Lenovo India Q3 revenue grows 7% to ₹8,145 cr on AI, infra demand

Lenovo India has reported a 7 per cent rise in revenue to ₹8,145 crore for the third quarter of FY26, driven by a broad-based digitisation momentum in India, rapid AI adoption, and strong performance across the mobile, PC, and infrastructure business segments.

Shailendra Katyal, Vice President and Managing Director of Lenovo India, stated that the performance reflected sustained demand rather than a one-off spike.

"We are very encouraged by the broader digitisation momentum in India. Lenovo benefits from having a broad portfolio spanning phones, PCs, tablets, and infrastructure solutions. With rapid technology adoption, especially AI, we are seeing strong momentum across businesses," Katyal said in an interview with PTI.

A significant contributor to this growth was Motorola, which captured an 8.3 per cent market share in India in Q3 2025, according to IDC.

Additionally, Lenovo's core PC business and its server and infrastructure division delivered double-digit year-on-year growth during the quarter.

India has emerged as a critical hub for the global tech giant, contributing approximately 4 per cent of Lenovo's global revenues and 24 per cent of its total revenue in the Asia Pacific region, Katyal noted.

"Our role (in India) goes beyond revenue. India is increasingly central to manufacturing, R&D, capability building, and AI talent development. Government initiatives like the Production Linked Incentive (PLI) scheme and AI skilling programmes have further strengthened the ecosystem. So, India is both a revenue market and a capability hub within Lenovo's global strategy," Katyal said.

Lenovo, which has been manufacturing in India since 2005, currently produces a "big majority" of its products sold locally, including Motorola phones, PCs, servers, and tablets, within the country. The company is also exporting phones and tablets from its Indian facilities.

Looking ahead, Katyal said, the company is moving toward deeper component manufacturing.

"(Manufacturing motherboards and PCBs) is the logical next step and aligned with our PLI commitments. As suppliers build local capacity under the component PLI scheme, we will increase local sourcing wherever commercially viable," he said.

On the AI front, Katyal observed a shift in the Indian market from experimentation to a demand for tangible ROI. Lenovo is pushing a "Hybrid AI" strategy that spans public clouds, private infrastructure, and personal devices (AI PCs).

To support this, Lenovo has significantly scaled its R&D presence in India. The company's India-based engineers work on global server and smartphone programmes, and the firm has filed over 600 patents in recent years. Lenovo's headcount in India has grown five to six times over the past six years, specifically in engineering and AI roles, Katyal said.

The company currently employs about 3,400 people in India.

At the broader group level, Lenovo Group reached an all-time high revenue of USD 22.2 billion, up 18 per cent year-on-year. However, the Group's net income (profit attributable to equity holders) declined 21 per cent to USD 546 million.

The AI-related revenue grew 72 per cent year-on-year, accounting for nearly a third of the Group's total revenue this quarter, according to a company statement.

Lenovo's Intelligent Devices Group (IDG), the core engine of its personal AI strategy, recorded a revenue of USD 15.8 billion, up 14 per cent year-on-year.

The Infrastructure Solutions Group (ISG), a key contributor to Lenovo's hybrid infrastructure, reported a 31 per cent revenue growth to USD 5.2 billion.

Solutions and Services Group's (SSG) revenue rose 18 per cent to USD 2.7 billion, driven by enterprises moving AI from experimentation to production, and supported by Lenovo's tech-led, labour-light, AI-first model.