Mumbai, Dec. 15 -- Indian solar companies are earning very high profits right now, but these profits are expected to slow down in the coming years as more factories open and competition increases, according to a report by DAM Capital.

The report explained that domestic solar module and cell makers are currently enjoying super-normal margins. This is mainly because imports are restricted and India does not yet have enough domestic manufacturing capacity. Due to limited supply and strong demand, companies are able to earn higher returns at present.

It stated, "Domestic manufacturers are earning exceptionally high returns currently due to import restrictions and limited domestic capacity. However, rising competition and rapid expansion in ...