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Eutelsat Pursues ISRO for Satellite Launches to Cut Costs, Boost Options

AEROSPACE-DEFENSE
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AuthorKavya Nair|Published at:
Eutelsat Pursues ISRO for Satellite Launches to Cut Costs, Boost Options
Overview

Eutelsat Communications is in strategic discussions with India's space agency (ISRO) to secure launch services, marking a significant effort to diversify beyond established providers like SpaceX and Arianespace. This move is driven by the need for cost-efficient launch capacity as Eutelsat expands its satellite fleet and faces escalating competition in the global broadband market from major players like Starlink and Amazon's Project Kuiper. The talks align with India's push to commercialize its space sector and position ISRO's LVM3 rocket as a competitive global offering.

Eutelsat Seeks New Launch Partner

Eutelsat Communications is negotiating with India's space agency, ISRO, for satellite launch services. This strategic shift aims to diversify Eutelsat's launch options as it expands its satellite fleet. The company wants to reduce its reliance on a few providers and use emerging, more affordable launch solutions.

Boosting Launch Capacity with ISRO

Eutelsat is exploring ISRO as a launch partner due to the growing need for affordable launch services. After merging with OneWeb in 2023, Eutelsat became heavily reliant on SpaceX's Falcon 9 and European Ariane rockets after Russian Soyuz launches were impacted by geopolitical events. ISRO's LVM3 rocket, a powerful vehicle that has launched important payloads including for OneWeb, is seen as a cheaper option in the global market. Industry estimates suggest LVM3 launches cost around $55 million to $60 million, significantly less than competitors. This move also supports growing space cooperation between France and India.

Global Competition Heats Up

Eutelsat's OneWeb constellation has about 648 satellites in low Earth orbit (LEO), making it the second largest after SpaceX's Starlink, which has nearly 7,000 satellites. Amazon's Project Kuiper is also building its planned 3,200-satellite constellation and has booked over 80 launches. Starlink mainly serves consumers, while Eutelsat OneWeb targets enterprise and government clients. The global launch market is expected to grow significantly, valued at an estimated $27 billion in 2025 and projected to increase further by 2035. SpaceX leads the market, handling over 60% of global launches. ISRO becoming a launch option for Eutelsat could change the market by providing a non-US, non-European alternative for essential launch capacity.

Financial Hurdles Persist

Even with these strategic moves, Eutelsat faces financial challenges. Its negative Price-to-Earnings (P/E) ratio of -2.72 as of March 2026 indicates ongoing losses. The company has a market capitalization of €2.5 billion, with its stock trading between €1.59 and €3.69 over the past 52 weeks. Eutelsat's stock has dropped over 51% in the last year. It has conducted significant capital raises, including a €1.5 billion increase, to strengthen its finances and fund investments. Analyst opinions are mixed, with a neutral consensus but varied price targets, some recommending 'Sell'. The company also faces tough competition from Starlink's large scale and Amazon's Project Kuiper. Past dividend suspensions and ongoing financial restructuring show Eutelsat needs to prove profitable growth from its combined satellite operations.

Funding and Growth Prospects

Eutelsat stated it has secured all necessary financing through 2031 and completed major refinancing deals. This shows commitment to its strategy, including planned investments of about €4 billion between 2026 and 2029. The company expects to have over 1,000 satellites in orbit soon. Growing demand for LEO satellite services, especially for connectivity in remote areas, supports this expansion. Eutelsat's LEO business revenue rose nearly 60% in the first half of fiscal 2025-26, highlighting its strategic direction. With varied launch options, Eutelsat could secure a strong position in the changing satellite market. India's goal to grow its space economy to $44 billion by 2033 further supports ISRO's commercial launch plans.

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