H1B Visa: Here is what Coforge, Persistent, Mphasis has to say on the new visa rules

The Indian IT stocks will be in focus on Monday, as the new H1 B visa rules are expected to dent margins for the IT companies. The US President Donald Trump signed the executive order to raise the fees of H1 B Visa holders to $1,00,000 annually. The new executive order is expected to adversely impact all IT companies that have their professionals working in the US on H1 B visas.

As of 2024, India constituted nearly 70% of the total H1 B visa applicants, making them the primary adversary of the new rules. As per the PTI report, companies like TCS, Amazon, Microsoft, Meta, Apple, Google and others approved up to 5000 workers on the H1 B visas in 2025.

The increased cost per worker or employee is expected to put margin pressure on IT companies. The overall IT sector is already facing sectoral headwinds, like a demand slowdown from the US contracts, increased AI adoption leading to weak topline growth to the companies. Now in addition to the above, the new visa costs are expected to add more pressure to the margins of the company.

However, IT companies have stated they see no material impact of the new rules on its financials. Here is what companies have to say.

Mphasis: We do not foresee any significant impact on our financials or operations given our low H1B filing volume as well as the relative portion of our overall U.S. employees that are on H1B visas. In calendar year 2025, we only had ~130 new filings, of which we have received 78 new approvals to date.

Persistent: We have reviewed the recent U.S. Executive Order titled ‘RESTRICTION ON ENTRY OF CERTAIN NON-IMMIGRANT WORKERS’ related to H-1B visa applications dated September 19, 2025, and subsequent Memorandum dated September 20, 2025, issued by the U.S. Department of Homeland Security, the U.S. Citizenship and Immigration Services.

Coforge: In FY25, the Company filed only 65 new H-1B visa petitions, of which 63 were approved by USCIS. Over the years, the Company has consciously reduced reliance on new H-1B petitions for project staffing, which is reflected in the low number of fresh petitions filed in FY25. Hence, the company does not see any major material impact on its financials due to the changed regulations.

Firstsource Solutions: Firstsource has zero dependency on the H-1B program for its operations. The company’s talent strategy is founded on strong local hiring and a globally distributed execution model, ensuring resilience and continuity irrespective of immigration regulations

Cyient: Cyient does not anticipate any material impact on its financials for FY26 and the immediate term. For FY25, the number of Cyient employees deployed on H1B was 6.

In summary, the impact of the above new rules solely depends on the number of petitions filed and the company’s plans for upcoming petitions. However, large companies like Infosys, TCS, HCL Technologies and Tech Mahindra, which hold a significant workforce in the US, are yet to respond to the new order.