Latest news with #Dreamfolks
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Business Standard
11-07-2025
- Business
- Business Standard
Dreamfolks Services hits new low, tanks 33% thus far in July; here's why
Dreamfolks Services share price today Dreamfolks Services shares hit a new low of ₹158.50, falling 2.6 per cent on the BSE in Friday's intraday trade. Thus far in the month of July 2025, stock price of the airport & airport services company has tanked 33 per cent following the closure of the programmes run for its clients, including Axis Bank, and ICICI Bank, effective from July 1, 2025. With the past nine days' decline, shares of Dreamfolks have corrected 70 per cent from heir 52-week high level of ₹522, which the company had touched on September 6, 2024. Currently, the stock is trading 51 per cent below its IPO issue price of ₹326 per share. The company made its stock market debut on September 6, 2022. Closure of certain programmes of certain clients Dreamfolks, on July 1, 2025, informed that the company has been running various programme for Axis Bank and ICICI Bank. Certain programmes of the abovementioned clients, however, were closed w.e.f. July 01, 2025. Contracts with both the banks, although, are still valid. "While the master agreement with the mentioned banks continues to remain in place, some services — including lounge services offered on a certain category of cards — will be discontinued. The company is currently negotiating with ICICI and Axis banks about new services to be offered in place of the discontinued ones; thus, the potential impact of the said closure of programmes, though material, is difficult to assess as of now," according to analysts. CRISIL Ratings rationale That said, CRISIL Ratings has reaffirmed its credit ratings for the company on the overall sanctioned bank facilities at ₹145 crore. These ratings have been placed under watch with negative implications. CRISIL has indicated that it will continue to engage with Dreamfolks' management to closely monitor the measures taken by the management towards closure of its programmes with the banks, and its impact on the company's overall business and financial performance. The rating watch will be resolved once there is greater clarity on the matter, it said. Meanwhile, lounge services, which are majorly accessed through credit/debit cards, constituted ~93 per cent of the total revenue of Dreamfolks for fiscal 2025. The company's operating income is susceptible to changing credit card schemes as card operators and banks are now focusing on offering services based on spending (higher the spend, higher the eligibility to avail of service). According to CRISIL Ratings, Dreamfolks' revenue is expected to grow 15-20 per cent over the medium term, driven by rising passenger traffic with addition of airports across the country as the government focuses on infrastructure expansion. Diversifying into new segments such as highways, railways, lifestyle, food and beverages, golf courses and tie-ups with RedBeryl, Grey Wall and VFS Global will help Dreamfolks scale up operations and maintain strong market position. The operating margin declined to 8.4 per cent in fiscal 2024 from 12 per cent in fiscal 2023, and further reduced to 7.18 per cent in fiscal 2025, It is projected at 8-9 per cent over the medium term. There has been sizeable onboarding of employees in fiscal 2025 to manage the 3,000+ touchpoints; benefits for this may be visible only from fiscal 2026. The company has also penetrated into new segments such as highway dining, coffee, food and beverage outlets, lifestyle and ultra luxury experiences. Stability in the operating margin while maintaining growth in the new segments with prudent working capital management will be monitorable, CRISIL Ratings said in a rationale. Dreamfolks is India's largest airport service aggregator platform. It provides services such as lounge access, food and beverages, spa, meet and assist, airport transfer, transit hotels/nap room access and baggage transfer. Clients include major card networks, banks, online travel agents, airlines and enterprises.
Mint
10-07-2025
- Business
- Mint
All eggs in the credit-card basket, will Dreamfolks lose its near-monopoly tag?
