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Dreamfolks share price tanks after exit from airport lounge services in India
Dreamfolks Services started facing challenges after airport operators started looking to offer lounge access directly.
Shares of Dreamfolks Services Ltd. were locked in the lower circuit after the company said it has discontinued airport lounge services in India.
On Wednesday, Dreamfolks' share price fell as much as 5% to ₹131.07 on the National Stock Exchange even as the benchmark NSE Nifty 50 traded half-a-percent higher. The stock is down 65% in 2025.
“The services of domestic airport lounges have been discontinued to our clients, effective today,” the company said in an exchange filing on Tuesdsay. “The impact of the same is material. The other domestic services and global lounge business will continue as usual.”
“We reiterate contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress.”
Dreamfolks, which connects lounge operators with credit card networks and passengers, began facing challenges after airport operators started looking to offer lounge access directly. In August, the company had said that three of its customers—Encalm Hospitality, Adani Digital and Semolina Kitchens—would end their contracts, and that it is expanding focus on its global business.
In July, Dreamfolks said it was discontinuing certain programs for clients Axis Bank Ltd. and ICICI Bank Ltd.
