The drop came after the company announced on Tuesday, 16 September 2025, that services of domestic airport lounges have been discontinued for its clients with immediate effect.
The firm clarified that while domestic lounge access is no longer available, other domestic services and its global lounge business remain operational. It added that contracts with clients continue to remain active, and discussions are underway to provide alternate value propositions.
This update follows the company’s August 29 disclosure, when it revealed that key suppliers including Adani Digital, Semolina Kitchens and Encalm Hospitality had indicated plans to discontinue lounge-related services. At that time, Dreamfolks had approached the Delhi High Court under Section 9 of the Arbitration and Conciliation Act against Encalm Hospitality while engaging with other suppliers to reconsider their decisions.
The company had also warned that any discontinuation could materially impact operations and financial performance. In response, it has accelerated its focus on the global lounge business and diversified offerings to mitigate risks and sustain client relationships.
Dreamfolks Services is a travel and lifestyle services aggregator, offering a wide range of experiences including airport, railway and visa centre lounge access, social clubs, golf sessions, spa and wellness, F&B deals, beauty services, e-sim, highway dining, and more. Leveraging its proprietary technology platform, the company partners with banks, card networks, airlines, online travel agencies and enterprises to design customised value-added offerings for their customers.
The company's consolidated net profit rose 23.79% to Rs 21.28 crore on a 8.77% rise in revenue to Rs 348.95 crore in Q1 FY26 over Q1 FY25.