Dreamfolks Services , a leading travel and lifestyle benefits platform, reported a significant revenue decline in the second quarter of fiscal year 2026 as the company navigates a strategic business transition. The company's financial results reflect both challenges and opportunities as it pivots towards new growth avenues.

Financial Performance

Dreamfolks Services reported revenue of ₹205.50 crores in Q2FY26, marking a 35% decrease from ₹316.90 crores in Q2FY25. Despite the revenue decline, the company managed to improve its profitability ratios:

Strategic Transition

The company's financial performance reflects a significant shift in its business strategy:

1. Discontinuation of Domestic Airport Lounge Program: Dreamfolks has discontinued its domestic airport lounge program, which was a major revenue contributor. This decision is part of a broader strategic realignment.

2. Global Expansion: The company has expanded its global operations, now offering access to over 900 touchpoints worldwide. Global lounge business revenue doubled in Q2 compared to Q1, accounting for approximately 13% of total revenue.

3. Diversification into Railway Lounges: Dreamfolks acquired a 50.01% stake in Ten11 Hospitality for ₹11.46 crores, marking its entry into railway lounge operations. The company now has operational control over lounges in Chennai, Mumbai, and Vadodara.

4. New Business Streams: The company is transitioning to new business streams, including global lounges, premium lifestyle services, and railway infrastructure.

Future Outlook

Dreamfolks Services expects further revenue impact in the coming quarters as it continues its transition. However, the company remains optimistic about its long-term prospects:

• The global lounge business is expected to grow significantly, with passenger traffic forecasted to exceed 12 billion by 2030.
• The company sees potential in the railway lounge sector, drawing parallels with the developed ecosystems in countries like China and Russia.
• Dreamfolks is expanding its service portfolio to include access to members-only social clubs, golf facilities, and other premium lifestyle experiences.

Management Commentary

Liberatha Kallat, Chairperson and Managing Director, stated, "While this quarter's financial performance reflects a period of transition, we view it as a stepping stone towards stronger, more diversified growth. Our Global Lounge business continues to scale rapidly, and with the introduction of new-age benefits on credit cards and enterprise programs, we are well-positioned to regain momentum and deliver sustainable growth in the quarters ahead."

The company maintains a strong balance sheet with a net worth of ₹333.10 crores, up by 25.8% compared to the same time last year. Cash and cash equivalents stood at ₹141.00 crores at the end of the quarter.

As Dreamfolks Services navigates this transitional phase, investors and stakeholders will be closely watching the company's ability to execute its new strategy and return to growth in the coming quarters.

Dreamfolks Services Limited , a key player in the Indian hospitality sector, has announced a significant strategic move by acquiring a majority stake in Ten11 Hospitality LLP. This acquisition marks a notable expansion in Dreamfolks' business operations, particularly in the railway lounge service segment.

Acquisition Details

Dreamfolks Services has successfully completed the acquisition of a 50.01% partnership stake in Ten11 Hospitality LLP from its existing partners. This move, disclosed to the BSE and NSE on November 10, 2025, transforms Ten11 Hospitality LLP into a subsidiary of Dreamfolks Services.

Financial Aspects of the Deal

The acquisition involves a substantial investment by Dreamfolks Services:

About Ten11 Hospitality LLP

Ten11 Hospitality LLP, the acquired entity, brings valuable assets to Dreamfolks Services:

Financial Performance of Ten11 Hospitality LLP

The acquired company has shown significant growth in its turnover over the past three years:

Strategic Implications

This acquisition aims to consolidate and strengthen Dreamfolks' value chain, particularly in its existing railway lounge service operations. The company expects this move to provide physical infrastructure and assets at key railway stations for lounge services, with potential for expanding into other railway-related services.

Regulatory Compliance

The acquisition has been conducted in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Dreamfolks Services has confirmed that this transaction does not fall under related party transactions, and no governmental or regulatory approvals were required for the acquisition.

This strategic move by Dreamfolks Services represents a significant step in expanding its footprint in the hospitality sector, particularly in railway-related services. The acquisition of Ten11 Hospitality LLP, with its focus on premium lounges, aligns well with Dreamfolks' existing business model and may potentially open new avenues for growth in the railway hospitality segment.