By Aparna Deb,News18

Copyright news18

HAL Share Price: Hindustan Aeronautics Ltd (HAL) share price traded higher on Wednesday after the PSU company signed a Technology Transfer Agreement for the Small Satellite Launch Vehicle (SSLV) with multiple space agencies. The defence PSU stock gained as much as 1.38% to Rs 4,515 apiece on the BSE.
HAL announced it has signed the agreement with Indian National Space Promotion and Authorisation Centre (IN-SPACe), NewSpace India Limited (NSIL), and the Indian Space Research Organisation (ISRO).
SSLV Technology Transfer
The SSLV is a three-stage vehicle designed to launch satellites weighing less than 500 kg into Lower Earth Orbit (LEO). Under the contract, HAL will absorb the technology in the first two years, followed by a 10-year production phase.
“The agreement grants HAL a non-exclusive, non-transferable license to the SSLV technology, which includes comprehensive design, manufacturing, quality control, integration, launch operations, and post-flight analysis documentation, as well as training and support,” the company said in a regulatory filing on September 10.
HAL will be responsible for the mass production of SSLV to meet both Indian and global demand, it added.
Through this transfer, HAL will now have the autonomy to build, own, and operate the launch vehicle—a move that aligns with its long-term strategy to establish a dedicated space vertical. This strategic step allows HAL to transition from a component supplier to a comprehensive launch service provider and a key player in the fast-growing small satellite market, the company said.
Analysts’ Take
Krishna Doshi, Defence Analyst at Ashika Institution Research, said the initiative enhances HAL’s growth optionality beyond defence aviation, potentially creating new revenue streams in the global small satellite launch services market.
“Execution will remain a key monitorable, particularly around technology absorption and competitive positioning versus private players, but strategically, this move is a strong positive for HAL’s long-term value creation,” Doshi said.
Looking ahead, with the ramp-up in LCA Mk1A production (two units slated for delivery in the near term), the analyst expects double-digit topline growth for HAL, accompanied by progressive margin expansion driven by higher indigenization levels and easing supply-chain constraints.
Q1FY25 Performance
In Q1FY25, HAL reported a net profit of Rs 1,306 crore, rising 9% year-on-year, while revenue from operations came in at Rs 6,644 crore, up 7% compared to the year-ago period. EBITDA margins expanded to 25.4% from 24.1% in Q1FY24, reflecting improved operational efficiency and higher contribution from indigenous platforms. The company also reported an order book position of over Rs 94,000 crore, providing robust revenue visibility.
HAL Share Price Performance
HAL share price has remained flat over the past month and declined 12% in three months. However, the stock has rallied 32% in six months and gained 8% year-to-date (YTD). Over the past year, HAL shares have dipped 4%, but over a five-year period, the stock has delivered multibagger returns of 942%.
At 13:45 PM, HAL share price was trading 1.12% higher at Rs 4,503.55 apiece on the BSE.