Lenovo India Posts 7% Revenue Growth
Lenovo India reported a 7% year-over-year revenue increase in its third quarter, reaching ₹8,145 crore ($980M). The growth signals robust enterprise IT hardware spending in the country, a key market for global technology companies.
- The overall India IT Hardware market is projected to reach $22.61 billion in 2026, growing at a 6.78% compound annual growth rate to reach $31.39 billion by 2031. Enterprise demand for AI-optimized arrays and servers is a primary driver, with this application segment expected to expand at a 7.65% CAGR through 2031. - Lenovo's growth is part of a larger strategy to double its India business in the next three years, announced by Amar Babu, President for Asia Pacific at Lenovo. The plan hinges on the expansion of AI-optimized infrastructure and digital services, moving beyond PCs. - A key contributor to the company's performance was its Infrastructure Solutions Group (ISG), which focuses on enterprise hardware. This division reported a 31% global revenue growth to $5.2 billion, with the server and infrastructure business in India also delivering double-digit year-on-year growth. - Globally, AI-related revenue grew 72% year-over-year, accounting for nearly one-third of Lenovo Group's total revenue for the quarter. This was fueled by high double-digit growth in AI server sales. - Underscoring its commitment to the region, Lenovo is utilizing the government's Production Linked Incentive (PLI) scheme to manufacture AI servers at its Puducherry facility. The company has the capacity to produce 50,000 enterprise servers annually in India to support cloud and data center workloads. - In the broader Indian IT hardware market, Lenovo holds the second position in PCs with a 17.2% market share, trailing HP Inc. which has 30.1%. In the enterprise server and networking space, its key competitors include HPE, Dell, and Cisco. - India now serves as a global R&D and capability hub for the company, contributing to the design of mainstream servers and a significant portion of Motorola's global smartphone software. Lenovo's R&D presence in India has filed over 600 patents in recent years. - The growth reflects a wider trend, with overall IT spending in India projected to grow 10.6% to exceed $176 billion in 2026. Spending on data center systems is forecast to be the fastest-growing segment, increasing by 20.5% as enterprises invest in AI-ready infrastructure.
