Dreamfolks Services Limited (DREAMFOLKS)
₹56.73 -1.75% last close, 23 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Dreamfolks Services' revenue was ₹53.0 Cr (-83.1% year on year, +0.0% on the previous quarter), and net profit ₹-13.0 Cr (against a profit a year earlier); the operating margin was -41.5%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹53.0 | -83.1% | +0.0% |
| Operating profit | ₹-22.0 | to loss | loss widened |
| Net profit | ₹-13.0 | to loss | loss widened |
| EPS (₹) | -2.46 | to loss | loss widened |
| Operating margin | -41.5% | — | — |
DREAMFOLKS delivery percentage
NSE end-of-day data for
On Fri, 23 Oct 2026, 63.59% of the DREAMFOLKS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 63.51%. That is close to its usual level. Turnover was only ₹32 lakh, so a handful of trades can move this figure.
Delivery in the last 5 sessions: 65.3% · 66.9% · 74.8% · 63.2% · 63.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Dreamfolks Services has launched 'DreamFolks Club Nagavalli Wilderness Estate', a members-only private luxury club spread across approximately 30 acres on the Odisha-Andhra Pradesh border. The property features a 25-acre golf course, 37 cottages (20 luxury, 17 eco), and an event hall for 50-75 guests. This marks a strategic shift toward direct asset-led experiential luxury following the loss of domestic airport lounge contracts that historically made up 93% of FY25 revenue. Total capital expenditure and financial return expectations were not disclosed.
- Property spread across approximately 30 acres on the Odisha-Andhra Pradesh border
- Includes a dedicated 25-acre golf course across the Nagavalli River
- Offers 37 total cottages, comprising 20 luxury and 17 eco cottages
- Features an event and meeting hall seating 50 to 75 guests
- Capital expenditure and investment outlay details were not disclosed
Dreamfolks Services Limited received a Demand cum Show Cause Notice from the CGST (Audit) Gurugram on October 9, 2026, for FY 2021-22. The notice proposes a tax demand of ₹78,86,667, a matching penalty of ₹78,86,667, plus applicable interest, totalling ₹1.58 crore. The dispute relates to Input Tax Credit (ITC) claimed on invoices from a supplier whose GST registration was cancelled with retrospective effect, although the supplier had deposited the tax. The total demand represents ~14% of Dreamfolks' TTM PAT (₹11.27 Cr) but less than 0.3% of its TTM revenue (₹661 Cr).
- Tax demand of ₹78,86,667 and equal penalty of ₹78,86,667, totalling ₹1,57,73,334 plus interest.
- Notice issued under Section 74(1) of CGST Act for Financial Year 2021-22.
- Issue stems from ITC claimed on invoices from a supplier with retrospectively cancelled GST registration.
- Company clarified that the supplier had deposited the applicable GST and an appropriate reply will be filed.
Dreamfolks Services Limited received a Show Cause Notice (SCN) dated September 30, 2026, from the GST Authority under Section 73(1) of the CGST Act. The notice alleges differences between Input Tax Credit (ITC) reported in Form GSTR-3B and GSTR-2A for FY 2022–23. The total demand amounts to ₹1.88 crore, comprising ₹1.71 crore in tax and ₹0.17 crore in penalty. The company stated it does not expect an immediate material impact and is preparing a response within the prescribed timeline.
- Received Show Cause Notice from Assistant Commissioner of Central Tax, Gachibowli Division on September 30, 2026
- Total demanded amount is ₹1,87,56,965, including tax of ₹1,70,51,787 and penalty of ₹17,05,178
- Pertains to ITC differences between GSTR-3B and GSTR-2A for FY 2022–23
- Notice issued under Section 73(1) of the CGST Act and IGST Act provisions
Dreamfolks Services Limited has disclosed the voting results and scrutinizer's report for its 18th Annual General Meeting held on September 28, 2026. All six resolutions were approved by shareholders with over 99.98% votes cast in favor. The approvals include adoption of FY26 financial statements, re-appointment of statutory auditors M/s S S Kothari Mehta & Co. LLP, and appointment/re-appointment of directors, including Independent Directors Sunil Kulkarni and Lloyd Mathias.
