Dreamfolks exits domestic airport lounge services biz; stock slips 5%
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Shares of Dreamfolks tumbled 5% to hit a low of ₹131 on the BSE on Wednesday. | Credits: Shutterstock
Dreamfolks exits domestic airport lounge services biz; stock slips 5%
Dreamfolks Services Ltd has ceased its domestic airport lounge services, impacting its stock by a 5% drop. Despite this, the company assures that other domestic and global services remain unaffected, and client contracts are still active. The move comes amid a challenging market environment, with several banks and airport operators shifting partnerships.
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Dreamfolks says its global lounge business will continue as usual.
Shares of Dreamfolks tumbled 5% to hit a low of ₹131 on the BSE on Wednesday. | Credits: Shutterstock
Airport lounge access provider Dreamfolks Services Ltd has “discontinued” domestic airport lounge services as its suppliers terminate contracts. Dreamfolks said the move will have a “material” impact on its operations and financial performance.
“The other domestic services and global lounge business will continue as usual,” Dreamfolks said in a statement.
“We reiterate that contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress,” it added.
Reacting to the development, shares of Dreamfolks tumbled 5% to hit a low of ₹131 on the BSE, bringing down the company’s market cap to under ₹700 crore.
In August, Dreamfolks said that three of its suppliers — Encalm Hospitality, Adani Digital and Semolina Kitchens — will end their contracts. While Adani Digital and Semolina Kitchens ended the contract on September 15, Encalm Hospitality, the key lounge services provider at Delhi Airport, is going to end it from November 1, 2025.
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“With respect to Encalm Hospitality, the Company filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (India), seeking interim injunctions at the Honourable High Court of Delhi,” it had said.
Dreamfolks Services, which made its debut on the domestic bourses in September 2022, has seen its stock price crash 67% in 2025.
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Until last year, Dreamfolks managed airport lounge access for most of the top banks and enjoyed a market share of around 90% in the domestic lounge access market for India-issued debit and credit programmes.
Cut to 2025, DreamFolks has lost several contracts from banks and airport operators in recent months. ICICI Bank was among the first lenders to sever ties with Dreamfolks.
This also comes at a time when private airport operators have become lounge operators themselves. Adani Group terminated its lounge agreements with Dreamfolks and forged a new partnership with ICICI Bank.
“While we have seen few banks shift their partnership and others may be facing pressure to do the same, I want to emphasise that our agreements with all clients remain firmly in place. We are working closely with them to integrate our new service offerings beyond airport lounges, a strategic initiative that we believe will yield significant results over time,” Liberatha Kallat, Chairperson and Managing Director of Dreamfolks, said in an analyst call last month.