Lenovo India Q2 result: Revenue grows 23% to $1.2 bn on rising digitisation

Integrated IT solutions provider Lenovo's India arm on Thursday reported a 23 per cent year-on-year increase in revenue at $1.2 billion in the September quarter, aided by strong demand fuelled by digitisation, premiumisation and improved consumer sentiment following GST rejig.

Lenovo is capitalising on India's growing role as a global hub for digital capability centres and enterprise transformation, leveraging its extensive install base and business foundation to win in hybrid AI, Lenovo India Vice President and Managing Director Shailendra Katyal said.

"Lenovo India recorded a strong quarter across all business groups, with Q2 FY25/26 revenue growing 23 per cent year-on-year to $1.2 billion. We have seen a good demand view in India for all our categories with higher digitisation trends, premiumisation and improved consumer sentiment on GST stimulus. Our robust performance was driven by the strong adoption of our end-to-end AI-powered technology solutions among both retail, MSME, and enterprise customers," Katyal shared with PTI.

At the broader group level, Lenovo Group reached an all-time high revenue of $20.5 billion, marking a 15 per cent year-on-year increase. However, the Group's net income (profit attributable to equity holders) fell 5 per cent year-over-year to $340 million.

The AI-related revenue mix increased by 13 percentage points year-on-year, accounting for 30 per cent of the Group's total revenue this quarter, according to a company statement.

The growth was driven by high-double-digit revenue growth in AI servers and triple-digit revenue growth in AI PCs, AI smartphones, and AI services.

"Capitalising on the AI democratisation trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both personal AI and enterprise AI.

"We will continue to leverage our unique global/local model to navigate uncertainties and capture the tremendous hybrid AI opportunities, and in doing so not only deliver sustainable long-term returns to our shareholders, but also make AI truly personalised for every individual and every enterprise," Lenovo Group CEO Yuanqing Yang said.

Lenovo's Intelligent Devices Group, the core engine of its personal AI strategy, recorded a revenue of $15.1 billion, up nearly 12 per cent year-on-year.

The PC business increased its global market share to 25.6 per cent, while AI PCs accounted for 33 per cent of all Lenovo PC shipments.

The Infrastructure Solutions Group, a key contributor to Lenovo's hybrid infrastructure, reported a 24 per cent revenue growth to $4.1 billion.

The Solutions and Services Group's revenue rose 18 per cent to $2.6 billion, buoyed by double-digit gains in support services.