For Dreamfolks, the last few months have been nothing short of a nightmare. Following a service disruption in September 2024 that invited a legal threat, there were reports that banks and credit-card companies could be looking to partner directly with lounge operators. In effect, they would cut out the middleman, Dreamfolks. This appears to be already playing out, based on an announcement by the company earlier this month. Dreamfolks announced the closure of programs for Axis Bank and ICICI Bank, effective 1 July. While the contracts with these banks are still valid, migration of certain card types to emerging competition stands to materially impact Dreamfolks' financials. Even institutional investors' confidence in the counter appears shaken. Industry tailwinds As Yolo-driven demand for travel and hospitality picked up post-pandemic, Dreamfolks rode the tailwinds to deliver around 170% annual revenue growth in FY22 and FY23. As the middle class expands and disposable incomes rise, the industry's prospects look promising. The government's focus on boosting tourism and the rising number of airports should help as well. The global lounge industry is slated to grow at a CAGR of 7.5% between 2023 and 2033. Dreamfolks was also positioned to benefit from the expansion of digital payments. With demonetization, affordable data services, and ubiquity of smartphones, credit cards in circulation as well as average card spend have grown over the years. As a dominant player in the Indian lounge aggregation industry with presence in 75 domestic airport lounges, 14 railway lounges, and deep-rooted relationships with marquee clients, Dreamfolks has so far been capitalizing on the industry tailwinds. It claims more than 90% share of India's card-based airport lounge access. Buoyed by the 7.5-8% growth reported in each, domestic air passenger traffic and the number of credit cards, Dreamfolks has grown at 13.5% in FY25. But the latest development threatens to upend its entire business model. On cue, large domestic institutional investors including Bajaj Finance and Motilal Oswal Mutual Fund have pared their stake in the company this week. Tech moat eroded? One of the primary moats supporting Dreamfolks' business model is its proprietary technology platform, which provides scalable and tailor-made client solutions. But this is at risk. Adani has claimed that banks and credit card companies' offers can now be directly availed of by flyers using the technology developed by Adani's in-house digital lab. If Adani's tech holds up to the hype, this could cause serious damage to Dreamfolks. Adani also has the network required to support the disruption. Dreamfolks' CEO, Liberatha Peter Kallat, has accused airport operators of pressuring their clients to end associations with the company. Adani operates seven airports in India. According to Kallat, the lounge operators, strong-arming Dreamfolks, control 35- 40% of the airport lounges in India. Dreamfolks clocked ₹1,291 crore in revenue and ₹65 crore in profits in FY25, a bulk of which came from lounge aggregation services. If some of the benefits from cutting out the intermediary are shared by the lounge operators with card issuers and networks, it would make business sense for them to make the switch. Diversification underway, but in baby steps In 2020, Dreamfolks went global by tying up with international operators. It forayed into railway lounges in 2022 and went beyond lounges in 2023. It has integrated itself across the travel chain—from visa services and airport transfers to meet and assist and transit hotels. At the airport, too, it has gone beyond lounge access with self-check-in kiosks, spa and wellness, food and beverages (F&B), and sleeping pods. It acquired Golfklik to venture into premium golf services. It has also entered beauty and grooming, gifting services, and social club access. The diversification continued in FY25 with its expansion in Malaysia, meet and assist expanded to more than 400 airports, F&B outlets added in 47 airports in India, 11 airports in South East Asia, and 18 in the Middle East. It has also started offering highway dining as a service, available at over 600 popular outlets across 60 highways in the country. In partnership with F&B brands like Costa Coffee, Barista, and Tim Hortons, it has introduced complimentary coffee at more than 200 malls in India. Other airport services added during the fiscal include a pay-and-use lounge-access model, baggage wrapping, and excess baggage services for premium customers. Silver linings Dreamfolks has taken initiatives to drive customer stickiness, such as a membership card, an in-app integrated solution for clients, and the latest – The Dreamfolks Club, an exclusive membership program launched in FY25. It will have to be seen whether these loyalty programs stick. While not all Indian airports are operated by Adani and that offers some respite, one cannot rule out other lounge operators following suit. Dreamfolks' original plan was to take the share of services other than airport lounge services from 6.7% of the topline in FY25 to 33% by FY30. This would support revenue growth as well as margins. Now would be a good time to expedite these diversification plans. The company's low debt profile and healthy cash-balance offers room for fast-tracking diversification. Until clear next steps emerge from the management, the target-prices previously quoted by brokers should be taken with a pinch (or more) of salt. For more such analyses, read Profit Pulse. Ananya Roy is the founder of Credibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
Time of India
04-07-2025
- Business
- Time of India
Dreamfolks sees Rs 169-cr stake sale by Bajaj Finance, others via block deal; shares tank 12%
Shares of Dreamfolks Services plunged 12% on Friday as a flurry of block deals worth Rs 169 crore spooked investors. Notably, Bajaj Finance , Motilal Oswal Mutual Fund and HRTI Pvt Ltd offloaded significant stakes. According to exchange data, Bajaj Finance sold 309,445 shares at Rs 196.32, translating to a deal size of Rs 61 crore. Motilal Oswal Mutual Fund offloaded 270,251 shares at Rs 211.14, amounting to Rs 57.04 crore, while HRTI Private Limited sold 261,485 shares at Rs 196.48, worth Rs 51.37 crore. Combined, these three block deals in Dreamfolks totalled 841,181 shares valued at approximately Rs 169.13 crore. Shares of Dreamfolks were sold at a discount from Thursday's closing price of Rs 217.58. The massive sell-off weighed heavily on Dreamfolks' stock price, which fell sharply in intraday trading as investors digested the sudden surge in supply. Live Events Dreamfolks, which provides airport lounge and travel services is a smallcap stock with a market capitalisation of Rs 1,010.53 crore. Also Read: Suzlon Energy gets 'no adverse observations' from NSE, BSE for merger with subsidiary The Dreamfolks stock has been a market underperformer, declining by 60% over a 1-year period when headline indices Nifty and Sensex have gained 4.84% and 4.31%, respectively. In 2025, so far, its fall has been to the tune of 52% versus Nifty's 7% uptick. The stock is currently trading in a strongly oversold zone with Friday's RSI and MFI standing at 23 and 9, respectively according to Trendlyne. A number below 30 is considered as oversold while above 70 is seen as overbought. Read More: Vedanta's investor dilemma: Dividend king, pauper returns; time to buy or say bye? The stock is also trading below its 50-day and 200-day simple moving averages of Rs 249 and Rs 336.
