HAL Signs SSLV Deal, Expands Role in Space Industry
HAL receives third GE-404 engine, eyes SSLV production.
India’s leading public sector aerospace giant, has taken a significant step forward in bolstering the nation’s defense and space capabilities. On Thursday, HAL received the third GE-404 engine from the United States for the Light Combat Aircraft (LCA) Mark-1A programme, according to a report by ANI. This milestone strengthens India’s indigenous fighter jet program, with the fourth engine expected to arrive by the end of September 2025, further accelerating the LCA Mark-1A’s development.
The GE-404 engines are critical to powering the LCA Mark-1A, an advanced variant of India’s homegrown Tejas fighter jet, designed to enhance the Indian Air Force’s operational capabilities. The arrival of these engines marks a pivotal moment in the program, ensuring that HAL can maintain its production timeline for this state-of-the-art combat aircraft, which is poised to play a key role in India’s defense strategy.
In addition to its aerospace achievements, HAL is expanding its footprint in the space sector. The company recently secured a prestigious contract to manufacture the Small Satellite Launch Vehicle (SSLV) rockets, developed by the Indian Space Research Organisation (ISRO). HAL emerged as the successful bidder for the SSLV project in June 2025, outpacing competitors to take on this ambitious venture. On Wednesday, HAL signed a technology transfer agreement with the Indian National Space Promotion and Authorisation Centre (IN-SPACe), NewSpace India Ltd., and ISRO, formalizing its role in the SSLV program.
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Under the terms of the agreement, HAL will absorb the SSLV manufacturing and design technology over the first two years, followed by a 10-year production phase. This move positions HAL as a key player in India’s burgeoning space industry, enabling the company to contribute to the nation’s goal of becoming a global leader in small satellite launches. The SSLV, designed to carry payloads of up to 500 kg into low Earth orbit, is expected to revolutionize India’s access to space by offering cost-effective and flexible launch solutions for both domestic and international clients.
HAL’s dual achievements in aerospace and space have also sparked positive sentiment in the financial markets. On Thursday, HAL’s stock surged by as much as 1.02% to Rs 4,604 per share on the National Stock Exchange (NSE). As of 10:25 a.m., the stock was trading 0.52% higher at Rs 4,581, outperforming the benchmark Nifty 50, which remained flat. Despite a 0.40% decline over the past 12 months and a 9.62% drop on a year-to-date basis, investor confidence in HAL remains strong. The stock’s trading volume on Thursday was significantly higher than its 30-day average, reflecting robust market interest. The relative strength index (RSI) stood at 66.27, indicating positive momentum.
Analyst sentiment further underscores HAL’s promising outlook. According to Bloomberg data, 18 out of 22 analysts tracking the company have issued a ‘buy’ rating, with two recommending a ‘hold’ and two suggesting a ‘sell.’ The consensus 12-month target price for HAL’s stock is Rs 5,646.6, implying a potential upside of 23.6%, a testament to the market’s optimism about HAL’s growth trajectory in both defense and space sectors.
HAL’s latest milestones highlight its pivotal role in advancing India’s self-reliance in defense and space technologies. The successful integration of the GE-404 engines into the LCA Mark-1A program and the company’s foray into SSLV production underscore its commitment to innovation and excellence. As HAL continues to strengthen India’s aerospace and space capabilities, it is poised to cement its position as a cornerstone of the nation’s strategic and technological ambitions.
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