Trump’s $100K H-1B Fee Puts TCS, Infosys, Wipro, HCL Tech At Risk: Analyst View

The Trump administration has delivered a fresh jolt to global tech talent mobility by imposing a $100,000 fee on all new H-1B visa applications, effective September 21. While renewals and existing visa holders are exempt, the move has rattled India’s IT sector — the largest beneficiary of H-1B allocations. 

SEBI-registered analysts explains the impact of this visa fee shocker for Indian IT firms

Who’s At Risk? 

This move directly impacts Indian IT majors with deep U.S. exposure such as TCS, Infosys, Wipro, HCL Tech, Tech Mahindra, LTIMindtree. These companies rely on H-1B hires to service large U.S. contracts. 

The sudden rise of $100K for each new H1B applicant threatens to erode profit margins, particularly for firms onboarding fresh talent into their U.S. delivery operations, Saurabh Sahu said. He added that though firms have been diversifying with local hiring and remote delivery, the U.S. still accounts for over half of revenues for most Tier-1 IT players. 

Infosys and Wipro ADRs dipped between 2% and 4% following the announcement as analysts warned of revenue growth moderation if companies choose to scale back on new H-1B filings. Smaller players in the sector may be hit harder due to thinner cash reserves and less flexibility in adjusting cost structures, according to Sahu.

Beyond The Numbers 

He believes that such a move could mean Indian IT firms may ramp up local U.S. hiring and explore nearshore delivery models to reduce the business risks. On the other hand, passing on the costs to the clients may prove challenging, given the already intense pricing pressure in the outsourcing market.

In the near term, Sahu expects margin volatility and valuation swings across Indian IT stocks. But beyond the immediate financial pressures, this policy marks a structural turning point. The $100,000 H-1B visa fee forces Indian IT companies to fundamentally rethink workforce strategies. Investors will have to brace for short-term volatility in the Indian IT sector. 

Nifty IT Outlook

Vinay Taparia reiterated that this policy move bodes negative news for the Nifty IT sector. The IT index had seen a formation of a double bottom breakout last week. He identified 35,500 as a crucial support going ahead.

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