New $100,000 Visa Fee May Hurt Profits and Trigger Sector-Wide Slowdown
H-1B Visa Shock Hits Indian IT Sector
Tata Consultancy Services (TCS) will be the first Indian tech giant to face investors after former President Donald Trump announced a steep hike in H-1B visa fees. The visa is widely used by Indian IT firms to send engineers to the U.S.
Trump’s decision to raise the fee to $100,000 per employee has already hit the stock market. TCS shares dropped, and the NSE Nifty IT Index fell 7.3% since the announcement on September 19.
TCS Is a Heavy H-1B Visa User
TCS is the second-largest user of the H-1B visa among Indian IT companies. It sends thousands of engineers to client sites in the U.S. Even though the firm has slowly reduced this reliance, the sudden fee increase will still impact profits.
“The cost will likely wipe out the entire operating profit per visa-holder,” said analysts at Jefferies.
This has raised serious concerns among investors, especially as TCS is about to report quarterly earnings.
Sector-Wide Profit Impact Predicted
According to Jefferies, Indian IT firms could see their earnings drop between 4% and 13% due to the new fee. The biggest issue? Profit margins are already slim on H-1B employees, and the extra cost removes any buffer.
Crisil Intelligence, however, offers a more moderate outlook. They believe companies might pass the extra cost on to clients, reducing the damage to just 10–20 basis points in margins.
IT Stocks Under Pressure
The visa hike comes at a tough time for the Indian IT sector. Firms were already facing:
- Tighter tech budgets in the U.S.
- Reduced discretionary spending by clients
- Loss of market share to Global Capability Centres (GCCs)
The H-1B policy change now adds regulatory and cost pressure, worsening investor sentiment.
Global Business Watch: Japan’s Retail Giants in Focus
In global markets, other major players are also under scrutiny:
- Fast Retailing Co. may report its slowest profit growth since 2023 due to weak sales in China.
- Seven & i Holdings Co. is planning a major strategic shift:
- A ¥2 trillion ($13.6 billion) stock buyback
- Possible IPO of 7-Eleven
- Aiming for 15%+ return on equity by 2030, according to Bloomberg Intelligence
Trump’s sudden visa fee hike puts Indian tech firms in a difficult position. While some may offset the costs through pricing or local hiring, others will feel pressure on earnings. TCS will be the first to show how it’s managing the change — and the whole sector will be watching.
