Dreamfolks Services share price hit its 5 percent lower circuit to ₹131 after the company shut its domestic airport lounge business.
The company informed the stock exchanges after market hours on Tuesday that domestic airport lounge access for its clients has been discontinued with immediate effect, noting that the impact of this development is material.
“The services of domestic airport lounges have been discontinued to our clients, effective today,” the company said in an exchange filing on Tuesdsay. “The impact of the same is material. The other domestic services and global lounge business will continue as usual.”
It clarified, however, that all other domestic services as well as its global lounge operations will continue without disruption. The company further reiterated that client contracts remain active and that discussions are underway to introduce alternative customer value propositions.
“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.
This update comes shortly after Travel Food Services ended its partnership with DreamFolks, which had been serving as an aggregator for banks and networks to provide lounge access across several of its facilities. The development also follows an announcement made on August 29, when Adani Digital, Semolina Kitchen, and Encalm Hospitality expressed plans to discontinue certain services. In July, Dreamfolks said it was discontinuing certain programs for clients Axis Bank Ltd. and ICICI Bank Ltd.
Q1 Results
The company reported net sales of ₹348.95 crore in June 2025, marking an 8.77% increase from ₹320.80 crore in June 2024. Quarterly net profit rose 20.24% year-on-year to ₹22.19 crore compared to ₹18.45 crore in the same period last year. Meanwhile, EBITDA stood at ₹30.43 crore in June 2025, up 17.22% from ₹25.96 crore recorded in June 2024.
DreamFolks Services Stock Performance
In the last 1 year, the stock has lost over 72 percent of its investor wealth. Meanwhile, in the last 6 months and 3 months, the stock declined 38 percent and 51 percent, respectively.
The stock hit its new high of ₹518.15 in September 2024 and 52-week low of ₹122.25 in August 2025. It is currently 75 percent away from its record high.
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