1. At a Glance
DreamFolks Services Ltd — the self-proclaimed VIP concierge of the Indian skies — has finally hit a little turbulence. With amarket cap of ₹642 croreand astock price hovering around ₹120(after nosediving 72% in a year), the so-called “gateway to experiences” is now battling gravity. In Q2 FY26,revenue clocked ₹2,055 millionwhilePAT stood at ₹112 million, marking a sharp slowdown from the peak FY25 figures. Thecompany’s P/E of 9.9,ROE of 24.2%, andROCE of 33.7%still look pretty, but the narrative underneath is screaming: “Turbulence ahead!”
Return oversix months: -53.2%. Overthree months: -13.5%. If frequent flyers lost luggage, DreamFolks seems to have lost investor confidence. Add a CRISILdowngrade to BBB-/A3and the decision todiscontinue domestic airport lounge services from September 2025, and we have a company that went from “dream” to “drama” faster than an IndiGo boarding call.
Still, it’s not all gloom. The company isdebt-light (₹10.2 crore), sitting ona comfortable current ratio of 3.52, and expanding intorailway lounges and highways dining services.That’s right — DreamFolks is diversifying from terminals to toll plazas. Now the passengers stuck in traffic might soon get their cappuccino too.
2. Introduction
Once upon a terminal, DreamFolks Services was the silent partner behind your “exclusive” lounge access — that magical moment when your credit card made you feel like royalty before a flight delay ruined everything. Incorporated in 2008, DreamFolks built anasset-light platform model, connectingbanks, card networks, and corporatestoairport service providers. With a staggering95% market share in India’s card-based lounge access, it practically monopolized the airport experience business.
But as every frequent flyer knows, monopolies too have turbulence warnings. FY25 looked good on paper: ₹1,209 crore revenue, ₹64.6 crore PAT, 14% return on assets, and a debt-equity ratio of 0.03. Yet, post that peak, the descent began. The company’s top five clients contributed84.9% of revenue, making it the corporate equivalent of putting all eggs in one credit-card-shaped basket.
Then came 2025 — the CFO resigned in February, CRISIL threw a downgrade in September,Adani Digital and Encalm (two major lounge operators)pulled out, and by November, DreamFolks was left managing more press releases than passengers.
To its credit, management didn’t freeze. Itacquired 50.01% of Ten11 Hospitality LLP(railway lounges),partnered with RedBerylfor luxury experiences, andexpanded its reach beyond airportsto highways and hospitality. Essentially, DreamFolks is trying to become the Zomato of premium travel — without the food delivery mess (for now).
3. Business Model – WTF Do They Even Do?
DreamFolks operates like that friend who doesn’t own anything but somehow arranges everything. It connectsbanks, airlines, telecoms, and corporateswithairport lounges, spas, hotels, and visa services— and takes a cut every time you swipe your card to get that “free” cappuccino at Plaza Premium.
Theirasset-light modelmeans they don’t actuallyownlounges — they just manage access. Think of it as India’s “MakeMyTrip” for the pre-boarding zone. Withtie-ups with Visa, MasterCard, RuPay, Diners, and Discover, andclients like ICICI, HDFC, Axis, Kotak, and SBI Cards, DreamFolks runs the invisible network that powers airport pampering.
Now, the company is stretching beyond lounges:
- Visa facilitationthroughVFS Global– “Visa at Your Doorstep” (finally, some joy for Schengen sufferers).
- E-SIM services– partnered with Matrix, because what’s travel without connectivity anxiety?
- DreamFolks Club– an annual membership program bundling lounges, golf, spas, and floral gifting (basically, a lifestyle subscription for frequent flyers with guilt).
- Highway dining– announced in 2024 to “expand beyond airports.” Soon, maybe they’ll do metro refreshments too.
It’s an ecosystem play, no doubt. But like all aggregators, DreamFolks depends on others to execute. WhenAdani Digital, Semolina, and Encalmdecided to cut ties, DreamFolks’ service map suddenly looked like Swiss cheese — full of holes.
4. Financials
Overview
| Metric (₹ crore) | Q2 FY26 (Latest) | Q2 FY25 (YoY) | Q1 FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 205.5 | 317 | 349 | -35.1% | -41.2% |
| EBITDA | 12 | 23 | 27 | -47.8% | -55.6% |
| PAT | 11.2 | 16 | 21 | -30.2% | -46.7% |
| EPS (₹) | 2.11 | 3.03 | 3.99 | -30.4% | -47.1% |
Commentary:The numbers read like a grounded flight schedule — everything delayed, everything down. Revenue fell by a third year-on-year, EBITDA nearly halved, and PAT looks like it lost its boarding pass. Blame it onservice discontinuation at domestic airportsandclient pullouts.
Still, theannualized EPS of ₹8.4(2.11 × 4) gives a P/E of ~14.2 on CMP ₹120, which isn’t terrible. But when growth evaporates, even cheap feels expensive.
5. Valuation Discussion – Fair Value Range Only
Let’s crunch this:
- Annualized EPS (FY26E)= ₹8.4
- Industry P/E≈ 10
- DreamFolks’ Current P/E= 9.9
Method 1: P/E ApproachFair Value = EPS × P/E Range (8–12) = ₹67–₹101
Method 2: EV/EBITDAEV/EBITDA = 6.37; FY25 EBITDA ₹89 crore → EV ≈ ₹567 croreAdd/Reduce for growth deceleration → Fair EV range ₹500–₹650 croreWith debt ₹10 crore → Equity Value ≈ ₹490–₹640 crore → Per share ₹92–₹120
Method 3: DCF (Conservative)Assume FCF ₹40 crore, growth 5%, discount rate 12% → intrinsic ~₹110–₹115
📊 Fair Value Range: ₹90 – ₹115(Educational purpose only, not investment advice)
6. What’s Cooking – News, Triggers, Drama
DreamFolks has been busier than an airport announcement board. Here’s what’s been flying around:
- November 2025:AcquiredTen11 Hospitality LLP (railway lounges)for ₹11.46 crore — signaling a pivot from airports to platforms.
- September 2025:Discontinueddomestic airport lounge services, citing supplier terminations (Adani Digital, Semolina, Encalm). Translation: someone else grabbed their gates.
- September 2025:CRISIL downgradeto BBB-/A3. Imagine your flight upgraded to economy mid-air — that’s what this feels like.
- April 2025:New CFO —Shekhar Sood— takes charge after Giya Diwaan’s resignation.
- September 2024:LaunchedHighway dining services— from runway to roadway.
- Partnerships:
- RedBerylfor luxury experiences (Olympics, private jets, Michelin dining).
- Grey Wall (Russia)for international lounge access.
- VFS Globalfor visa
