Mphasis, Hexaware, Persistent Crack Despite Brushing Off H-1B Fee Hike

The Trump administration imposed a hefty $100,000 charge on all new H-1B visa applications, which came into effect on September 21. Though renewals and current visa holders remain unaffected, the decision has affected the IT industry, which relies heavily on these visas.

The Nifty IT index plummeted 3.15% on Monday, with nine of the 10 constituents trading in the red. Only Oracle Financial Services (+0.47%) advanced.

Mphasis, LTIMindtree, Coforge, Tech Mahindra, Infosys, and Tata Consultancy Services fell by over 3% each, while Wipro and HCL Technologies slid 2%.

Hexaware tanked 8.5% while Persistent Systems declined 4.5%.

Company Reactions

While the fee is likely to impact IT giants like Infosys and TCS, a few midcap companies have responded to the hike, stating that it would not affect their operations.

Mphasis declared that it has a low number of H-1B filings (about 130 new petitions so far in 2025, with 78 approved) and that its U.S. employee base on H-1B visas is small. It also emphasized its focus on local hiring, partnerships, and AI-led solutions.

Hexaware Technologies stated that it expects the regulatory change to be “immaterial,” noting that it hasn’t filed under the H-1B cap this April and has been reducing its dependence on such visas.

Persistent Systems stated it does not anticipate any significant financial or operational effects from the new U.S. executive order and memo.

Inventurus Knowledge Solutions (IKS) confirmed that the $100,000 fee hike will not affect its business or financial projections, as H-1B visa holders are not central to its delivery model. It maintains its focus on India-based teams, localization, and global delivery via its own technology framework. Stock was down 3%.

Analysts View

SEBI-registered analyst Mayank Singh Chandel stated that the proposed fee could significantly increase costs and also reduce opportunities for Indian tech workers, noting that Infosys, TCS, and Wipro may face pressure.

Chandel added that while the fee may seem like a significant blow today, in the long run, it could encourage Indian IT firms to rely less on visas and strengthen their teams back home.

According to Equity Insights Elite, the fee may also trigger a “brain gain” for India as skilled professionals return, while U.S. startups without deep pockets could struggle. They added that students may increasingly look to Canada, the UK, or Australia instead of the U.S. 

SEBI RA Saurabh Sahu noted that the sudden $100,000 fee for each new H-1B applicant could significantly squeeze profit margins for IT companies as the U.S. continues to contribute more than half of revenues for most Tier-1 IT companies.

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