Dreamfolks Services Limited reported a consolidated net profit of ₹149.31 million for the financial year ended March 31, 2026, a significant decline from ₹650.50 million in the previous year. Revenue from operations for the year stood at ₹6,605.59 million, compared to ₹12,105.57 million in FY25. The board approved the audited financial results for both standalone and consolidated entities during its meeting on May 29, 2026. The company's adjusted EBITDA for FY26 was ₹250 million, with a margin of 3.8%, while net worth increased 4.3% year-on-year to ₹3,138 million.

Financial Performance

The company's standalone net profit for FY26 was ₹142.91 million, a decrease from ₹696.83 million in the prior year. Revenue from operations for the standalone entity was ₹6,580.96 million, down from ₹12,918.82 million in FY25. For the quarter ended March 31, 2026, the standalone net loss was ₹132.62 million, while the consolidated net loss was ₹130.10 million.

Strategic Developments

Management attributed the financial performance to a transition in the domestic credit card ecosystem, shifting from unlimited lounge access to spend-based models, and geopolitical headwinds affecting international travel volumes. Despite the revenue decline, the company strengthened its balance sheet, closing the year with cash and cash equivalents of ₹1,509 million. Global lounge transaction volumes grew 140% year-on-year, and the global lounge network expanded to over 1,000 airport touchpoints.

Strategic acquisitions included Ten11 Hospitality to bolster railway lounge infrastructure and the ongoing acquisition of Easy To Travel (ETT) to accelerate international expansion. The company also launched DreamFolks Club 2.0, marking its entry into the B2C segment with a comprehensive lifestyle membership ecosystem.

Auditor Re-appointment

The board approved the re-appointment of M/s. S S Kothari Mehta & Co. LLP, Chartered Accountants, as the statutory auditor for a second consecutive term of five years. The appointment is subject to shareholder approval at the ensuing Annual General Meeting and will hold office from the conclusion of the 18th AGM until the conclusion of the 23rd AGM.

Regulatory Disclosures

The statutory auditors issued an unmodified audit report with an Emphasis of Matter regarding a petition filed by Travel Food Services Limited under the Insolvency and Bankruptcy Code, 2016. The petition, filed before the National Company Law Tribunal, alleges a default of approximately ₹114.00 million. The company has disputed the claims and stated that appropriate provisions have been made, adding that the matter does not affect its going concern status.

The trading window for dealing in equity shares, which was closed since April 01, 2026, will reopen 48 hours after the declaration of the audited financial results.

Dreamfolks Services Limited has approved the grant of 1,98,000 Employee Stock Options under its Dreamfolks ESOP 2021 scheme. The decision was taken by the company's Nomination and Remuneration Committee during a meeting held on May 23, 2026. These options are convertible into an equal number of fully paid-up equity shares, each with a face value of ₹2.

Key Details of the Grant

The options have been granted to eligible employees of the company. The exercise price for the options has been fixed at ₹96.46, subject to the conditions outlined in the Dreamfolks ESOP 2021. The scheme is compliant with the SEBI (SBE & SE) Regulations, 2021.

Exercise Timeline and Conditions

Following vesting, the options can be exercised either wholly or partly. The maximum period allowed for exercise is five years from the date of respective vesting. This right is contingent upon the employee's continued employment with the company at the time of vesting. To exercise the options, eligible employees must submit an application along with payment of the exercise price, applicable taxes, and any other charges.

Summary of ESOP Grant