What to expect from TCS, Infosys, HCL Tech, Wipro in Q2 after Trump hikes H1-B visa fee
Among India’s IT majors, Tata Consultancy Services (TCS) led the decline with a drop of 8.5%, eroding Rs 97,598 crore in market value.
- Sep 29, 2025,
- Updated Sep 29, 2025 4:54 PM IST
The market capitalisation of information technology (IT) stocks has taken a sharp hit after US President Donald Trump stunned the tech world by announcing up to a 50-fold increase in the cost of skilled worker permits, raising fees to $100,000. In the domestic market, the BSE IT index fell 7.34% to 33,327 on September 26, 2025, from 35,968 on September 19. By comparison, the benchmark BSE Sensex slipped 2.7% over the same period. Among India’s IT majors, Tata Consultancy Services (TCS) led the decline with a drop of 8.5%, eroding Rs 97,598 crore in market value. Infosys, Wipro, HCL Technologies, Tech Mahindra, and LTI Mindtree also saw their valuations shrink by Rs 38,095 crore, Rs 21,437 crore, Rs 19,592 crore, Rs 14,350 crore, and Rs 13,364 crore, respectively. Looking ahead to Q2FY26, brokerage ICICI Securities expects a largely uneventful quarter for tier-1 IT services companies, describing it as a “status quo quarter” with no major surprises, even as concerns over tariffs and the steep H-1B visa fee weigh on the sector. The brokerage anticipates revenue growth in the range of 0.5–1.5% quarter-on-quarter in constant currency terms, with HCL Technologies likely leading the pack. For TCS and Wipro, the quarter is expected to be uneventful, while Infosys may see a 20-basis-point contribution from inorganic streams in its estimated 1.2% sequential growth. Profitability is expected to remain largely stable, with EBIT margins for the covered companies largely unchanged quarter-on-quarter. Infosys, however, could benefit from completed wage hikes, Project Maximus, and rupee depreciation. As the Q2 results season unfolds, investors will be watching for management commentary on guidance, the impact of higher H-1B visa costs, updates on wage hikes, and the competitive pressures from growing Global Capability Centres. Among the other major losers, market capitalisation of other IT firms such as Persistent Systems, Coforge, Hexaware Technologies, and Mphasis also declined by more than Rs 5,000 crore during September 19-26.
The market capitalisation of information technology (IT) stocks has taken a sharp hit after US President Donald Trump stunned the tech world by announcing up to a 50-fold increase in the cost of skilled worker permits, raising fees to $100,000. In the domestic market, the BSE IT index fell 7.34% to 33,327 on September 26, 2025, from 35,968 on September 19. By comparison, the benchmark BSE Sensex slipped 2.7% over the same period. Among India’s IT majors, Tata Consultancy Services (TCS) led the decline with a drop of 8.5%, eroding Rs 97,598 crore in market value. Infosys, Wipro, HCL Technologies, Tech Mahindra, and LTI Mindtree also saw their valuations shrink by Rs 38,095 crore, Rs 21,437 crore, Rs 19,592 crore, Rs 14,350 crore, and Rs 13,364 crore, respectively. Looking ahead to Q2FY26, brokerage ICICI Securities expects a largely uneventful quarter for tier-1 IT services companies, describing it as a “status quo quarter” with no major surprises, even as concerns over tariffs and the steep H-1B visa fee weigh on the sector. The brokerage anticipates revenue growth in the range of 0.5–1.5% quarter-on-quarter in constant currency terms, with HCL Technologies likely leading the pack. For TCS and Wipro, the quarter is expected to be uneventful, while Infosys may see a 20-basis-point contribution from inorganic streams in its estimated 1.2% sequential growth. Profitability is expected to remain largely stable, with EBIT margins for the covered companies largely unchanged quarter-on-quarter. Infosys, however, could benefit from completed wage hikes, Project Maximus, and rupee depreciation. As the Q2 results season unfolds, investors will be watching for management commentary on guidance, the impact of higher H-1B visa costs, updates on wage hikes, and the competitive pressures from growing Global Capability Centres. Among the other major losers, market capitalisation of other IT firms such as Persistent Systems, Coforge, Hexaware Technologies, and Mphasis also declined by more than Rs 5,000 crore during September 19-26.