The recent announcement of a steep hike in H-1B visa fees has sparked intense debate across India’s IT sector. While the industry anticipates near-term cost pressures, experts believe the structural shift toward local hiring and offshore delivery will cushion the blow.

Clarifying the specifics of the new rules, Kunal Bajaj of Choice Institutional told ET Now, “The H-1B visa fee is a one-time charge applied at the time of a new petition. Employees who already hold an H-1B visa do not need to pay this fee again. Additionally, renewals, extensions, and amendments on H-1B reissuance are not affected. The bulk of Indian IT employees on H-1B visas are not impacted.”

Over the last five years, filings by top Indian IT companies have declined nearly 45% as firms increasingly rely on local hiring. Bajaj explained that this trend will only accelerate: “IT companies have already increased hiring of US-based local employees and are relying more on offshore delivery models.”

On the financial side, Bajaj noted that margins could see a short-term hit. “In the short term, there could be cost increases, margin pressure, and project negotiation challenges, which may impact profitability on on-site projects. We estimate the margin impact to be around 50–100 basis points. Companies may manage this by passing costs to clients or using subcontracting. EPS could decline by approximately 2–4%.”

The fee jump—from around $1,500 to $100,000 per petition—could escalate costs by over a billion dollars for the top 10 IT firms if visa demand remains steady. Yet, this shift may encourage global clients to establish more Global Capability Centers (GCCs) in India. Bajaj added, “With this move, demand for GCCs could rise, as companies focus on establishing GCCs to leverage lower-cost employees. Ongoing innovation in delivery models will soften the medium-term impact.”

Regarding which companies could be most affected, Bajaj said, “The larger firms like TCS and Infosys, due to their employee pyramid, are better positioned to handle this situation, while mid- and small-tier companies might face more pressure.” He also noted that valuations provide some comfort: “All of these companies are trading below their five-year mean valuations, so the situation is not as dire as expected.”Despite the immediate challenges, the consensus is that India’s IT sector is well-positioned to absorb the fee shock, with larger firms better equipped to adapt through diversified strategies and global delivery models.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Markets regulator Sebi is looking to review the margin framework under margin trading funding (MTF) in a bid to streamline risk management at clearing corporations.

In its annual report for 2024-25, Sebi said a “comprehensive review exercise is being undertaken with respect to the currently applicable margining framework.”

Alongside this, a review of MTF and the scrips eligible under it is also under consideration.

Margin trading lets investors buy shares even if they do not have the full amount. They can purchase shares by paying only part of the price, while the rest is covered through a margin deposited in cash or as shares kept as collateral.

In addition to the review of margin rules, Sebi is also considering changes to the regulatory framework for angel funds. The review will focus on fundraising processes, investment conditions, and operational aspects, with the objective of facilitating ease of doing business and streamlining regulatory requirements.

Angel funds play a pivotal role in channelizing the capital of angel investors to startups in need of funding. Sebi has further proposed to review the classification of REITs and InvITs as hybrid instruments. This move comes in response to representations from various stakeholders, the presence of equity-like features in these instruments, the development of the market ecosystem over the last decade, and global practices. A review of the regulatory framework for mutual funds is also on the cards, aimed at ensuring that the regulations remain effective, adaptable, and aligned with the evolving market landscape. As part of this, Sebi is examining the restrictions presently prescribed for asset management companies (AMCs), after receiving feedback from the mutual funds industry, including the AMFI.

In line with these efforts, Sebi intends to expand the range of permissible investment strategies under Specialised Investment Funds (SIFs).

At present, SIFs allow asset management companies to offer a limited set of strategies across equity, debt, and hybrid categories.

Introduced to bridge the gap between mutual funds and portfolio management services (PMS) in terms of portfolio flexibility, the SIF framework requires investors to commit at least Rs 10 lakh across all SIF strategies.

Listed jewellery firm Senco Gold Limited has doubled its profit after tax (PAT) in the Q1 of FY 26 to Rs 104.6 crore compared to the same quarter last year. The topline of the company grew by 30 per cent year-on-year to Rs 1826.2 crore.

