Synopsis:
Dreamfolks Services plunged after one of its key client, Travel Food Services, issued a notice to terminate the extended arrangement for providing its access services for the lounges it operates.
The shares of this leading lounge access operator are in focus as it lost another key client, mounting pressure on the company’s financials. In this article, we will try to dive deeper into it.
With a market capitalization of Rs 746 crore, the shares of Dreamfolks Services Ltd made a day low of Rs 135.60 per share, down by 3 percent from its previous day closing price of Rs 139.75 per share. Post its debut in September 2022, the stock has corrected by over 67 percent.
About the announcement
Travel Food Services Limited (TFSL) announced that it is ending its lounge services agreement with Dreamfolks Services Limited, effective September 15, 2025. This agreement, which was initially signed on July 1, 2024 (and took effect from April 1, 2024), allowed eligible customers of Dreamfolks to enjoy access to lounges managed by TFSL. Unfortunately, despite both parties trying to renegotiate the terms in good faith, they couldn’t come to a new agreement, resulting in the termination.
TFSL has assured that this termination won’t affect its business operations. In fact, its wholly-owned subsidiary, Eliteassist Technology and Services Pvt. Ltd., has already started working directly with banks and networks. This strategic shift is designed to bolster TFSL’s standing in the fintech-driven lounge access market and improve the overall efficiency and customer experience across its services.
Lounge access gives travelers the chance to enjoy airport lounges equipped with top-notch amenities like delicious food, reliable Wi-Fi, and comfortable seating. Dreamfolks serves as a helpful aggregator, making it easy for bank and card customers to access lounges operated by TFSL without any hassle.
Earlier, on August 29, Dreamfolks announced that its suppliers, Adani Digital, Semolina Kitchens (starting September 15, 2025), and Encalm Hospitality (beginning November 1, 2025), are planning to stop offering certain services. While discussions are still in progress, everything is running smoothly for now.
However, the company has indicated that if these services are discontinued, it could have an effect on their operations and financial health. To address potential risks, Dreamfolks has taken the step of filing a petition against Encalm in the Delhi High Court and is also concentrating on expanding globally and diversifying its offerings.
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Financial Highlights
The company reported a revenue of Rs 1,292 crore in FY25, up by 14 percent from its FY24 revenue of Rs 1,135 crores. However, it reported a net profit decline of 6 percent to Rs 65 crore in FY25 from Rs 69 crores in FY24.
The stock delivered an ROE and ROCE of 24.35 percent and 33.76 percent respectively, and is currently trading at a P/E of 10.71x as compared to its industry average of 10.68x.
DreamFolks Services Ltd is an Indian airport services aggregator that provides a tech platform for banks, airlines, and travel companies to offer airport services to their travelers. DreamFolks connects global card networks and airport service providers,like lounge operators, transport, spa, food, and hotels, all onto a single platform. In addition to the traditional lounges, DreamFolks has nap rooms, curated meals, and other airport services at select airports of Bengaluru, Cochin, and Mumbai.
Written by Satyajeet Mukherjee
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