“Space is the ultimate high ground. We must secure it now — or risk being left blind.” That powerful warning from Air Marshal Ashutosh Dixit at the Surveillance and Electro Optics India seminar earlier this month sums up a growing concern within India’s defence circles.
With China rapidly advancing its space warfare capabilities, India is now racing to strengthen its own space-based intelligence, surveillance, and reconnaissance (ISR) systems.
For years, India’s Space-Based Surveillance (SBS) programme has been in the making. But it was Operation Sindoor that served as a wake-up call. The mission highlighted just how critical it is to have a real-time, autonomous satellite network that the military can rely on during a military crisis.
In response, the government is now fast-tracking the Rs 269.7 billion (bn) SBS phase-3 program cleared back in October 2023. The plan is ambitious: 52 dedicated defence satellites by 2029, with the first set to launch as early as April next year.
In this backdrop, here are 3 Indian companies that could benefit from the growing strategic push to strengthen space-based defence infrastructure.
Hindustan Aeronautics (HAL)
First on the list is Hindustan Aeronautics (HAL).
HAL is an Indian public sector aerospace and defense company. It is a partner of ISRO, which contributes to the country’s space ambitions by creating important components and assemblies.
Its aerospace division produces satellite and rocket hardware made from aluminum alloy structures, decorative and cylindrical tanks, brackets, rings and sheets.
Among its most crucial contributions are heat shields, fuel tanks, and nose cones used in satellites and launch vehicles.
To launch 52 defence satellites by 2029, demand for Indian launch vehicles is expected to increase, especially in the small and microsatellite segment.
HAL stands to benefit from this. In a major boost, HAL was awarded the complete technology transfer (ToT) for the Small Satellite Launch Vehicle (SSLV) by the Indian space regulator (IN-SPACe) in June 2025.
The Rs 5.1 bn deal gives HAL full ownership of the SSLV technology, including ISRO’s training and two developmental launch vehicles. Post-transfer, HAL can independently manufacture and sell SSLV rockets and offer commercial launches.
Additionally, in collaboration with L&T, HAL is building India’s first privately assembled Polar Satellite Launch Vehicle (PSLV).
Looking ahead, HAL is positioning itself to scale its presence in aerospace, tapping into the growing intersection of defence and space technologies.
L&T
Next on the list is L&T. Larsen & Toubro (L&T) is an Indian multinational company that has been involved in India’s space program for more than 50 years.
For the Chandrayaan-3 mission, L&T has played an important role by making equipment like the exact monopulus tracking radar (PMTR).
In its Coimbatore facility, L&T is working with HAL, to manufacture India’s first privately constructed Polar Satellite Launch Vehicle (PSLV).
L&T is also producing equipment for deep-space exploration programs.
With the government planning to launch 52 dedicated defence satellites by 2029, there will be a sharp rise in demand for satellite manufacturing, ground control infrastructure, and launch services.
L&T, with its engineering depth and partnerships with HAL and ISRO, is well-positioned to benefit.
Bharat Electronics
Next on the list is Bharat Electronics (BEL).
BEL is an established player in the ground segment of satellite communication. The company designs, develops, and manufactures a wide range of SATCOM systems, including satellite networks, HUBs, manpack terminals, mobile terminals (SoTM), antennas, and ground-based terminals.
BEL has state-of-the-art facilities including Clean Rooms, Autoclaves M/c, Testing Facilities, QA & Environment Labs, EMI/EMC Facilities, Aerospace/CMMi Level-5/ISO certification, etc.
In September 2024, BEL signed a memorandum with ISRO’s Space Application Center (SAC) for the co-development of the indigenous space-grade traveling wave tube amplifiers (TWTAS).
These are important components used in communications, navigation and microwave radar payloads that the kind of hardware is required for defence satellites.
BEL benefits in many ways as India gears up to deploy 52 defence satellites. These satellites are expected to expect to carry advanced payloads such as synthetic-aperture radar (SAR) sensors that work in a microwave band.
The company has already entered the space electronics segment and is well positioned to support on-board systems and ground devices.
Data Patterns
Last on the list is Data Patterns. Data Patterns has quietly become one of the key behind-the-scenes players in India’s space journey.
From building parts to exact ISRO standards at its approved facility, to designing specialised nano satellite buses for low-cost, quick-turnaround missions, the company is deeply embedded in the space tech ecosystem.
It also develops ground stations that help relay mission data and has been supporting ISRO for over two decades with automated test systems for launch vehicles like PSLV and GSLV.
Data Patterns has also contributed to automating launch pads at SDSC-SHAR, proving just how broad and critical its role is in powering India’s space ambitions.
Under the defence satellites program, there will be a massive need for advanced electronic systems—both on the satellite (payload) and on the ground.
This includes control systems, power management, communication modules, and ground-based test and launch support. These are areas where Data Patterns already has strong capabilities.
Conclusion
With India stepping up its space and defence ambitions, the outlook for companies involved in satellite-based military infrastructure looks promising.
The record-high defence allocation of Rs 6.81 trillion (tn) for FY26—set to cross Rs 7 tn after Operation Sindoor—signals not just short-term urgency but a broader strategic shift.
The long-term vision is even more ambitious. According to the CII-KPMG Defence Vision 2047, India’s defence budget could rise nearly fivefold by 2047, with a focus on space tech, production, and R&D.
As programmes like SBS-III move forward, demand for advanced satellite systems, launch vehicles, radar electronics, and secure communication infrastructure is set to rise.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
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