Dreamfolks Services slips nearly 5% after programme closures with ICICI and Axis Bank

Shares of Dreamfolks Services dropped sharply on Wednesday, July 2, falling as much as 4.7 percent to ₹225 in intra-day trade after the company announced that several service programmes linked to major private sector banks had been discontinued. The development, disclosed via a stock exchange filing, triggered fresh concerns about the company's revenue stream and future outlook.

In a regulatory filing issued on Monday, Dreamfolks said that certain travel-related programmes associated with Axis Bank and ICICI Bank were discontinued effective July 1, 2025. While the company clarified that its overall contractual relationships with these clients remain intact, the shuttering of specific programmes may have “a material impact” on its financial performance, it noted.

“While the company is currently evaluating the exact potential impact of the aforesaid, it is likely to be material in nature,” Dreamfolks stated. However, it also added that activation and deactivation of such programmes are part of routine business operations and reaffirmed its commitment to taking necessary steps to mitigate the impact.

The company further reiterated its focus on corporate transparency and regulatory compliance: “The Company remains committed to adhering to the highest standards of corporate governance and will continue to inform the exchanges of any material events in a timely manner as required under applicable laws.”

The development comes on the heels of a broader shift in the airport lounge access industry, where leading banks like ICICI Bank and Axis Bank, along with card networks such as Mastercard, are increasingly considering direct tie-ups with lounge operators, bypassing aggregators like Dreamfolks. This trend gained traction after a "temporary service disruption" on September 22, 2024, which affected thousands of customers across multiple banks and card networks, drawing scrutiny over Dreamfolks' service reliability.

In terms of earnings, Dreamfolks' recent performance has not offered much comfort to investors. The company posted a 17.09 percent decline in net profit to ₹14.94 crore in the quarter ended March 2025, compared to ₹18.02 crore a year earlier. While revenue rose 11.75 percent year-on-year to ₹314.16 crore, the profitability took a hit.

For the full FY25, the company reported a 5.17 percent dip in net profit to ₹65.43 crore, even as sales grew 13.82 percent to ₹1,291.88 crore, up from ₹1,135.01 crore in FY24.

The stock has been under considerable pressure in recent months. It is now trading 57 percent below its 52-week high of ₹522, touched in September 2024, and just above its 52-week low of ₹193.60, seen in April 2025. Over the past year, Dreamfolks shares have declined 52 percent.

Monthly performance also reflects volatility. In June, the stock fell 7.6 percent, after recording gains of 9 percent in May and 8 percent in April. Before that, it endured seven straight months of declines from September 2024 to March 2025.

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