Skyroot's Vikram-1 Reaches Orbit, But Profitability Still a Distant Goal

India entered a new era in space exploration on July 18 when Hyderabad-based Skyroot Aerospace launched its Vikram-1 rocket into low-earth orbit. The mission, named 'Aagaman' (meaning 'arrival' in Hindi), marked the first orbital launch by a private Indian company. Previously, all orbital launches from India were conducted by the state-funded Indian Space Research Organisation (ISRO).

Since 2020, the Indian government has opened the space sector to private players by establishing the Indian National Space Promotion and Authorization Centre (IN-SPACe) and allowing private firms to build launch vehicles and use ISRO infrastructure. Skyroot's success places it among a select group of private companies worldwide that have developed orbital launch vehicles, including SpaceX, Rocket Lab, Firefly Aerospace, and several Chinese firms. Others, such as ABL Space Systems and Isar Aerospace, are still striving for their first successful orbital launch.

While achieving a successful first flight is a significant milestone — many rockets, including the Falcon 9, failed their maiden attempts — Skyroot now faces the challenge of turning this technical success into a sustainable business. The global small-satellite launch market is evolving, and the company must navigate domestic demand, market uncertainties, and competition.

Founded in 2018 by former ISRO engineers Pawan Kumar Chandana and Naga Bharath Daka, Skyroot achieved its first milestone in 2022 with the suborbital launch of Vikram-S. Vikram-1 is a four-stage rocket: the first three stages use solid fuel, the fourth uses liquid fuel. The company aims to produce one Vikram-1 rocket per month once manufacturing is streamlined.

Mission Aagaman was a developmental flight intended to validate critical parameters such as stage separation, propulsion, guidance and navigation, structural performance, avionics, fairing deployment, upper-stage separation, and orbital insertion. The most challenging part was achieving orbital insertion, requiring the rocket to accelerate to high speed while maintaining guidance and propulsion. The rocket carried some payloads, but the primary focus was testing the vehicle itself.

Vikram-1 has a payload capacity of 290 kg to a 500-km sun-synchronous orbit and 480 kg to a low-inclination orbit at a similar altitude. Skyroot plans two more developmental flights before the rocket is deemed market-ready. The company's roadmap includes Vikram-2, capable of carrying up to 1,000 kg to low-earth orbit, with a targeted first flight in 2027, and a fully reusable launch vehicle with both booster and upper stage engineered for recovery and reuse.

Building a business around rockets is a different challenge. The small-satellite launch market has become increasingly competitive. Forecasts in the half-decade until 2021 anticipated a boom in demand for launching satellites weighing 100-500 kg. While demand has grown, not all entrants have been profitable. Launch vehicle revenues have grown more slowly than satellite manufacturing, creating pressure for consolidation. Moreover, geopolitical realignments have concentrated demand among a few players, making it harder for newcomers to secure contracts.

Skyroot's successful orbital launch is a testament to its technical prowess, but the company must now prove its commercial viability. With a clear roadmap and continued support from the Indian government, Skyroot has the potential to become a key player in the global small-satellite launch market — but the road ahead remains steep.