DREAM OVER FOR DREAMFOLKS?

What’s the news? -Services of domestic airport lounges have been discontinued to clients, effective today. -The impact of the same is material. -Other domestic services and the global lounge business will continue as usual. What’s the impact? 87% revenue comes from domestic operations. 6% revenue comes from non-lounge services. 80% revenue to be impacted. Source – annual report/calculations by ET Now. Why the pressure on the company? -Certain programs with ICICI Bank and Axis Bank closed w.e.f. July 1. -Institutions have been selling stake over the last 2–3 years. DreamFolks loses moat: -The lounge biz is dependent on relations with bankers. -Recently, banks have started rolling back freebies like lounge access. -Large airport operators may provide direct access to lounges. Financials trend (in Rs cr): Dec 2024: Revenue 340, PAT 18 March 2025: Revenue 314, PAT 16 June 2025: Revenue 395, PAT 22