Mumbai, March 27 -- Amid excess capacity and rising competition, renewable energy firms in India are looking to diversify beyond their core businesses to capture a larger share of the value chain, improve margins through integration and enhance valuations, industry experts said.

India's solar module manufacturing capacity surged from 11.1 gigawatts in March 2022 to 109.5 gigawatts by September 2025, data from Icra shows. This surge has even prompted lenders to go cautious on lending to the sector, Mint reported on 19 March.

Pure play companies in businesses such as solar module manufacturing and renewable power production are looking to enter adjacencies to not only capture a larger share of the renewable energy value chain, but also to...