Dreamfolks Services Q2 FY27 results: net loss of ₹10.74 crore vs ₹11.23 crore profit, revenue down 84.9%

How did Dreamfolks Services perform in Q2 FY27?

Dreamfolks Services reported consolidated revenue of ₹31.07 crore in Q2 FY27, down ₹174.45 crore or 84.9% from ₹205.52 crore in Q2 FY26. Total income was ₹33.82 crore, down ₹175.81 crore or 83.9%. EBITDA was negative ₹12.19 crore against ₹11.96 crore a year earlier, while the EBITDA margin fell from 5.8% to -39.2%.

The company reported a net loss of ₹10.74 crore in Q2 FY27, compared with a net profit of ₹11.23 crore in Q2 FY26. PBT was negative ₹12.88 crore against ₹15.03 crore, and basic EPS was negative ₹1.98 against ₹2.11. On a standalone basis, revenue was ₹29.12 crore and PAT was a loss of ₹9.06 crore.

Against Q1 FY27, revenue fell 20.4% to ₹31.07 crore from ₹39.01 crore. The net loss narrowed to ₹10.74 crore from ₹13.83 crore, EBITDA improved to negative ₹12.19 crore from negative ₹20.79 crore, and the EBITDA margin improved to -39.2% from -53.3%. Basic EPS was negative ₹1.98 against negative ₹2.57.

What changed in Dreamfolks Services' costs and profit?

Cost of materials fell ₹152.26 crore or 86.3% to ₹24.07 crore from ₹176.33 crore in Q2 FY26, while total expenses declined 76.0% to ₹46.70 crore from ₹194.60 crore. Employee cost rose ₹0.78 crore or 6.9% to ₹12.11 crore, finance costs rose 213.0% to ₹0.72 crore, depreciation rose 235.8% to ₹2.72 crore, and other expenses rose 20.0% to ₹7.08 crore.

Other income fell ₹1.36 crore or 33.1% to ₹2.75 crore from ₹4.11 crore. There was no exceptional item in the quarter. The tax line moved from ₹3.80 crore in Q2 FY26 to negative ₹2.82 crore, while EBITDA moved from ₹11.96 crore to negative ₹12.19 crore and PBT moved from ₹15.03 crore to negative ₹12.88 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹70.08 crore, down 87.4% from ₹554.47 crore in H1 FY26. Total income was ₹76.54 crore, down 86.4% from ₹561.14 crore. PBT was a loss of ₹31.2 crore against a profit of ₹43.52 crore, while PAT was a loss of ₹24.57 crore against a profit of ₹32.5 crore. Basic EPS was negative ₹4.54 against ₹6.1 in H1 FY26.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹367.19 crore, down from ₹383.71 crore at 31 March 2026, and total equity was ₹294.58 crore against ₹319.55 crore. Borrowings rose to ₹4.46 crore from ₹2.89 crore, while cash was ₹11.23 crore against ₹11.10 crore. Trade receivables fell to ₹62.71 crore from ₹134.36 crore and trade payables fell to ₹24.74 crore from ₹34.74 crore.

H1 FY27 operating cash flow was ₹35.85 crore, compared with negative ₹17.88 crore in H1 FY26. Investing cash flow was negative ₹34.48 crore against negative ₹0.50 crore, financing cash flow was negative ₹1.23 crore against positive ₹0.54 crore, and capital expenditure was ₹0.41 crore against ₹0.89 crore. Management said operating cash flow was driven by working-capital release.

How has Dreamfolks Services done over the last 8 quarters?

Revenue reached a high of ₹348.95 crore in Q1 FY26 before declining to ₹205.52 crore in Q2 FY26, ₹53.45 crore in Q3 FY26, ₹52.64 crore in Q4 FY26 and ₹39.01 crore in Q1 FY27. It fell to ₹31.07 crore in Q2 FY27, while PAT moved from a profit of ₹21.27 crore in Q1 FY26 to a loss of ₹10.74 crore.

The EBITDA margin peaked at 7.7% in Q1 FY26 and bottomed at -53.3% in Q1 FY27. It improved to -39.2% in Q2 FY27, while revenue declined further from ₹39.01 crore in Q1 FY27 and PAT remained a loss. Management said revenue declined sequentially from Rs. 390 Mn in Q1 FY27 to Rs. 311 Mn in Q2 FY27.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026, and approved Meena Lall as an additional director and independent director from 1 January 2027 for a three-year term, subject to shareholder approval. It also approved Sanyam Nagpal as an additional director and executive director from 1 January 2027 for a five-year term, subject to shareholder approval.

The board appointed TRC Corporate Consulting Private Limited as internal auditor for FY2026-27. It approved fixed deposits of INR 5.5 crore each with ICICI Bank Limited and AU Small Finance Bank Limited to secure overdraft facilities for subsidiary Ten 11 Hospitality Private Limited. The company also disclosed that completion of its ETT acquisition was expected to extend by an additional 180 business days beyond the previously extended timeline.

What did the auditors point out?

S S Kothari Mehta & Co. LLP issued unmodified limited review reports with an Emphasis of Matter. The auditors drew attention to a petition filed by Travel Food Services Limited before the National Company Law Tribunal, seeking initiation of Corporate Insolvency Resolution Process for an amount aggregating to approximately Rs. 114.00 million.

The auditors stated that management represented that the company strongly disputed the claims and had taken appropriate legal steps. They also stated that management represented that appropriate provisions had been made in the accounts and that the matter was not indicative of financial stress affecting the going-concern status of the company. Their conclusion was not modified in respect of this matter.

What did Dreamfolks Services' management say?

Management said the company had returned to positive gross profit in H1 FY27, with revenue from operations of Rs. 701 Mn, gross profit of Rs. 61 Mn and an 8.7% gross margin. It said the company remained loss-making at the adjusted EBITDA and PAT levels, with adjusted EBITDA of Rs. (88) Mn and PAT of Rs. (107) Mn in Q2 FY27. The presentation disclosed no quantified financial targets.

Management identified diversification beyond airport lounges, with non-airport services contributing more than one-third of Q2 revenue, along with cross-selling and wallet-share expansion across banks, card networks and enterprises. It also discussed railway lounge expansion through Ten11, private-club, golf and membership growth, and international expansion with additional SEA clients.

Management said H1 operating cash flow was driven by working-capital release: operating loss before working-capital changes was Rs. (322.7) Mn, working-capital changes added Rs. 715.8 Mn and post-working-capital operating cash flow was Rs. 393.1 Mn. It also identified customer concentration as an issue it was addressing through greater bank, card-network and enterprise diversification.

How did Dreamfolks Services shares react?

The filing appeared after market hours. The stock fell 7.1% after 5 minutes, 6.8% after 15 minutes and 5.3% after 30 minutes from the price when the filing appeared. By the reaction-day close it was down 2.8% from the pre-results close of ₹60.00.

By the next day's close, the stock was down 2.9% from its pre-results close. The Transport Infrastructure industry median rose 3.5% on the reaction day and 6.1% by the next day's close, leaving Dreamfolks Services 6.3 percentage points behind the industry on the reaction day and 9.0 percentage points behind by the next day's close.

Earlier reaction-day moves were mixed: the stock fell 1.6% on 13 August 2026 and 6.3% on 29 May 2026, rose 1.0% on 9 February 2026, fell 2.4% on 14 November 2025, rose 4.9% on 7 August 2025, and fell 5.1% on 23 May 2025, 5.6% on 7 February 2025 and 4.5% on 8 November 2024.