenise, and commercialise the SSLV technology, ensuring the highest standards of quality and reliability in small satellite launch services. HAL recognises the strategic importance of SSLV in meeting the growing demand for launching small satellites for applications in communication, earth observation, navigation, and more,” HAL’s Chairman and MD, D.K. Sunil said.He added that HAL’s efforts would not only ensure indigenous production of SSLVs but also open up new opportunities for Indian MSMEs, start-ups, and the wider industrial ecosystem.

This technology transfer marks HAL’s transition from a component supplier to a comprehensive launch service provider, with the autonomy to build, own, and operate the SSLV.

Meanwhile, the company’s shares have rallied nearly 33% over the past six months. HAL stock gained a further 2% in intra-day trade today.