Dreamfolks Share Price Drops 5% After Domestic Airport Lounge Services Shutdown

Post by : Saif Ali Khan

Dreamfolks Services, once one of India’s largest airport lounge aggregators, saw its share price drop sharply after announcing the closure of its domestic airport lounge business. On 17th September 2025, the company’s shares hit a 5% lower circuit, trading at ₹131 on the National Stock Exchange. This marks a major change for the company, though other services, including global lounge operations, remain unaffected.

Reason Behind the Closure

The company informed stock exchanges that domestic airport lounge access for its clients has been discontinued immediately. Dreamfolks stated that the decision would have a “material” impact, but assured that all other domestic services and international lounge operations would continue without disruption. Client contracts remain active, and the company is exploring alternative services to maintain customer satisfaction.

This move follows a series of partner withdrawals. Travel Food Services recently ended its association with Dreamfolks, which had previously aggregated lounge services for banks and networks. Earlier, Adani Digital, Semolina Kitchen, and Encalm Hospitality had also announced discontinuation of certain services. Dreamfolks had also cut some programs for major banks like Axis Bank and ICICI Bank in July 2025.

Financial Impact

Despite the closure, Dreamfolks reported strong quarterly results for June 2025. Net sales rose to ₹348.95 crore, up 8.77% from ₹320.80 crore in June 2024. Quarterly net profit increased by 20.24% year-on-year to ₹22.19 crore, compared to ₹18.45 crore in the same period last year. EBITDA also improved to ₹30.43 crore, showing a 17.22% increase from the previous year.

These results indicate that while the domestic lounge business contributed significantly to the company’s overall revenue, other operations and international services are helping to sustain growth.

Market Reaction

Investors reacted immediately to the news, leading to the 5% fall in Dreamfolks’ share price. Analysts suggest that while the short-term impact on stock performance is clear, the company’s efforts to introduce alternative services and focus on international expansion could stabilize its business in the long run.

Dreamfolks continues to explore strategic partnerships and new services beyond airport lounges. These include premium pick-up and drop services, visa assistance, wellness packages, and other travel-related offerings. Management has also indicated plans to expand in Southeast Asia and the Middle East, targeting markets where airport and travel services are growing rapidly.

Disclaimer

This report is based on publicly available information and company filings. Investors should conduct their own research and consult financial advisors before making investment decisions.

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