Kyndryl to invest $2.25 billion in India over next three years

BENGALURU - IT services provider Kyndryl (NYSE:KD), a prominent player in the IT Services industry with annual revenue of $15.06 billion and a market capitalization of $6.93 billion, announced plans to invest $2.25 billion in India over the next three years, focusing on modernizing technology infrastructure and expanding its AI capabilities in the country. According to InvestingPro analysis, the company has maintained profitability over the last twelve months, demonstrating financial stability for such significant investments.

The investment will include establishing an AI Innovation Lab in Bengaluru, developing IT talent, and supporting digital training for approximately 200,000 citizens, according to a company press release. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with over 10 additional ProTips and detailed financial metrics available in their Pro Research Report.

Kyndryl’s new AI lab will house data scientists, consultants, and other professionals to help businesses implement AI solutions. The facility follows similar labs the company has established in the UK and Singapore.

"India has established itself as a global technology powerhouse, driven by a thriving startup ecosystem, world-class digital infrastructure and skilled workforce," said Lingraju Sawkar, President of Kyndryl India.

As part of its expansion, Kyndryl plans to open offices in Tier 2 and Tier 3 cities to access talent and strengthen regional innovation. The company will also partner with graduate schools and research centers to create a new early career program.

The IT services firm is deepening its engagement with the Indian government through a Memorandum of Understanding with the Ministry of Commerce & Industry on its Ease of Doing Business initiative, demonstrating applications of its AI platform Kyndryl Bridge.

Kyndryl currently serves numerous Indian organizations including Bangalore International Airport, Canara Bank, National Stock Exchange of India, and Dr. Reddy’s Laboratories.

"We’re committed to further developing our people, expanding our technical capabilities and strengthening community partnerships to support growth, innovation and opportunity," said Martin Schroeter, Chairman and CEO of Kyndryl.

The investment aligns with India’s digital public infrastructure goals, with focus areas including AI, cybersecurity, and hybrid IT modernization.

In other recent news, Kyndryl Holdings reported its first-quarter earnings for fiscal year 2026, with earnings per share aligning with analysts’ expectations at $0.37. However, the company reported revenue of $3.74 billion, falling short of the projected $3.83 billion, resulting in a revenue surprise of -2.35%. Additionally, Kyndryl has expanded its strategic alliance with HPE to enhance the adoption of AI private cloud solutions. This collaboration aims to support customers in implementing and scaling AI solutions using HPE Private Cloud AI, co-developed with NVIDIA. Kyndryl also announced a partnership with Nova Intelligence to accelerate AI-driven SAP digital transformation projects for enterprise customers. This initiative will combine Kyndryl’s expertise in SAP modernization with Nova Intelligence’s AI solutions to facilitate efficient migrations to SAP Cloud ERP. Furthermore, Kyndryl has joined the White House’s Pledge to America’s Youth to support AI education initiatives. These developments reflect Kyndryl’s ongoing efforts to expand its technological capabilities and educational commitments.

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