The U.S. administration announced changes to the H-1B visa program, including a one-time $100,000 fee for new petitions. Since Indian IT companies are major users of H-1B visas, investors should understand potential effects on sector margins, earnings visibility and market sentiment. The White House clarified this fee applies only to new petitions, not renewals.

Key Policy Highlights

• $100,000 fee applicable from 21 Sep 2025 for new H-1B petitions.
• No impact on existing visa holders or regular renewals.
• Expected recalibration of prevailing wages; priority to higher-paid roles.
• National interest waivers possible for critical roles.

What this means for Indian IT companies

How this matters for equity investors

• Expect short-term volatility for stocks with high onsite staffing models.
• Firms with a higher offshore delivery mix may be relatively better positioned.
• Watch for cost pass-through clauses in client contracts and management commentary during earnings calls.
• Policy developments and India–U.S. diplomatic engagement will influence sentiment and risk premium.

Conclusion

The H-1B changes are a reminder of regulatory risk for sectors dependent on cross-border talent mobility. For equity investors, the focus should be on monitoring company disclosures, margin sensitivity to incremental costs, and management actions to mitigate exposure — rather than reacting hastily. This note is informational and does not provide investment advice.