Dreamfolks Servi

Dreamfolks reported a steady Q1 FY26 with operating revenue of INR 348.9 crores, marking an 8.8% year-on-year growth compared to INR 320.8 crores in Q1 FY25. Gross profit increased by 24% to INR 46.6 crores, with gross margin improving to 13.3% from 11.7% in the prior year. Adjusted EBITDA stood at INR 30.5 crores, reflecting an 18.7% YoY increase, and PAT grew by 24% to INR 21.3 crores, with a PAT margin of 6.1%.

The company is actively evolving from a lounge aggregator to a broader travel and lifestyle experience platform, aiming to democratize aspirational services. This involves diversifying into non-lounge services such as golf, railway lounges, wellness packages, Coffee at Malls, and premium social clubs. Management projects that services beyond lounge offerings will contribute approximately one third of total revenue quicker than previously expected, and these new services are anticipated to yield slightly better margins.

Dreamfolks acknowledged increased competition from private airport operators, who have essentially become lounge aggregators themselves. Furthermore, two major banks have shifted their lounge access contracts from Dreamfolks' platform, with management indicating that more banks may be under pressure. While existing contracts for other programs with these clients remain in place, the exact revenue impact from the shifted lounge programs cannot be quantified at this time.

The company is broadening its client base, having onboarded over 40 new enterprise clients in the Travel and Lifestyle industry in the last year. Dreamfolks also launched four new programs with banks and is deepening its geographic footprint across non-metro cities in India and internationally in Southeast Asia and the Middle East. The Golf portfolio saw significant expansion with 60 new international touch points, bringing the global network to over 800 clubs, including 64 in India.

Dreamfolks is investing in a modern, cloud-based tech platform to enhance agility, enable real-time collaboration, and offer personalized experiences. This flexible platform allows customers to customize and bundle services, supporting a 'complete customer value proposition' and a 'membership model' rather than a per-transaction model. This technological advancement is seen as a strategic asset to differentiate the company from competitors and cater to evolving client needs.

The Indian credit and charge card market is experiencing strong momentum, growing by 28% in 2023 and 15.3% in 2024, with 111 million cards in circulation by June 2025. The market is projected to grow approximately 14% in 2025, reaching Rs. 25.4 trillion in annual spend. Global Data forecasts a compound annual growth rate of roughly 11.5% between 2025 and 2029, pushing the credit and charge market to Rs. 39.3 trillion by 2029, indicating a robust environment for Dreamfolks' services.