As Vikram-1 reaches orbit, Skyroot faces a steep climb to business success

India carried out its first private orbital rocket launch at 12.05 pm on July 18. So far, all orbital rockets India has launched as part of its space program have been government-funded and managed by the Indian Space Research Organization (ISRO). Hyderabad-based Skyroot Aerospace has changed this by launching its small satellite launch vehicle Vikram-1 into low earth orbit. The mission was named ‘Aagaman’, which means ‘arrival’ in Hindi.

Since 2020, the Indian government has opened up the domestic space sector to private companies by creating institutions such as IN-SPACe and allowing private firms to build launch vehicles and use ISRO infrastructure. So far, only a small number of private companies worldwide have successfully developed orbital launch vehicles, including SpaceX, Rocket Lab, Firefly Aerospace and a number of Chinese firms. A similarly short list, including ABL Space Systems and Isar Aerospace, is still seeking success.

significant success

A successful first flight is a significant achievement. Many rockets, including the famous Falcon 9, failed on their first flights. But that same success also demonstrates the full context in which Skyroot currently operates. As a business enterprise, a single launch, no matter how important, will not make the company successful. The global small satellite launch market is evolving and there are still significant challenges, including domestic demand and market uncertainties.

Former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka founded Skyroot Aerospace in 2018. Skyroot Aerospace’s first milestone occurred in 2022 when it successfully launched Vikram-S, the first Indian rocket specifically developed for sub-orbital flight.

Vikram-1 is a four-stage rocket. Solid fuel is used in the first three stages, and liquid fuel is used in the fourth stage. Skyroot said it could produce one Vikram-1 rocket per month once production was streamlined.

Mission Aagaman was a developmental flight of Vikram-1. This means that the company specifically tests the rocket by testing it to check parameters that are not fully understood unless the rocket flies. According to the company, Mission Aagaman was to verify stage separation, propulsion, guidance and navigation, structural performance, avionics, fairing deployment, upper stage separation and orbital insertion.

Getting itself into the intended orbit would be the most difficult part of the mission, as the launch vehicle would need to accelerate to high speed while maintaining its guidance and thrust.

Although the main mission focused on the rocket itself, it also carried some payloads. Vikram-1 has the capacity to carry 290 kg payload to a 500-kilometer sun-synchronous orbit and 480 kg to a low-inclination orbit at a similar altitude. Skyroot said it will conduct two more development flights from now on before the rocket is deemed ready for market.

“The company’s roadmap includes Vikram-2, capable of carrying up to 1,000 kg to low earth orbit, with its first flight targeted for 2027, and a fully reusable launch vehicle with both the booster and upper stage designed for recovery and reuse,” the company said in a post-launch statement.

start a business

Building a rocket is one thing. Starting a business is one thing, and arguably much more valuable. Overall, the small satellite launch market, where Skyroot hopes to succeed, has proven challenging. A successful business today requires growth as well as industrial maturity and access to demand.

In the half-decade leading up to 2021, many forecasts predicted an explosion in demand for launching satellites weighing 100-500 kg. Although demand has increased since then, not every company that has entered the market has been equally profitable. Launch vehicle revenues are growing more slowly than satellite production, creating consolidation pressure. The forecast assumed that demand would be dispersed across businesses, but after a series of geopolitical realignments, demand is today increasingly concentrated in satellite constellations.

Skyroot’s co-founders are Naga Bharath Daka and Pawan Kumar Chandana. | Photo Credit: The Hindu

On the cost front, many small satellite manufacturers are flying their payloads as common vehicles on larger rockets, particularly the SpaceX Falcon 9. The launch fee has therefore dropped significantly. Additionally, although a launch vehicle dedicated to small satellites would offer flexibility and the option to choose specific orbits to deploy, satellite manufacturers would still have to pay some premium over the lower costs offered by shared launches.

PSLV itself is one such launcher; However, public confidence in PSLV’s capabilities has been eclipsed by two successive failures, and the government has refused to explain their reasons.

However, Vikram-1 may have an advantage for India in the form of lower production and labor costs, access to ISRO’s infrastructure, and the country’s increased focus on manufacturing, including satellites.

Subsequently, start-ups in Europe, the US, China, Japan and Australia are also developing small satellite launchers, and many have either shut down or turned back after trying to secure launch contracts from an already small pool of customers. Vikram-1 will also compete with ISRO’s own new Small Satellite Launch Vehicle.

Third, launch services are low-margin and capital-intensive, especially compared to satellite manufacturing, downstream applications, data services, and communications. Then there are the costs of debris mitigation and compliance with other regulatory obligations. Of course, Skyroot itself may diversify in the future after gaining a foothold in the industry. India’s own commercial space ecosystem is just beginning to expand and includes potential future collaborators such as Pixxel, Bellatrix Aerospace and Dhruva Space. Despite this, the domestic market remains relatively limited.

big picture

The big picture is that the Skyroot factory, which has the capacity to produce 12 Vikram-1 rockets every year, will be an asset if there is demand for 12 Vikram-1 launches every year. But today even ISRO does not launch 12 small satellites per year. In other words, Skyroot will need to find and secure international customers.

When it does, it will have to confront a simple fact: Even if small satellites make up a third of all satellites launched (as some forecasts say they will in the decade to 2035), they will only account for less than a tenth of the total launch mass.

None of this diminishes what Skyroot accomplished on Saturday. Designing, building, testing and flying an orbital launch vehicle on the first attempt is a rare feat anywhere in the world. This is definitely a turning point for India’s private space sector. But the companies that survive appear to repeatedly reach orbit through a reliable process, at prices customers are willing to pay.

With the success of Mission Aagaman, Skyroot now has an opportunity to build this type of business.

It was published – 19 July 2026 08:00 IST