DreamFolks Shares Fall After Domestic Lounge Services Stop

DreamFolks Services, a company known for providing airport lounge access and related travel services, witnessed a sharp decline in its share price after it announced the suspension of its domestic airport lounge operations. The company’s stock hit a lower circuit limit of 5 percent, closing at ₹131 per share, following the news.

The decision has come as a surprise to investors, traders, and customers who rely on DreamFolks for smooth airport experiences. The company made the announcement to the stock exchanges after market hours on Tuesday, emphasizing that domestic lounge access for clients has been discontinued with immediate effect.

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Domestic Lounge Services Discontinued

In an official filing to the stock exchanges, DreamFolks stated:
"The services of domestic airport lounges have been discontinued to our clients, effective today. The impact of the same is material."

The company clarified that while domestic lounge services have been stopped, all other domestic services and the global lounge operations will continue without any disruption. This means that international lounge access and other related services provided by the company will function as usual.

DreamFolks also reassured its clients and stakeholders that all contracts with existing clients remain active. The company is currently in discussions to introduce alternative solutions that continue to offer value to their customers, despite the halt of domestic lounge services.

"We reiterate that contracts with our clients remain active, and discussions on alternate customer value propositions are in progress," the company said in a statement.

Impact of Partnerships Ending

This development comes after Travel Food Services decided to end its partnership with DreamFolks. Travel Food Services had previously worked with DreamFolks as an aggregator, providing lounge access across several of its facilities to clients connected through banks and networks.

Earlier in August, Adani Digital, Semolina Kitchen, and Encalm Hospitality had announced their plans to discontinue certain services, which also impacted DreamFolks. In July, DreamFolks itself had discontinued specific programs for prominent clients, including Axis Bank Ltd. and ICICI Bank Ltd. These changes indicate a pattern of service adjustments and shifts in partnerships that have affected the company’s domestic offerings.

DreamFolks Q1 Financial Performance

Despite these operational changes, DreamFolks reported strong financial results for the first quarter. For the quarter ending June 2025, the company recorded net sales of ₹348.95 crore, marking an 8.77 percent increase from ₹320.80 crore in the same period last year.

The quarterly net profit also saw a significant jump, rising 20.24 percent year-on-year to ₹22.19 crore compared to ₹18.45 crore in June 2024. EBITDA for the quarter stood at ₹30.43 crore, up 17.22 percent from ₹25.96 crore in the previous year.

These results suggest that while domestic lounge services have been affected, the company’s other business lines, especially international services, continue to generate revenue and maintain profitability.

Stock Market Performance

DreamFolks Services’ stock has experienced a steep decline over the past year. The company’s shares have lost over 72 percent of investor wealth in the last 12 months. Over the last six months, the stock fell 38 percent, and in the last three months, it declined by 51 percent.

The stock reached its all-time high of ₹518.15 in September 2024 but touched a 52-week low of ₹122.25 in August 2025. Currently, the stock is trading approximately 75 percent below its record high.

This sharp fall highlights the volatility investors face and the impact of operational changes on market perception. The sudden closure of domestic lounge services has only added to the pressure on the company’s stock price.

Company Response and Future Plans

DreamFolks has emphasized that the company remains committed to providing high-quality services to its clients, even as domestic lounge operations are paused. By maintaining all active contracts and exploring alternative solutions, the company aims to retain customer trust and loyalty.

The management is reportedly in talks with various stakeholders to identify other ways to deliver value to clients who previously relied on domestic airport lounges. These alternative propositions may include partnerships with other service providers or the introduction of new programs that benefit clients in different ways.

Why This Matters to Travelers

For frequent flyers and corporate clients, access to airport lounges has been a significant benefit. DreamFolks had built a reputation for facilitating a comfortable and premium travel experience across many domestic airports in India. The sudden halt of these services may inconvenience travelers who had memberships or agreements through banks and networks.

However, the assurance that international lounges and other domestic services will continue ensures that the company is not completely halting its offerings. Travelers with global lounge access or other services under DreamFolks will still be able to enjoy their benefits without disruption.

DreamFolks Services’ decision to discontinue domestic lounge operations marks a major change for the company and its clients. While the stock market reacted sharply with a 5 percent lower circuit hit, the company’s overall business, including global lounges and other services, continues to function normally.

Financially, the company is still performing well in terms of revenue and profitability, suggesting that the decision, while impactful, may be a strategic move to restructure operations or focus on more profitable avenues.

Investors and clients will be closely watching the company’s next steps, including any new service offerings or partnerships, as DreamFolks navigates these changes. For now, domestic lounge users will need to adjust to the absence of these services, while the company works to offer alternative solutions that continue to provide value.

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