- All 6 resolutions passed with over 99.98% votes in favor
- Total voter turnout was 66.14% of the 5,32,69,862 outstanding voting shares
- Promoter group voted 3,50,07,232 shares (100% in favor across resolutions)
- Appointment of Mr. Lloyd Mathias and re-appointment of Mr. Sunil Kulkarni as Independent Directors approved
Dreamfolks Services Limited issued a corrigendum to its FY2025-26 Annual Report and AGM Notice ahead of the 18th Annual General Meeting scheduled for September 28, 2026. The corrections relate to inadvertently omitted Note 24.4 and Note 26.4 under 'Revenue from Operations' in the standalone and consolidated financial statements. The company explicitly stated that these additions are non-material, do not alter reported financial figures or voting rights, and had already been covered in the Board Report.
- AGM scheduled to be held on Monday, September 28, 2026 at 11:30 A.M. IST via VC/OAVM
- Incorporated previously omitted Note 24.4 (Standalone, page 238) and Note 26.4 (Consolidated, page 305) under Revenue from Operations
- Reported FY26 consolidated revenue from operations stands at INR 6,606 Mn with an adjusted EBITDA of INR 250 Mn
- Maintains 6,000+ global touchpoints and 1,000+ global airport lounges
DreamFolks Services Limited announced a partnership with health-and-wellness fintech Elixir to provide premium spa benefits for Elixir's upcoming credit card. This aligns with DreamFolks' strategy to diversify into non-lounge lifestyle benefits following the disruption of its legacy domestic lounge business in FY26. Elixir's existing platform offers 2% to 5% cashbacks and workout-linked rewards, but commercial terms, minimum volume guarantees, and contract values for this agreement were not disclosed. The business impact remains modest until card issuance scale is demonstrated.
- Partnered with Elixir at Global Fintech Fest to power premium spa experiences for its upcoming credit card
- Commercial deal value and expected card issuance volumes are not disclosed
- Elixir currently offers 2% back on online spends and 5% back on wellness spends with rewards doubling at 20 workouts
- DreamFolks global footprint spans 3,000+ touchpoints across 100+ countries
Dreamfolks Services Limited has issued its Annual Report for FY 2025-26 along with the Notice for its 18th Annual General Meeting scheduled for September 28, 2026. The Annual Report outlines a transitional year with consolidated revenue from operations at INR 6,606 Mn (down from INR 12,919 Mn in FY25) and adjusted EBITDA of INR 250 Mn following the disruption in the domestic lounge business. The company highlighted strategic pivots including the acquisitions of Ten11 Hospitality for railway lounge operations, Dubai-based easy to travel (ETT), and the rollout of DreamFolks Club 2.0.
- 18th AGM scheduled for Monday, September 28, 2026, at 11:30 AM IST via Video Conferencing.
- FY26 Consolidated Revenue from Operations reported at INR 6,606 Mn, with Adjusted EBITDA at INR 250 Mn.
- Network reach reported at 6,000+ global touchpoints and 1,000+ global airport lounges.
- Global lounge transactions grew by ~140% year-on-year amid international expansion.
- Strategic steps include acquisition of Ten11 Hospitality (November 2025) and ongoing integration of easy to travel (ETT).
Dreamfolks Services released its Q1 FY27 earnings call transcript highlighting continued revenue contraction to ₹39 crore (down sequentially from Q4 and sharply lower YoY following the domestic lounge business transition). Gross profit was negative at -₹0.9 crore due to upfront minimum guarantee payments for global expansion, while adjusted EBITDA stood at negative ₹16.4 crore. The company reported that non-airport lounge services contributed 33% of the top line, with global footprint expanding to over 1,100 lounges. Management reaffirmed an EBITDA breakeven target by H2 FY28 amidst headwinds from Middle East geopolitical disruption.
