IT sector companies have been under pressure, following the White House’s announcement of a revised H-1B visa fee of $100,000. However, it also clarified that the fee would apply only to new applications and not as a recurring annual charge.
Market analysts believe that a hike in visa fees from the current $1,500 could impact the operations and financial performance of Indian IT firms, though the direct effect is expected to be limited. However, secondary factors like uncertainty around near-term deal wins may weigh on IT stocks.
“Several Indian IT majors derive a significant share of their revenues from the US market. The Trump administration’s recent overhaul of the H-1B visa regime, imposing a steep one-time fee of $100,000 per application compared to the earlier annual $1,000 fee, has sparked concern across the sector. Given that Indian nationals accounted for nearly 71% of approved H-1B visas in 2024, the policy shift appears, at first glance, to impose a substantial financial burden on Indian IT firms deploying talent onsite in the US,” said Sugandha Sachdeva- Founder-SS WealthStreet.
Sachdeva further explained that For the top 10 Indian and India-centric IT service providers, H-1B visa holders represent less than 1% of their global employee base and companies have already begun recalibrating their operating models, reducing reliance on H-1B visas, expanding local hiring in the US, and diverting more work to offshore delivery centers in India.
How H-1B visa fee hike will impact IT sector earnings in FY26?
According to Anuj Gupta, Director, Ya Wealth Research & Advisory, the immediate impact will be minimal since this fee applies only to new visa applications. However, its effect will be felt in the long run, likely becoming more noticeable a year after the fee is implemented.
“After implementation of the new $100,000 annual fee on H-1B worker visas in the United States new IT aspirants will not shift into the USA due to this fee which is approx 8800000 in Indian rupee. Now companies will rethink setting up their offices from the USA to Europe or other countries. This extra burden will impact the company’s balance sheet although the Indian IT Talent will also be very challenging to shift to the USA market. So now the cost of the companies may increase due to this new Trump’s policy for new visas and shifting of their offices,” Gupta said.
Meanwhile, Sugandha Sachdeva of SS WealthStreet said that in the medium term, while the visa overhaul underscores the Trump administration’s protectionist stance, Indian IT giants are well-positioned to absorb the shock through greater localization, agile resourcing, and operational efficiency, ensuring that earnings remain broadly insulated from regulatory headwinds.
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