DreamFolks Shares Hit Lower Circuit After Suspending Domestic Lounge Access; Major Clients Like Adani Exit

DreamFolks Services Ltd., a key player in India's airport service aggregation market, has announced the suspension of its domestic airport lounge access services, a decision that took effect on Monday. The company's shares reacted sharply to the news, hitting a 5% lower circuit at Rs 131 on the Bombay Stock Exchange (BSE).

DreamFolks Services Share Price Today After Airport Lounge Service Suspension Announcement

As of 1:45 PM on September 17, DreamFolks Services Ltd.'s share price stood at Rs 131.07, marking a sharp decline of Rs 6.90 or 5.00% for the day. The stock opened at Rs 131.07 and remained flat throughout the trading session, with an intraday high and low both recorded at Rs 131.07, indicating that it hit the lower circuit limit and saw no further movement. This drop brings the stock significantly closer to its 52-week low of Rs 123.00, and far below its 52-week high of Rs 518.00.

DreamFolks Services Stops Domestic Airport Lounge Access

The announcement, made through a stock exchange filing, acknowledged that the move would have a significant impact on the company's core operations. This development comes as several of DreamFolks' key partners-including major lounge operators and banks-are shifting their strategies by pursuing direct collaborations, thereby eliminating the need for intermediaries.

Exit Decision To Impact Business

DreamFolks, which has built its business since 2013 by connecting lounge operators with card networks, banks, and travelers, is now under mounting pressure. The company had long held a dominant position-reportedly covering 90% of India's domestic lounge access market through card programs-but that dominance is now being challenged.

Travel Food Services, Adani Digital and Encalm Exit DreamFolks

Lounge operators like Travel Food Services Limited have ended their agreements with DreamFolks and initiated direct negotiations with banks. Similarly, Adani Digital and Encalm Hospitality have also notified DreamFolks of their intent to discontinue certain services, signaling a clear industry shift toward direct-to-bank models.

In addition to these contract terminations, DreamFolks had already announced the closure of certain lounge programs for Axis Bank and ICICI Bank customers earlier this year. These developments collectively threaten the sustainability of its aggregator model, which until now depended on acting as the intermediary between banks and service providers.

Despite the ongoing disruptions, DreamFolks has assured that its other domestic services and global lounge access offerings remain unaffected. In its filing, the company reiterated that contracts with clients are still in effect and that discussions are underway to develop new customer value propositions.

"The other domestic services and global lounge business will continue as usual. We reiterate that contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress," the company said in regulatory filing.