- Q1 FY27 revenue dropped to ₹39 crore with adjusted EBITDA at negative ₹16.4 crore
- Gross profit came in at negative ₹0.9 crore due to upfront minimum guarantee payments for global lounge expansion
- Non-airport lounge services contributed ~33% of total revenue during the quarter
- Global airport lounge network reached 1,100+ lounges with 70+ outlets added during the quarter
- Management maintains guidance of reaching EBITDA breakeven by H2 FY28
Dreamfolks Services Limited has released the audio recording of its Q1 FY27 earnings conference call held on August 13, 2026. This comes at a critical juncture as the company reported a significant revenue contraction in FY26 (Rs 660.5 Cr vs Rs 1,291.9 Cr in FY25) following the loss of major bank programs. The company is currently navigating a transition, having reported net losses in the two most recent quarters (Mar 2026: -Rs 13.0 Cr; Dec 2025: -Rs 6.8 Cr). Investors should focus on management's commentary regarding the pivot to global markets and non-lounge services.
- Earnings conference call for Q1 FY27 held on August 13, 2026, at 17:00 IST
- Company reported a TTM revenue of Rs 661 Cr, down significantly from FY25 levels
- Net loss of Rs 13.0 Cr recorded in the preceding quarter (March 2026)
- Promoter holding remains stable at 65.72% as of June 2026
- Stock has seen a 12-month price return of -54.9% reflecting business model challenges
Dreamfolks reported a sharp revenue decline to Rs 39.0 Cr in Q1 FY27, down from Rs 348.95 Cr in Q1 FY26, following the discontinuation of major domestic lounge programs. The company posted a net loss of Rs 13.8 Cr, primarily driven by upfront minimum guarantee commitments for global expansion and a negative gross profit of Rs 0.9 Cr. Despite the operational stress, the balance sheet remains liquid with Rs 193.3 Cr in cash, which is approximately 53% of its current market capitalization. Management is pivoting toward a 'Benefits Technology' model, with non-airport lounge services now contributing 33% of total revenue.
- Revenue plummeted to Rs 39.0 Cr in Q1 FY27 from Rs 348.95 Cr in the same quarter last year.
- Reported a Net Loss of Rs 13.8 Cr compared to a PAT of Rs 21.3 Cr in Q1 FY26.
- Non-airport lounge services now contribute 33% of the topline, up from 6.7% in FY25.
- Cash and cash equivalents stand at Rs 193.3 Cr, providing a significant buffer against a Rs 365 Cr market cap.
- Global lounge network expanded to 1,100+ touchpoints across 100+ countries.
Dreamfolks Services reported a severe downturn in Q1 FY27, with standalone revenue collapsing 89.3% YoY to ₹37.15 cr from ₹348.95 cr, following the loss of major bank contracts. The company posted a Loss Before Tax of ₹18.0 cr, a sharp reversal from the ₹29.4 cr profit in the year-ago period. Critically, the company disclosed an insolvency petition (IBC Section 9) filed by operational creditor Travel Food Services (TFS) for a default of ₹11.4 cr. To strengthen governance, the board appointed Lloyd Mathias as an Independent Director for a 3-year term.
- Revenue from operations fell to ₹37.15 cr in Q1 FY27, down from ₹348.95 cr in Q1 FY26.
- Reported a Loss Before Tax of ₹18.0 cr for the quarter ended June 30, 2026.
- Insolvency petition filed by Travel Food Services Limited for a claim of ₹11.4 cr (₹114 million).
- Employee benefit expenses stood at ₹10.88 cr, significantly high relative to the reduced revenue base.
- Appointment of Lloyd Mathias as Independent Director effective August 14, 2026, for a 3-year term.
Dreamfolks Services Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirmed that no Demat or Remat requests were received during the quarter ended June 30, 2026. Furthermore, there were no pending requests from previous quarters. This is a standard procedural disclosure with no impact on the company's financial performance or business operations.