The eastern India based retail jeweller has a network of over 186 showrooms across 17 states & UTs, including one showroom in Dubai, UAE and 7 Sennes showrooms.

Speaking on the performance, Suvankar Sen, Managing Director & CEO, Senco Gold said “The quarter was marked by continued geopolitical tensions, tariff war as well as huge rise in gold price by 32 per cent Y-o-Y and 5 per cent Q-o-Q, consumer demand remained elevated, enabling us to deliver robust topline growth and achieve our highest-ever Q1 retail performance. In Q1, 10 new showrooms were added to the network, comprising 5 COCO (including 1 Sennes store), 1 FOCO, and 4 FOFO formats. The strong momentum was significantly fuelled by a favourable festival like Akshay Tritiya driving our sales. In the retail segment, COCO showrooms, contributing 63% to the overall retail revenue, registered a 25% growth in Q1.”

“The FOFO business, which accounts for the remaining 37%, grew by a strong 34% during the same period. Our old gold exchange program ensures that the price rise impact was mitigated ensuring continued demand,” Sen said.

“We remain confident that, given our long-term strategy and strategic calibrations, we are well positioned to deliver 18%-20% revenue growth, 6.8%-7.2% EBITDA Margin and 3.7%-4.0% PAT margin,” Sen added.

Elaborating on the financial performance, Sanjay Banka (Group CFO & Head IR) commented, “The EBITDA margin improved substantially to 10% as against 9.2% in Q4 FY25 and 7.7% in Q1 FY25 YoY which was primarily driven by higher diamond jewellery sales, improved product mix as we are consistently improving our hyperlocal jewelleries outside East and improved realisation due to gold price rise. OPEX has been maintained under tight vigil leading to operating leverage which has resulted in the improved EBITDA margin.”

Dixon Technologies expects its operating margins to improve by 120-130 basis points in FY26 and go up even higher in FY27 after a full ramp-up of its new component business, with management expecting to more than compensate for the loss in PLI sops after the scheme ends next year.

Revenues from its mobile business in Q1FY26 grew 125% on-year to Rs 11,663, while operating profit grew 131% on-year to Rs 395 crore. Dixon’s mobile business contributed 91% to its topline of Rs 12,838 crore.

Dixon’s EBITDA margins dropped by 10 basis points on-year to 3.8% in the quarter ended June 2025. Net profit for the quarter doubled on-year to Rs 280 crore.

The contract manufacturer will start making camera modules, and display assemblies by the end of this fiscal, with precision mechanical components from the next fiscal, under the government’s Rs 22,000 crore electronics component manufacturing scheme, Dixon MD Atul Lall said in an earnings call Tuesday.

Dixon has projected Rs 750-800 crores in capital expenditure for its camera modules and display assembly business in FY26, with an additional Rs 300-400 crores in expanding capacities in its core EMS (electronics manufacturing services) business.

The company is acquiring a majority stake in the India operations of Kunshan Q-Tech Microelectronics, among the five largest camera module manufacturers globally for Rs 400 crore. It has also formed a joint-venture with HKC for display assembly, with a facility getting ready in the next 45 days, Lall said.However, the joint venture deals and acquisitions are currently pending approval under the government’s press note 3, which mandates ministerial approval for investments coming from neighbouring countries, especially China.Lall said the approval process is going well for these deals.

Dixon expects a 15% sequential growth in orders ahead of the festive season, and a boost in export volumes for its anchor customer, Motorola to the United States. The company is also negotiating a large export opportunity for another global brand, Lall said.

For the current year, exports are projected to reach Rs 7000 crore, from Rs 1600 crore last fiscal if the export deal works out, with Lall projecting Rs 11,000 crore in exports by FY27.

The company has also started exporting to Africa, where it sees a large opportunity having been able to meet the cost targets.

“The ASP (average selling price) for export is almost similar to domestic ASP but exports have some ramp up requirements wherein we have to invest more in the organisation. So while the margin levels are finally going to be similar, initially the costs are going to be more,” Lall said.

Dixon is also expanding its top management with more talent as it expands aggressively into newer categories.

The company appointed a vice president of strategy and digital transformation, and another top executive to head the component business. “We have hired an expert from Taiwan who heads our display manufacturing business, and a Korean expert who head our R&D for washing machines and appliances,” Lall said.

Eternal, which operates the food delivery platform Zomato, will announce its earnings on Monday, July 21. The company is expected to report a steep year-on-year decline in Q1 net profit, according to estimates from four brokerages. Losses from its quick commerce business are likely to weigh on the earnings, the estimates suggest.

Previews from Nuvama Institutional Equities, JM Financial, ICICI Securities, and Kotak Institutional Equities have been taken into account.

Here’s what they said on these 5 key metrics:

1) PAT Likely to Drop YoY

Brokerages expect Eternal’s Q1FY26 profit after tax (PAT) to decline significantly on a year-on-year basis, largely due to continued losses in Blinkit and elevated costs in the Going Out business.- Nuvama pegs PAT at Rs 74.3 crore, down 71% YoY, but up 90% QoQ.

– JM Financial estimates PAT at Rs 78 crore, down 69% YoY, up 101% QoQ.

– ICICI Securities projects a more conservative figure of Rs 28 crore, down 89% YoY and 29% QoQ.

– Kotak Institutional Equities expects PAT at Rs 31 crore, down 88% YoY and 21% QoQ.

2) Revenue: Strong Growth Driven by Blinkit and Hyperpure

Eternal is expected to post robust top-line growth, led by strong momentum in Blinkit, Hyperpure, and steady demand in food delivery.

“We expect Q1FY26 revenue growth at 59% YoY, driven by 18% YoY growth in food delivery revenue (18% YoY GMV growth), 75% YoY growth in Hyperpure revenue, and 113% YoY growth in Blinkit revenue (124% YoY GMV growth),” Kotak said in a note. “Rapid store additions (we model period-ending store count of 1,551) will drive Blinkit’s growth.”

– Nuvama forecasts revenue at Rs 6,596 crore, up 57% YoY, 13% QoQ.

– JM Financial pegs it slightly higher at Rs 6,617 crore, up 57% YoY, 13% QoQ.

– ICICI Securities is more bullish at Rs 7,081 crore, up 57% YoY, 14% QoQ.

– Kotak Equities expects Rs 6,682 crore, up 59% YoY, 15% QoQ, with Blinkit GMV up 124% YoY.

3) EBITDA: Sequential Improvement, YoY Pressure

While EBITDA is set to jump quarter-on-quarter due to operating leverage, higher losses in Blinkit and continued cost pressures in food delivery are expected to weigh on YoY performance.

“We expect an EBITDA loss of Rs 180 crore for Blinkit, flat QoQ. A 10-bps margin improvement is likely from reduced competitive intensity. However, YoY EBITDA will still decline due to increased losses in Blinkit and Going Out businesses,” said Kotak.

– Nuvama: Rs 165 crore, down 6.5% YoY, up 130% QoQ

– JM Financial: Rs 168 crore, down 5.2% YoY, up 133% QoQ

– ICICI Securities: Rs 201 crore, down 33% YoY, up 22% QoQ

– Kotak Equities: Rs 130 crore, down 26.5% YoY, up 81% QoQ

4) EBITDA Margins: Sequential Uptick, YoY Weakness

– Nuvama: 2.5%, down from 4.2% in Q1FY25, but up from 1.2% in Q4FY25

– ICICI Securities: 2.8%, down 378 bps YoY, up 17 bps QoQ

– Kotak Equities: 1.9%, down 227 bps YoY, up 71 bps QoQ

5) Key Monitorables

Investors should closely track Blinkit’s revenue contribution and margins, food delivery cost structure, GMV growth, margin recovery in Hyperpure, and management’s commentary on store expansion plans and profitability timelines.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The shares of Hindustan Unilever (HUL) plummeted by 4% to their day’s low of Rs 2,325 on the BSE today after the FMCG major released its financial results for the March quarter, which showed muted volume growth and margin pressure along with a weak margin outlook.

In the fourth quarter of FY25, HUL reported a volume growth of 2%, a figure that disappointed the Street. The company’s EBITDA margin stood at 23.1%, reflecting a decline of 30 basis points on a year-on-year basis.

HUL also guided that going forward, its EBITDA margin is expected to be in the range of 22–23%, compared to the earlier communicated band of 23–24%.

The company also reported that gross margin is expected to moderate going forward. Management stated that while price growth is likely to remain in the low single digits if commodity prices remain stable, volume-led and competitive growth remains a focus in the near to mid-term.

Meanwhile, HUL’s total sales for the quarter stood at Rs 15,000 crore, increasing from Rs 14,693 crore in the same quarter of the previous fiscal. EBITDA came in at Rs 3,466 crore, marginally higher than Rs 3,435 crore in Q4FY24.

Also read: HUL Q4 Results: PAT rises 4% YoY to Rs 2,493 crore, revenue up 2%Segment-wise, in Q4FY25, HUL’s Home Care segment reported revenue of Rs 5,818 crore, rising from Rs 5,715 crore in the same quarter last year. The Beauty & Wellbeing segment posted Rs 3,113 crore, up from Rs 2,987 crore, while the Personal Care segment registered a marginal increase to Rs 2,124 crore compared to Rs 2,063 crore in Q4FY24.The Foods segment saw a slight decline, generating Rs 3,886 crore, down from Rs 3,911 crore a year ago. Meanwhile, revenue from Others (including Exports and Consignment) grew significantly to Rs 263 crore from Rs 181 crore.

During the quarter, net other income nearly doubled to Rs 224 crore, compared to Rs 118 crore a year ago.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Yes Bank is expected to report double-digit growth in its March quarter earnings, with net profit rising by 35–44% on a year-on-year basis, according to estimates by a couple of brokerages. The topline could be in the range of Rs 608 crore to Rs 652 crore in Q4FY25. The lender’s Net Interest Income (NII) could show a modest single-digit uptick in the quarter under review amid margin pressure.

The estimates are from JM Financial and Anand Rathi Share and Stock Brokers.

Yes Bank will announce its earnings on Saturday, April 19, 2025, along with heavyweights HDFC Bank and ICICI Bank.

Here’s what they recommend:

JM Financial’s Estimates

JM Financial expects Yes Bank to report a PAT of Rs 6,081 crore, reflecting a strong 34.6% YoY growth. However, this may be marginally down sequentially at 0.7%, suggesting pressure on the bottom line despite yearly gains.

Yes Bank’s NII is projected at Rs 2,209 crore, showing a modest increase of 2.6% YoY, but slipping 0.6% on a QoQ basis. Meanwhile, Net Interest Margins or NIMs are expected to remain under pressure at 2.1%, lower than the 2.2% reported in Q4FY24, and flat compared to 2.1% in Q3FY25.The Pre-Provision Operating Profit (PPOP) is forecasted to be Rs 1,040 crore, which could be a 15.2% YoY growth, but a decline of 3.6% QoQ.In terms of business growth, loans are expected to grow by 8.2% YoY and 0.7% QoQ to reach Rs 2,465 crore. As for the deposits, a hike of 6.8% YoY and 2.6% QoQ could come amounting to Rs 2,845 crore.

The lender is expected to report softness in its credit costs for the quarter under review at 0.4% in comparison to 0.8% in Q4FY24 and flat against 0.4% in Q3FY25.

JM Financial maintains a ‘Sell’ rating on Yes Bank as concerns around margin compression, limited loan growth momentum, and valuation considerations remain.

Also Read: HDFC Bank Q4 results: PAT may jump up to 7% YoY, NII to likely rise by up to 9%

Anand Rathi’s Estimates

Anand Rathi projects a much stronger earnings momentum for Yes Bank, forecasting PAT growth of 44.3% YoY to Rs 652 crore. On a sequential basis, profits are seen rising by 6.5%.

The brokerage has pegged NII at Rs 2,265 crore, which could be a growth of 5.2% YoY and a rise of 1.9% QoQ.

Further, PPOP is expected at Rs 1,113 crore, with robust 23.3% YoY and 3.1% QoQ growth, suggesting healthy operating performance and better efficiency metrics.

Also Read: ICICI Bank Q4 preview: PAT may jump up to 15% YoY on robust loan growth; NII growth seen at 7-11%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)