U.S. H-1B visa fee: Midcap IT firms see no material impact on financials

With low visa exposure, midcap firms IT services companies see no material impact from the increased visa fees starting 2026.

Companies including Cyient , Mphasis , Persistent Systems , and Coforge have stated that their reliance on H-1B visas is limited, with only a small number of fresh applications filed in recent years.

As a result, these firms expect no material effect on headcount, operations, or financials, though they will continue monitoring the situation.

Cyient claims that the new directive of increased processing fee will not have any material impact on the company, as this fiscal year, only 6 employees on H1-B visa were hired.

“We would like to inform that Cyient does not anticipate any material impact on its financials for FY26 and immediate term. For FY25, the number of Cyient employees deployed on H-1B was 6,” the company said in its filing to the group exchanges.

“Cyient’s philosophy has always been in building a truly global engineering and technology enterprise to support our diversified portfolio of businesses. We are local in our approach to build talent and global in our outlook, which defines our market leadership and our risk mitigation approach in today’s rapidly evolving world,” the company added.

Cyient, as of March quarter FY25, had 12,770 permanent employees.

Mphasis highlighted measures such as increased local hiring, acquisitions, partnerships, and a focus on AI-led deals to reduce dependency on overseas visas.

“In the calendar year 2025, we only had ~130 new filings, of which we have received 78 new approvals till date. Our focus on AI led deals has helped us build sufficient system resiliency. Over the years, we have been steadily reducing our reliance on visas through increased local hiring, acquisitions, and partnerships. We are fully staffed for all existing client requirements and will operate in a business-as-usual mode. We will continue to adjust and evolve and are focused on making sure that our AI led propositions solve any challenges that may arise,” the company added.

Mphasis had over 31,000 employees around the globe as of March 31, 2025, the company stated in its annual financial report.

These clarifications come amid the announcement of one-time fee of $100,000 by the U.S. administration for every new H-1B visa petition, effective September 21, 2025. The measure was introduced through an Executive Order on September 19, 2025, titled Restriction on Entry of Certain Non-Immigrant Workers, followed by a memorandum from the Department of Homeland Security and the U.S. Citizenship and Immigration Services on September 20. Initial uncertainty over whether the fee would also apply to existing H-1B holders has since been resolved, with authorities clarifying that it will only affect new applicants.

“Based on our current assessment, we hereby wish to inform that we do not expect any significant impact of the above Executive Order on our operations or financials.  We will continue to monitor the developments in this regard closely and will provide updates, as appropriate,” said Persistent Systems in an exchange filing on Sunday.

At the end of the last financial year, Persistent Systems had reported more than 24,500 permanent employees.

Following the various investor queries, Coforge informed that the United States market contributed to 53% of the company’s revenue in FY25.

“As of June 30, 2025, the company had 34,187 employees. In FY25, the Company filed only 65 new H-1B visa petitions, of which 63 were approved by USCIS,” the company said.

“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,” the company added.

As of FY25, Coforge had 33,497 employees.