Persistent Systems shares down by more than 4% today, on H1-B visa hit

Persistent Systems’ share price is down today. At 12:10 p.m. IST, 22^nd September, 2025, its share price is down by 4.55% at Rs 5,255.50. Nifty 50 index is down by 0.19% at this time. Nifty IT index is down by 2.77% at this time. The share is underperforming the stocks of its industry peers too, today.

The decline in the company’s share price today is because of the increase in H1-B fees from $2000-$5000 to $100,000. This increase has been imposed by Trump administration. The increase came into effect from 21^st September.

Persistent Systems’ heavy dependence on the US market

Persistent Systems is heavily reliant on the US market. At the end of the most recent June 2025 quarter, the company had 3,029 employees in North America; 280 employees in Europe; 21,820 employees in India; 211 employees in rest of the world.

The increase in H1-B visa fees will only be applicable for new visa applications. It has been imposed for the next 12 months. If at the end of the 12-month period the US government does not announce extension of the higher visa fee, then it will expire.

Persistent Systems’ expansion plans will be hit in the near term

The increase in the visa fee will make it significantly more expensive for Persistent Systems to send new employees to serve its US clients. It will lose much of the comparative advantage that it gets from the lower cost of skilled labor in India. So its expansion plans may get adversely impacted, at least in the near term. That is why its share price is down sharply today.

The stock has gained more than 700% in the past 5 years

Year-to-date in 2025, the share of Persistent Systems is down by 18.11%. In this period, Nifty 50 has gained 6.46%. The stock has underperformed the benchmark Nifty 50 index by more than 24% in 2025. But in the last 5 years, Persistent Systems’ stock has gained 764%.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE