HCLTech has dismissed the operational impact of the US Department of Labor’s recent PERM program suspension, citing reduced dependency due to local hiring. The company announced its Q2 FY27 results today, reporting a 21.2% rise in net profit on ₹35,620 crore in revenue. Investors may track how the suspension, which also affects peers like TCS and Infosys, might influence onsite employee retention in the coming quarters.
HCLTech has addressed concerns regarding its operations in the United States following the Department of Labor’s decision to suspend the company from the permanent labor certification program, known as PERM, on October 8, 2026. The suspension, which prevents the filing of new applications and halts the processing of existing ones, applies to several major technology firms including Infosys, Tata Consultancy Services, Wipro, Cognizant, Microsoft, Adobe, and Capgemini.
Despite the regulatory action, HCLTech management stated that the suspension will have minimal impact on its workforce operations. The firm explained that its reliance on the PERM process has decreased significantly over time. This shift is driven by a strategy to increase the recruitment of local engineering talent in the US, reducing the need for traditional immigration pathways for permanent residency. The company also confirmed that its reliance on H-1B visas has remained stable, supported by long-term investments in US-based human capital rather than a reliance on international transfers.
The company provided this reassurance alongside its Q2 FY27 financial results, which were announced on October 12, 2026. HCLTech reported a robust performance, with net profit rising by 21.2% compared to the same period last year. The company posted revenue from operations of ₹35,620 crore, marking an 11.5% increase. Following these results, the firm declared an interim dividend of ₹12 per share and maintained its revenue growth guidance of 2.5% to 4% in constant currency terms for the 2027 fiscal year.
While the company remains confident in its operational model, the PERM suspension introduces a layer of uncertainty for the IT services sector. A primary risk for employees nearing the end of their six-year H-1B visa limit is the potential difficulty in securing a green card, a process which typically relies on the PERM certification. If the suspension is extended or if regulatory scrutiny increases, firms may face challenges in retaining experienced onsite staff, potentially leading to higher costs for subcontracting or temporary staffing. Furthermore, the company continues to navigate a business environment where discretionary client spending remains cautious. Investors will likely monitor future regulatory updates and the firm's ability to manage its onsite workforce composition without relying on the suspended certification process.