Dreamfolks strategically shifts amidst revenue dip, expands railway lounge network

Dreamfolks Services Limited reported its Q2 FY26 results with revenue at INR205.5 crores, a decrease from INR316.9 crores in Q2 FY25. Despite this, gross profit margin expanded to 14.2% from 12.4% year-on-year, and PAT margin increased to 5.5% from 5.1%. For H1 FY26, revenue stood at INR554.5 crores compared to INR637.7 crores in H1 FY25, with PAT at INR32.5 crores. The company's balance sheet remains strong with a net worth of INR333.1 crores and cash and cash equivalents of INR141 crores at quarter-end.

A key strategic development is the acquisition of a 50.01% stake in Ten11 Hospitality LLP for INR11.46 crores, marking Dreamfolks' entry into direct ownership and operation of premium railway lounge infrastructure. This move aligns with government initiatives to modernize railways. The company also launched DreamFolks Club 2.0, a B2C membership platform, and partnered with WSFx Global Pay and The Card Company to expand its fintech integration.

Dreamfolks is focused on global expansion, client diversification, premium lifestyle services, and technological transformation, aiming for sustainable, high-margin growth. Global airport touchpoints now exceed 900, with global lounge transaction volume more than doubling from Q1 FY26. While Q2 FY26 revenue still heavily relied on domestic airport lounges, a significant impact from their discontinuation is expected in Q3 and Q4.