Dreamfolks Services hits new low, tanks 33% thus far in July; here's why

Certain programs of the clients, Axis Bank and ICICI Bank have been closed w.e.f. July 01, 2025

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.

 

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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. CLICK HERE FOR MORE DETAILS

 

About Dreamfolks Services 

 

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.