BEL, HAL, BDL, Mazagon Dock, Data Patterns! Defence Stocks In Focus; Has ISRO's PSLV-C62 Mission Failed?

Defence stocks entered into deep selling pressure on January 13, after the Indian Space Research Organisation (ISRO) announced an anomaly for its latest PSLV-C62 mission. ISRO has initiated an analysis to understand what went wrong with C62 mission, which was carrying 16 satellites to the space. A detailed report is expected to be released soon. However, what's worrisome is that it would be the fifth failure of PSLV launches. This is one of the reasons why major aerospace and defence players like BEL, HAL, BDL, Mazagaon Dock, Cochin Shipyard, Data Patterns and more declined on BSE and NSE.

Defence Stocks Nosedive:

At the time of writing, defence stocks like Bharat Electronics (BEL), Hindustan Aeronautics (HAL) and Bharat Dynamics (BDL) plunged by 1% to 2%. These three are the three largest defence players of India and are among top 25 defence companies in the world.

Meanwhile, Data Patterns, Cochin Shipyard, Kaynes Technology, Paras Defence & Space Technology, and MTAR Technologies plunged nearly 1% each. Additionally, Premier Explosives, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE), DCX Systems, Avantel nd Apollo Micro Systems share prices dropped by 1% to 2% each.

Has ISRO's PSLV-C62 mission?

As of now, the mission is not declared as failure. But ISRO updated that the PSLV-C62 mission encountered an anomaly during end of the PS3 stage. A detailed analysis has been initiated.

Further, in a post flight update, Isro Chairman V. Narayanan said that the mission has encountered a technical anomaly.

He revealed that PSLV-C62 rocket's initial flight stages were nominal but the third stafe (PS3) failed to offer the needed thrust due to an unexpected drop in chamber pressure. Moreover, Narayan said that they have observed a significant deviation from the intended flight path, and as a result, the satellites could not be placed in orbit.

This is the 64th flight of PSLV.

All About PSLV-C62 mission:

The PSLV-C62 flight's takeoff is the ninth dedicated commercial mission undertaken by NewSpace India Limited (NSIL) to build and launch the EOS-N1 earth observation satellite for a user along with providing launch services for 15 co-passenger satellites from domestic & international customers.

During the launch, the flight used the PSLV-DL variant with two solid strap-on motors.

The mission included demonstration of KID or Kestrel Initial Technology Demonstrator from a Spanish startup, which is a small-scale prototype of a re-entry vehicle being developed by the startup. The KID was scheduled to be the last co-passenger to be injected, after which it was slated to re-enter the earth's atmosphere towards splashdown in the South Pacific Ocean.

The mission was carried on January 12, 2026.

Why PSLV Flights Are Failing For ISRO?

What's concerning is that it would be sixth crisis from a PSLV flight. Up until 63rd flight, PSLV has already declared four failures. The PSLV-C62 mission faces setback exactly like the PSLV-C61 mission which was the 63rd flight of PSLV and the latest failure of ISRO.

PSLV-C61 flight took off from Satish Dawan Space Centre (SDSC SHAR) on May 18, 2025. During its first and second stages, this flight too performed normally, however, it failed during the third stage which later resulted in entire failure of the mission. After the investigation it was known that PSLV-C61 dropped in a chamber pressure during its PS3 stage. This satellite was meant to drive the country's space surveillance capabilities and contribute to smarter governance and faster disaster response.

The Polar Satellite Launch Vehicle (PSLV) is an expendable medium-lift launch vehicle designed and operated by ISRO.PSLV is the workhorse launch vehicle of ISRO that has completed 63 flights including notable missions like Chandrayaan-1, Mars Orbiter Mission, Aditya-L1 and Astrosat Mission. In 2017, PSLV set a world record by launching 104 satellites in a single mission.

It needs to be noted that India signed a contract with a consortium of HAL and Larsen & Toubro (L&T) to build the country's first indigenously produced Polar Satellite Launch Vehicle (PSLV) rocket. Under this contract, the duo has to deliver five PSLV-XL launch vehicles. The first rocket was delivered recently. Soon, India will launch its first fully-industry-built PSLV with the Oceansat satellite onboard.

As per Kotak Securities, this project stems from a 2022 agreement in which ISRO assigned the production of five PSLV XL rockets to the HAL led consortium. The thinking behind this plan is clear. ISRO wants to step away from routine PSLV manufacturing so it can focus on more advanced missions, research work and new launch vehicles. The PSLV has already proven itself over decades, making it suitable for a complete handover to industry.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.