Archive · 9 Oct 2026
US Green Card Suspension Puts Indian IT Stocks in Focus
The US government has stopped some large technology companies from using a process that helps workers get permanent residency.
The government says the companies misused the system and that American workers were harmed.
Workers with temporary H-1B visas can still be employed, but the companies cannot process some green-card applications through this programme.
The decision could make it harder for Indian technology firms to retain some workers in the United States.
Analysts said this could raise costs and put pressure on growth and profits.
TCS said it hires many workers locally in the US and does not expect a major effect on its plans.
TCS also reported higher profit and revenue for the September quarter.
Investors were watching both the US decision and the company’s results.
The US suspended several major IT companies from the Permanent Labour Certification Programme, which helps employers seek green cards for workers including H-1B visa holders.
The administration alleged the firms used the H-1B system to undercut American wages; companies can still deploy temporary H-1B workers but cannot process pending or start new PERM applications.
Indian IT shares were expected to be in focus on October 9 amid the US move and TCS’s September-quarter results.
TCS reported September-quarter net profit of ₹13,884 crore, revenue of ₹73,188 crore and quarterly contract value of $9.6 billion, and declared a ₹12-per-share dividend.
TCS said its US workforce strategy relies on local hiring, that its PERM applications had been in single digits over the previous two years, and that it expected no material impact.
- Who
- The US government and major IT companies, including TCS, Infosys, Wipro and HCL.
- What
- The US suspended the companies from the Permanent Labour Certification Programme; investors also assessed TCS’s September-quarter results.
- When
- The developments were reported on October 9, 2026, following the US announcement on Thursday evening.
- Where
- The United States and Indian stock market.
- Why
- The US administration alleged that companies had used the H-1B system to undercut American wages; analysts said the suspension could affect talent retention, costs and investor sentiment.
US administration
IT companies and industry concerns
Use of the H-1B system
US administration
The administration alleged that IT companies abused the H-1B visa infrastructure to undercut American wages and disadvantage American workers.
IT companies and industry concerns
TCS said its US workforce strategy is anchored in hiring local talent, with a campus recruitment model and a significant workforce across 31 US offices and delivery centres.
Likely business impact
US administration
The administration presented the suspension as a response to alleged fraud and harm to American workers.
IT companies and industry concerns
Analysts warned that restricted green-card sponsorship could make talent retention harder and increase costs, potentially weighing on growth and margins. TCS said it expected no material impact on its strategy or client engagements.
- Programme
- Permanent Labour Certification Programme (PERM), a step employers use to seek employment-based green cards for workers.
- US administration's allegation
- It alleged that IT companies abused H-1B infrastructure to undercut American wages.
- TCS net profit
- ₹13,884 crore in the September 2026 quarter, up 14.45% year on year.
- TCS revenue
- ₹73,188 crore in the September 2026 quarter, up 11.20% year on year in rupee terms.
- TCS quarterly contract value
- $9.6 billion.
- TCS dividend
- ₹12 per share.
- TCS statement on PERM
- It said its PERM applications were in single digits over the previous two years and that it did not expect a material impact on its US workforce strategy or client engagements.
