The SSLV was carrying Earth Observation Satellite -02 and a co-passenger satellite AzaadiSAT.
Two satellites that were onboard the first flight of a new Indian Space Research Organisation (ISRO) rocket got placed in an unstable orbit and are no longer usable, the space agency said, citing that the overall mission objectives of today's launch were not met.
"Issue is reasonably identified. Failure of a logic to identify a sensor failure and go for a salvage action caused the deviation. A committee would analyse and recommend. With the implementation of the recommendations, ISRO will come back soon with SSLV-D2," the space agency said in a series of tweets.
The update on the status of the mission came hours after it experienced data loss in the final phase of the flight.
Earlier, while speaking to NDTV, ex-ISRO chief Dr Madhavan Nair had said that the preliminary findings should be available in "few hours", calling the mission a complex one.
"Thousands of pages of data will be pouring in. Several specialists will have to go through these data. Apparently, everything went well up to the third stage. There is some deviation in the path in the final phase of the launch and that could be one reason or otherwise there could be some anomaly during separation," he said.
Dr Madhavan Nair, who retired as ISRO chairman in 2009, also credited the space agency for coming out with a rocket in a short span. "This is a small rocket launcher conceived and implemented within a short possible time. The cost optimisation, the weight optimisation, and getting it into commercial market - all these aspects were considered within such a short time. This is a remarkable achievement. All the rockets have performed as desired also," he said.
The SSLV was carrying Earth Observation Satellite -02 and a co-passenger satellite AzaadiSAT -- developed by the student team of 'Space Kidz India', an aerospace organisation that aims to create basic understanding and knowledge of space in government school students .
The "AzaadiSAT" comprises 75 payloads built by 750 school students to mark the 75th Anniversary of Independence. The girl students who designed the satellite also witnessed the SSLV-D1 launch at the spaceport in Sriharikota.
"Three groups from our school have participated in this SSLV launch. I am very glad that we got this opportunity. We really worked hard on it and today we will witness the launch of the AzaadiSAT satellite," Shreya, a student from Telangana, was quoted as saying by news agency ANI.
The SSLV was 34m tall, about 10m less than the PSLV and it has a vehicle diameter of two metres as compared to 2.8 metres of PSLV.
This was the maiden launch of SSLV by the space agency after the successful mission launches through its trusted workhorse Polar Satellite Launch Vehicles (PSLV), Geosynchronous Launch Vehicle (GSLV).
With inputs from agencies