Dreamfolks Services Share Price Drops Nearly 5% After Programme Closures with ICICI and Axis Bank

Market Performance

Shares of Dreamfolks Services saw a sharp decline of 4.7% in intra-day trade on Wednesday, slipping to ₹225 on the NSE. This drop in Dreamfolks Services' share price comes amid growing investor concerns following the company's latest announcement.

The stock has been trading on a downward trend and is currently:

• 57% below its 52-week high of ₹522 (September 2024)
• Just above its 52-week low of ₹193.60 (April 2025)
• Down 52% over the past year

Recent Monthly Performance:

• June 2025: -7.6%
• May 2025: +9%
• April 2025: +8%
• Sept 2024 to Mar 2025: 7 consecutive months of decline

Main News: Programme Closures Raise Red Flags

The sudden dip in Dreamfolks Services' share price was triggered by a regulatory filing made by the company on Monday. The filing confirmed the closure of several service programmes linked with ICICI Bank and Axis Bank, effective July 1, 2025.

While the company emphasized that contractual relationships with the banks remain intact, it acknowledged that the discontinued programmes could have a "material impact" on its financials.

Key Highlights:

• Programmes with ICICI Bank and Axis Bank have been discontinued
• Effective date: July 1, 2025
• Impact is being evaluated, but is likely material
• The company reaffirmed that this is part of routine business cycles

Dreamfolks also reiterated its dedication to:

• Regulatory compliance
• Timely disclosures
• High standards of corporate governance

Company Details: Changing Industry Dynamics

The airport lounge aggregation space is currently undergoing a significant transformation. Leading banks, such as ICICI and Axis, along with card networks like Mastercard, are increasingly forging direct partnerships with lounge operators, thereby bypassing aggregators like Dreamfolks.

This shift intensified after a temporary service disruption on September 22, 2024, which caused widespread inconvenience and placed Dreamfolks under scrutiny for its service reliability.

The discontinuation of programmes by major banks is seen as a continuation of this industry trend.

Financial Performance Snapshot

Despite revenue growth, Dreamfolks Services' profitability remains weak. Here's a breakdown of the latest financials:

Quarter Ended March 2025

• Revenue: ₹314.16 Crore (↑11.75% YoY)
• Net Profit: ₹14.94 Crore (↓17.09% YoY)

Full FY25 Performance

• Revenue: ₹1,291.88 Crore (↑13.82% YoY)
• Net Profit: ₹65.43 Crore (↓5.17% YoY)

Despite revenue growth, the fall in net profits has impacted investor sentiment.

Summary

The sharp decline in Dreamfolks Services' share price follows the announcement of programme closures with ICICI Bank and Axis Bank, adding fresh pressure on the stock. Although the company maintains its broader partnerships, the potential financial impact appears significant.

With evolving trends in the lounge aggregation industry and a weak bottom line, Dreamfolks Services finds itself at a crucial juncture. The coming quarters will be vital in understanding how well the company adapts to this shifting landscape.