Dreamfolks Services , a key player in the airport services sector, saw its shares tumble for the second consecutive session, dropping 5% to Rs 124.51. The sharp decline comes in the wake of the company's announcement of its immediate exit from the domestic airport lounges business, a move that has sent ripples through the market.

Exit from Domestic Airport Lounges

The company has discontinued access to domestic airport lounges for its clients, acknowledging that the impact of this decision is material. However, Dreamfolks assured that its other domestic services and global lounge business would continue to operate.

Recent Contract Terminations

This latest development follows a string of setbacks for Dreamfolks:

• Travel Food Services terminated its contract to provide lounge access services to Dreamfolks customers, effective September 15.
• The company has faced three order terminations recently:
  1. Adani Digital
  2. Semolina Kitchen
  3. Encalm Hospitality

These entities discontinued certain services with Dreamfolks last month, further impacting the company's operations.

Changing Landscape of Airport Services

The exit from the domestic airport lounges business comes amid a shifting landscape in the airport services sector. Major airport operators, including Adani Airports and GMR Airports, are now offering their own platforms for lounge access and related services. This move effectively bypasses intermediaries like Dreamfolks, potentially reshaping the industry dynamics.

Stock Performance

The recent developments have taken a significant toll on Dreamfolks' stock performance:

• The shares are down nearly 70% year-to-date.
• The stock has experienced a 5% drop for two consecutive sessions following the announcement.

This substantial decline reflects investor concerns about the company's future prospects in light of its exit from a key business segment and the loss of significant contracts.

As the airport services landscape continues to evolve, stakeholders will be closely watching Dreamfolks' strategy to navigate these challenges and maintain its position in the market.

Dreamfolks Services Limited , a key player in the airport services sector, has announced a significant operational change that is expected to have a material impact on its business. The company has discontinued its domestic airport lounge services to clients, effective September 16, 2025.

Operational Changes and Impact

In a regulatory filing to the BSE and NSE, Dreamfolks Services stated that the discontinuation of domestic airport lounge services would materially affect its operations. This move comes as a follow-up to an earlier disclosure made by the company on August 29, 2025, indicating that such a change was under consideration.

Continuing Operations

Despite this significant change, Dreamfolks Services emphasized that its other domestic services and global lounge business will continue to operate as usual. This suggests that the company is maintaining a portion of its service portfolio while restructuring its domestic offerings.

Client Relationships and Future Propositions

The company has assured stakeholders that existing contracts with clients remain active. Dreamfolks is currently engaged in discussions with affected clients to explore alternative customer value propositions. This proactive approach indicates the company's commitment to maintaining its client relationships despite the operational changes.

Transparency and Investor Communication

Harshit Gupta, Company Secretary and Compliance Officer of Dreamfolks Services, stated in the regulatory filing, "This disclosure is being made in the interest of transparency, governance, and investor awareness." The company has committed to providing further updates as they become available, maintaining open lines of communication with its investors and stakeholders.

Market Implications

As Dreamfolks Services adapts its business model, investors and market analysts will likely be watching closely to assess the long-term implications of this strategic shift. The material impact mentioned by the company suggests that this change could significantly affect its financial performance in the coming quarters.

Dreamfolks Services Limited is listed on both the BSE and the NSE. Investors are advised to monitor further announcements from the company for a comprehensive understanding of how this operational change may affect its market position and financial outlook.

For more information, stakeholders can visit the company's official website at www.dreamfolks.com , where updates on this development will be made available.