Persistent Systems says no material impact from Trump's visa order; stock in focus

Indian IT stocks will react on Monday, September 22, to US President Donald Trump's executive order over the weekend restricting the entry of certain non-immigrant workers. Shares of Persistent Systems will also be in focus.

Persistent Systems, which derives a significant portion of its revenue from the US, said it does not expect any material impact from the order.

"We will continue to monitor the developments closely and will provide updates as appropriate," the company said in a regulatory filing.

For the June quarter, Persistent Systems reported results that were in-line with analyst expectations across parameters. The company's revenue in US Dollar terms for the quarter stood at $389.7 million. Revenue in rupee terms increased by 2.8% from the March quarter to ₹3,333.5 crore.

Earnings Before Interest and Tax stood at ₹517.7 crore, a growth of 2.5% from the previous quarter, and EBIT margins for the period narrowed by 10 basis points from March to 15.5% from 15.6%.

Persistent's Constant Currency Revenue growth for the quarter stood at 3.3%.

The broader IT sector, however, faces pressure. The Trump administration has announced a sharp hike in H-1B visa fees, imposing a $100,000 annual charge, a steep jump from the current cost of $1,700-4,500.

The move, which has triggered multiple clarifications from the White House on exemptions and applicability, is expected to make the visas economically unviable for many firms dependent on Indian tech talent.

US-listed shares of Infosys and Wipro fell up to 4% on Friday following the announcement. Indian IT majors are now bracing for a significant hit to margins and hiring flexibility.

Out of the 43 analysts that have coverage on Persistent Systems, 21 of them have a 'Buy' rating, eight say 'Hold', while 14 have a 'Sell' rating.

Shares of Persistent Systems ended 1% lower on Friday at ₹5,512. The stock is down nearly 15% so far in 2025.