Lenovo India Q3 FY26 Revenue Rises 7% to Rs 8,145 Crore on AI and Infrastructure Demand

Strong Digitization Momentum Drives Growth Across Segments​

New Delhi, February 15: Lenovo India reports a 7 per cent increase in revenue to Rs 8,145 crore for the third quarter of FY26, supported by broad-based digitization momentum, rapid AI adoption, and solid performance across mobile, PC, and infrastructure businesses.


Shailendra Katyal, Vice President and Managing Director of Lenovo India, says the quarterly performance reflects sustained demand rather than a temporary spike. He highlights that the company’s diversified portfolio, spanning phones, PCs, tablets, and infrastructure solutions, positions it well to benefit from accelerating technology adoption, particularly in artificial intelligence.

Motorola Gains Market Share; PC and Infrastructure Post Double-Digit Growth​

A key growth driver during the quarter is Motorola, which captures an 8.3 per cent market share in India in Q3 2025, according to IDC data cited by the company.

Lenovo’s core PC business, along with its server and infrastructure division, delivers double-digit year-on-year growth in Q3 FY26, reinforcing demand across both consumer and enterprise segments.

India now contributes around 4 per cent of Lenovo’s global revenues and 24 per cent of its Asia Pacific revenue, underlining its strategic importance within the group.

India Emerges as Manufacturing and Capability Hub​

Lenovo, manufacturing in India since 2005, currently produces a large majority of products sold locally within the country, including Motorola phones, PCs, servers, and tablets. The company also exports phones and tablets from its Indian facilities.

Katyal states that India’s role extends beyond revenue contribution. The country is increasingly central to manufacturing, research and development, capability building, and AI talent development. Government initiatives such as the Production Linked Incentive scheme and AI skilling programmes have further strengthened the ecosystem.

Looking ahead, Lenovo is moving toward deeper component manufacturing. The company identifies manufacturing of motherboards and PCBs as the next logical step, aligned with its PLI commitments. As suppliers expand capacity under the component PLI scheme, Lenovo plans to increase local sourcing where commercially viable.

Hybrid AI Strategy and Expanding R&D Footprint​

On the AI front, Lenovo observes a shift in the Indian market from experimentation to demand for measurable returns on investment. The company is advancing its Hybrid AI strategy, spanning public cloud, private infrastructure, and personal devices such as AI PCs.


To support this strategy, Lenovo has significantly expanded its R&D presence in India. India-based engineers are involved in global server and smartphone programmes, and the company has filed over 600 patents in recent years. Headcount in India has grown five to six times over the past six years, particularly in engineering and AI roles. Lenovo currently employs about 3,400 people in India.

Lenovo Group Q3 Performance: Revenue at Record High​

At the group level, Lenovo reports an all-time high quarterly revenue of USD 22.2 billion, up 18 per cent year-on-year. However, net income attributable to equity holders declines 21 per cent to USD 546 million.

AI-related revenue grows 72 per cent year-on-year, contributing nearly one-third of total group revenue during the quarter.

The Intelligent Devices Group records revenue of USD 15.8 billion, marking a 14 per cent year-on-year increase. The Infrastructure Solutions Group posts a 31 per cent revenue growth to USD 5.2 billion, while the Solutions and Services Group reports an 18 per cent rise in revenue to USD 2.7 billion, driven by enterprises moving AI from experimentation to production under a tech-led, AI-first operating model.

Lenovo’s Q3 FY26 performance underscores India’s rising significance in its global strategy, supported by AI momentum, expanding infrastructure demand, and strengthening local manufacturing capabilities.