- Zero Demat or Remat requests were received during the quarter ended June 30, 2026
- Zero pending requests remained from previous quarters as of June 30, 2026
- Compliance certificate issued by MUFG Intime India Private Limited (formerly Link Intime India Private Limited)
- Filing confirms adherence to SEBI (Depositories and Participants) Regulations, 2018
Dreamfolks shareholders have approved a material related party transaction (RPT) with ETT Solutions DMCC via a postal ballot concluded on July 3, 2026. The resolution passed with 87.61% of total votes in favor, facilitating the company's global expansion strategy following its 60% acquisition of Dubai-based 'Easy to Travel' in late 2025. This approval is critical as the company pivots its business model after the discontinuation of major domestic lounge programs which previously constituted 93% of FY25 revenue. Despite the overall approval, 12.68% of public non-institutional voters opposed the resolution.
- Resolution for Material Related Party Transaction passed with 87.61% majority.
- A total of 1,01,563 shareholders were eligible to vote as of the May 29, 2026 cut-off date.
- Public non-institutional shareholders showed a dissent rate of 12.68% on the resolution.
- The transaction involves ETT Solutions DMCC, linked to the company's strategic pivot toward the Middle East and Southeast Asia.
- Remote e-voting period spanned 30 days from June 4, 2026, to July 3, 2026.
Dreamfolks Services has approved providing a corporate guarantee of ₹2.50 crore to AU Small Finance Bank to secure an overdraft facility for Ten 11 Hospitality Private Limited. Additionally, the company is placing a ₹1 crore fixed deposit as collateral for an initial one-year period. While the guarantee creates a contingent liability, the amount is relatively small, representing approximately 0.77% of the company's net worth (₹323 Cr). Dreamfolks will charge a guarantee commission to Ten 11, which is described as a subsidiary in the filing's impact assessment.
- Corporate guarantee of ₹2.50 crore provided to AU Small Finance Bank.
- ₹1.00 crore Fixed Deposit placed as cash collateral, restricting immediate liquidity.
- Guarantee amount represents ~0.38% of TTM Revenue (₹661 Cr).
- Company to charge a guarantee commission to the borrower, benchmarked at year-end.
- Arrangement includes an auto-renewal provision for the duration of the loan tenure.
Dreamfolks Services Limited has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI's insider trading regulations. This closure is a standard procedure ahead of the declaration of the company's unaudited financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the results are officially released to the stock exchanges. During this period, designated persons and their immediate relatives are prohibited from trading in the company's equity shares.
- Trading window closure begins on Wednesday, July 01, 2026.
- Restriction applies to the unaudited financial results for the quarter ending June 30, 2026.
- The window will reopen 48 hours after the financial results are declared.
- PAN freezing for Designated Persons will be implemented via the NSDL portal as per SEBI guidelines.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 13.8% YoY to INR 1,291.88 Cr in FY25. Airport lounge services contributed 93% of total revenue (INR 1,201.4 Cr), while non-lounge services (railway lounges, spa, golf) contributed 6.7% (INR 86.5 Cr). However, H1 FY26 revenue declined 13% YoY to INR 554.5 Cr from INR 637.7 Cr due to the discontinuation of key customer programs.
Geographic Revenue Split
Domestic operations accounted for approximately 93% of revenue in FY25. The company is aggressively scaling its global footprint, now covering 114 countries across Asia, Middle East, and Europe, including a 60% stake acquisition in Dubai-based 'Easy to Travel' in December 2025.
Profitability Margins
FY25 PAT was INR 65.05 Cr with a 5.0% margin. H1 FY26 PAT stood at INR 33.2 Cr with a margin of 5.9%, compared to 8.0% in H1 FY25. Gross profit margin for Q2 FY26 was 14.2%.
EBITDA Margin
FY25 EBITDA margin was 7.5% (INR 97.3 Cr). Adjusted EBITDA margin for H1 FY26 improved to 8.3% (INR 46.1 Cr) from 8.0% (INR 51.1 Cr) in H1 FY25, reflecting a focus on margin preservation despite revenue declines.
Capital Expenditure
The company operates an asset-light model but is vertically integrating into railway lounges, securing direct ownership of 3 premium railway lounge infrastructures (1 operational, 2 commencing soon). Net worth increased 25.8% YoY to INR 333.1 Cr as of September 2025.