Economic Times
04-07-2025
- Business
- Economic Times
Dreamfolks sees Rs 169-cr stake sale by Bajaj Finance, others via block deal; shares tank 12%
Shares of Dreamfolks Services plunged 12% on Friday as a flurry of block deals worth Rs 169 crore spooked investors. Notably, Bajaj Finance, Motilal Oswal Mutual Fund and HRTI Pvt Ltd offloaded significant stakes. ADVERTISEMENT According to exchange data, Bajaj Finance sold 309,445 shares at Rs 196.32, translating to a deal size of Rs 61 crore. Motilal Oswal Mutual Fund offloaded 270,251 shares at Rs 211.14, amounting to Rs 57.04 crore, while HRTI Private Limited sold 261,485 shares at Rs 196.48, worth Rs 51.37 crore. Combined, these three block deals in Dreamfolks totalled 841,181 shares valued at approximately Rs 169.13 crore. Shares of Dreamfolks were sold at a discount from Thursday's closing price of Rs massive sell-off weighed heavily on Dreamfolks' stock price, which fell sharply in intraday trading as investors digested the sudden surge in which provides airport lounge and travel services is a smallcap stock with a market capitalisation of Rs 1,010.53 crore. ADVERTISEMENT Also Read: Suzlon Energy gets 'no adverse observations' from NSE, BSE for merger with subsidiary The Dreamfolks stock has been a market underperformer, declining by 60% over a 1-year period when headline indices Nifty and Sensex have gained 4.84% and 4.31%, respectively. In 2025, so far, its fall has been to the tune of 52% versus Nifty's 7% uptick. ADVERTISEMENT The stock is currently trading in a strongly oversold zone with Friday's RSI and MFI standing at 23 and 9, respectively according to Trendlyne. A number below 30 is considered as oversold while above 70 is seen as overbought. ADVERTISEMENT Read More: Vedanta's investor dilemma: Dividend king, pauper returns; time to buy or say bye?The stock is also trading below its 50-day and 200-day simple moving averages of Rs 249 and Rs 336. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Yahoo
26-05-2025
- Business
- Yahoo
Dreamfolks Services Ltd (BOM:543591) Q4 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dreamfolks Services Ltd (BOM:543591) reported a 14% revenue growth for FY25, reaching INR 1,292 crore, outperforming the growth rates of domestic air passenger traffic and credit card issuance. The company successfully onboarded over 30 new clients and introduced 6 new services, expanding its client base and service offerings. Dreamfolks Services Ltd (BOM:543591) is diversifying its business model by adding services beyond airport lounges, aiming to increase non-lounge services to contribute up to 33% of revenue in the next 5 years. The company has strengthened its global presence, offering access to over 800 international airport lounges and expanding partnerships with major players like Plaza Premium. Dreamfolks Services Ltd (BOM:543591) is leveraging advanced technology and cloud solutions to enhance client experience and operational efficiency, positioning itself as a leading lifestyle services aggregator. The company's gross margin for FY25 was 11.6%, which, although within guidance, reflects pressure from changes in bank spend-based models. Despite revenue growth, the net profit margin remained flat at 5%, indicating challenges in translating revenue growth into higher profitability. Employee costs increased significantly, impacting short-term profitability, as the company expanded its workforce to support future growth. The volume of lounge access remained flat year-over-year, despite an increase in air passengers and credit cardholders, due to changes in bank access benefits. The company faces ongoing challenges in renegotiating costs with lounge operators and banks to improve margins, as 85% of revenue still comes from lounge services. Warning! GuruFocus has detected 1 Warning Sign with BOM:543591. Q: What are the expectations for top-line growth and margins for the next year? A: While specific numbers for the next year cannot be provided, the company has given guidance for the next five years, aiming to grow the top line by 2.5 times. (Unidentified_4) Q: How strong are the relationships with banking partners, and how deeply can you penetrate into the customer base? A: Relationships with banks remain very strong, with top 10 banks deeply integrated with Dreamfolks. Typically, the entire portfolio of a bank's credit or debit cards works with Dreamfolks, indicating deep penetration. (Unidentified_4 and Unidentified_5) Q: With domestic air traffic and credit card volumes growing, why has there been no volume growth in airport lounges? A: The volume remained flat due to the shift to spend-based programs by banks. However, Dreamfolks is adding new services and acquiring clients from competitors to drive future growth. (Unidentified_4) Q: What steps is the company taking to increase volume in airport lounges given the spend-based program impact? A: Dreamfolks is focusing on pay-and-use models, targeting enterprise clients, and expanding services within and outside airports to mitigate the impact of spend-based programs. (Unidentified_3 and Unidentified_5) Q: How does the pay-and-use model work, and what is its contribution to revenue? A: The pay-and-use model allows customers to purchase lounge access when their complimentary benefits are exhausted. While specific revenue contributions are not disclosed, it is part of the blended forecast with other services. (Unidentified_5) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
