DreamFolks eyes diversification beyond airport lounge services in India

Global airport lounge operations unaffected by India exit; co aiming for margin growth from new ventures

DreamFolks Services, a BSE-listed travel and lifestyle experiences company, is pinning its next growth phase on diversification to railway lounges, social clubs, golf games and lessons, highway dining, coffee at malls, and spa & wellness, among others, after moving out of the domestic airport lounge services segment in September.

 

The Gurugram-based company was the largest provider of airport lounge access services domestically, where it became a third-party platform between lounge operators and banks, allowing credit card holders to use airport lounge services. It discontinued the service in India after a legal battle with Encalm Hospitality, which wanted to deal with banks directly. Separately, Adani Airports Holdings started access to lounges directly through its in-house platform Adani OneApp in partnership with other lounge operators.

 

“There is a disruption in the industry. The majority of our revenue was from the Indian airport lounge business. Now, the complete focus is going to be on global (markets), DreamFolks Club Memberships, and other services,” Liberatha Kallat, founder and chairperson and managing director (CMD), DreamFolks Services, told Business Standard. She added that all of their client contracts are still alive and that none of the contracts has expired.

 

She further emphasised that the company is working with its clients on different projects right now. Owing to these changes in the industry, the company’s consolidated net profit was down by 45 per cent to ₹11.2 crore in the second quarter of 2025-26 (Q2FY26) compared with the same quarter last year. Meanwhile, its revenue from operations decreased by 35 per cent to ₹205.5 crore in Q2FY26 year-on-year (Y-o-Y). In the first half of 2025-26 (H1FY26), its margins were at 8.3 per cent compared with 8 per cent in H1FY25, according to its investor presentation.

 

“The focus as a company is not limited to just banks and network providers, we have also moved to enterprises. We also have OTAs (online travel agencies). Along with other travel benefit services curated by DreamFolks… very soon, we will launch all other services (beyond airport lounge access) that we have built in a couple of months,” said Kallat.

 

In line with diversification, the company entered the business-to-consumer (B2C) segment for the first time with DreamFolks Club Memberships. She noted that the rising spending patterns among Indians, and the country’s low penetration of credit cards compared to global markets are the major reasons for the company to focus on this segment. However, the company stated in its investor presentation that the average spend per credit card, which is an important criteria for being eligible for lounge access, has been rising for the last few years in India, showcasing the growing adoption of credit cards in the country.

 

“We already have over 900 touchpoints globally. We are already present in 100-plus countries. In Singapore (where the company has an office), we have started tying up with banks. Our focus market is Apac (Asia-Pacific) and the West Asian region,” she noted.

 

Additionally, the company acquired 50.01 per cent in Ten11 Hospitality LLP, which has presence in key railway lounge locations such as Chennai, Mumbai, and Vadodara, with operations already being started in Chennai. This is expected to lay the groundwork for rapid expansion into additional high-traffic railway hubs across the country, its investor presentation stated.

 

On further acquisition opportunities, Kallat said: “We are looking at opportunities. The hunt is on.”

 

As of September 30, the company had around ₹14 crore in cash and cash equivalents.