Credit Rating & Borrowing
CRISIL downgraded the rating to 'CRISIL BBB-/Stable/A3' from 'BBB+/A2' in July 2025. Borrowing costs are minimal as the company maintains a gearing of 0.00 and relies on internal accruals; interest coverage is expected at 80-100 times.
Operational Drivers
Raw Materials
Lounge access rights and service procurement fees (93% of revenue), Employee benefit expenses (3.3% of revenue).
Import Sources
Not applicable as a service aggregator; however, global lounge access is sourced across 114 countries including Southeast Asia and the Middle East.
Key Suppliers
Key lounge operators include TFS (Travel Food Services), Encalm Hospitality, Adani Digital, and Semolina Kitchens, though these are being phased out following the domestic business transition.
Capacity Expansion
Secured 3 premium railway lounges with direct operational control. Expanded global network to 1,500+ touchpoints across 114 countries.
Raw Material Costs
Employee benefit expenses stood at INR 42.57 Cr in FY25, representing 3.3% of total revenue. Service costs are managed through vendor credit and internal cash accruals.
Manufacturing Efficiency
Not applicable; operational efficiency is measured by employee costs being contained at 3.3% of revenue.
Strategic Growth
Expected Growth Rate
29.40%
Growth Strategy
Execution of a four-pillar strategy: Global Expansion (acquiring 60% of Easy to Travel), Client Diversification (moving beyond banks to enterprise clients), Premium Lifestyle Services (adding 20+ services like golf and spa), and Technological Transformation of the proprietary platform.
Products & Services
Airport lounge access, railway lounge access, travel dining, spa & wellness, baggage wrapping, golf access, and members-only recreational facilities.
Brand Portfolio
DreamFolks
New Products/Services
Railway lounges and 20+ premium lifestyle services which contributed 6.7% to FY25 revenue and are expected to grow as the company pivots from airport lounge reliance.
Market Expansion
Targeting Southeast Asia and Middle East markets; acquisition of Dubai-based 'Easy to Travel' to accelerate global lounge business.
Market Share & Ranking
India's largest travel and lifestyle experiences aggregator with a dominant position in the domestic lounge market prior to the 2025 transition.
Strategic Alliances
Partnerships with RedBeryl, Grey Wall, and VFS Global to offer luxury social clubs, golf, and travel assistance.
External Factors
Industry Trends
Industry-wide shift toward spend-based benefit models (higher spend required for lounge eligibility) and a move toward holistic lifestyle aggregation rather than just travel enabling.
Competitive Landscape
Competition from direct lounge operators (TFS, Encalm) and other aggregators; DreamFolks is responding by vertically integrating into railway lounges.
Competitive Moat
Durable advantages include 13+ years of experience, a network of 1,500+ touchpoints, and a proprietary technology platform that integrates banks, card networks, and lounge operators.
Macro Economic Sensitivity
Highly sensitive to airport traffic and urbanization trends; economic migration leads to increased transit demand.
Consumer Behavior
Increasing demand for premium transit and lifestyle services (spa, golf, dining) across multiple touchpoints.
Geopolitical Risks
Strategic outcomes are impacted by changing market or policy environments and geopolitical landscape complexities.
Regulatory & Governance
Industry Regulations
Compliance with technology and sensitive data regulations is crucial; adherence to a Code of Conduct for Directors and Senior Management to manage conflicts of interest.
Environmental Compliance
Not disclosed in INR; company follows Business Responsibility & Sustainability Reporting (BRSR) standards.
Risk Analysis
Key Uncertainties
The discontinuation of the domestic lounge business (93% of revenue) and the loss of ICICI/Axis programs create significant uncertainty regarding the timeline for revenue recovery.
Geographic Concentration Risk
Historically 93% domestic; currently transitioning to a more balanced global revenue mix through the Dubai acquisition.
Third Party Dependencies
High dependency on lounge operators for service delivery; being mitigated by direct ownership of railway lounges.
Technology Obsolescence Risk
Low risk due to continuous investment in the proprietary technological platform as a core strategic pillar.
Credit & Counterparty Risk
Exposure to banks and card networks for receivables; managed through disciplined capital efficiency and a strong balance sheet.
