In Q1 2025-26, ISG delivered a revenue of $4.3 billion, up 36 per cent year-on-year
Lenovo’s Infrastructure Solutions Group (ISG) is establishing an AI Centre of Excellence (CoE) in India to serve global customers. This team works on consulting, roadmaps, and deployment, and with plans to scale to over 1,000 high-skilled employees by the end of FY26.
Sumir Bhatia, APAC President, Lenovo ISG, said: “Later in the year, we will have an AI innovation centre in Bengaluru. Customers and partners can come in, even do POCs, and put in different applications there. It won’t just be a centre with shiny hardware, but will also provide access to labs and collaboration with our technology partners. It will also cover our complete end-to-end device to infrastructure.”
In FY25, Lenovo’s India revenue reached $3.4 billion, a 67 per cent jump year-on-year, with an 18.9 per cent share of the PC market. It has seen considerable success in Made in India products, with 12 million manufactured and reaching products and materials worth ₹18,000 crore shipped out of the country in 2024.
Global model
According to the company, India reflects Lenovo’s global model — it has R&D for phones and servers, large-scale manufacturing, delivery centres, and end-to-end services operating. Currently, the country is one of the fastest-growing markets for the company, serving domestic customers while also acting as a capability hub for the world.
In September 2024, the company also inaugurated its Research & Development (R&D) lab dedicated to advancing its Infrastructure Solutions in Bengaluru. The lab currently has around 200 employees.
Currently, nearly 46 per cent of the $69 billion company’s global revenues come from outside PCs. This includes servers, phones, infrastructure, and services. As per Lenovo’s Q3 FY 2024-25 results, its R&D investment was up nearly 14 per cent year-on-year to $621 million, focusing on AI and hybrid infrastructure.
In Q1 2025-26, ISG delivered a revenue of $4.3 billion, up 36 per cent year-on-year. Growth came from the execution of a dual strategy serving both Cloud Service Providers (CSP) and Enterprise/SMB (E/SMB) segments across all geographies.
“About half of our revenue comes from the CSP, and the rest from E/SMB. A key area of growth over the last few years, and where our investment has gone, is AI. We invested early in the game — a billion dollars into bringing in new infrastructure. This has resulted in more than 80 AI platforms across our portfolio,” Bhatia noted.
In 2023, Lenovo announced an additional investment of $1 billion between FY23 and FY25 to accelerate AI deployment for businesses around the world – specifically AI devices, AI infrastructure, and AI solutions. In Q1 2025-26, its AI infrastructure business revenue more than doubled year-over-year.
GPU servers
Alongside, the production line at its Puducherry facility, operational since 2005, is now producing enterprise AI and GPU servers for AI workloads to meet the growing demands of local and international markets. These servers, equipped with Lenovo’s advanced 8-way GPU architecture, will address the booming AI infrastructure needs. The plant has the capacity to build 50,000 AI rack servers and 2,400 GPU servers annually.
“We are 200 days into the operation. About half of that was the time spent on setting up the plant. In the last 100 days, we have delivered significant customer orders. Anything that addresses 70 per cent to 80 per cent of the workloads, we intended that it should be manufactured in India,” Amit Luthra, MD – India, Lenovo ISG, said.
Published on August 26, 2025
