Dreamfolks Services Limited has informed the Exchange about Transcript
DREAMFOLKS · price
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Dreamfolks reported a sharp decline in Q3 FY26 results with revenue at INR 53.4 crores versus INR 340 crores in Q3 FY25, dragged down by the recalibration of its domestic lounge business. The company slipped to a loss with adjusted EBITDA of negative INR 7.6 crores and a PAT loss of INR 7.9 crores. Despite near-term headwinds, the company highlighted that its global lounge business now contributes 68% of revenue and is growing around 200% year-on-year. Two strategic acquisitions were completed: Ten11 Hospitality (railway lounges) and Easy To Travel (international expansion), along with the launch of DreamFolks Club 2.0 (B2C membership). The balance sheet remains strong with INR 129 crores in cash and net worth of INR 326 crores.
Near-term profitability remains under pressure with no specific recovery timeline given, though management expects to turn cash positive within 2-3 quarters. The strategic shift toward global lounges, railway lounges, and lifestyle services could rebuild the business over 3-5 years, with management guiding to INR 500+ crores potential from railway and global businesses each at 9-10% EBITDA margins. Investors should note continued quarterly volatility until the legacy domestic lounge transition completes.