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DreamFolks Services Limited described FY26 as a transformative year marked by a structural shift in India's credit card and airport lounge ecosystem. Consolidated revenue declined to Rs. 660.6 crore from Rs. 1,291.9 crore in FY25, primarily due to the reset in the domestic lounge business. However, the company is accelerating its diversification into global lounges, railway lounges, lifestyle and wellness services, and B2C memberships. Global lounge transaction volumes grew 140% year-on-year, while the company's global lounge network expanded to more than 1,000 airport touchpoints.
The Print Times
DreamFolks Services Limited is repositioning its business from a predominantly lounge-access model into a diversified travel and lifestyle benefits platform, following a challenging FY26 marked by structural changes in India's credit card ecosystem and weakness in domestic lounge volumes.
DreamFolks is one of the largest global travel and lifestyle services aggregator, dedicated towards elevating the airport experience for travellers through its cutting-edge technology platform. Since its inception in 2013, DreamFolks has evolved from offering lounge access services to offering a full suite of premium travel and lifestyle services enabled by comprehensive technology solution.
Speaking during the Q4 and FY26 earnings conference call on May 29, 2026, Liberatha Kallat, Chairperson and Managing Director, DreamFolks Services, said the year had tested the company's operating model but also sharpened its strategic focus and laid the foundation for sustainable and diversified growth.
The company said the Indian credit card ecosystem witnessed significant structural changes during FY26, including a broad shift from unlimited airport lounge access to spend-based access models. Banks also increasingly redesigned their customer value propositions, moving beyond traditional domestic airport lounges toward more personalized and lifestyle-oriented benefits.
These changes had a significant near-term impact on industry volumes and DreamFolks' financial performance, as its domestic business had historically contributed more than 90% of revenue. The company, however, said the structural shift is also accelerating a transition that is aligned with its longer-term diversification strategy.
Global business records strong growth
DreamFolks' global business emerged as one of the strongest growth areas during FY26. Transaction volumes under its global lounge programme increased 140% year-on-year, while the global lounge network expanded to more than 1,000 airport touchpoints.
The company is also in advanced stages of enabling its premium services for multiple global banks and card networks in Southeast Asia. According to management, these programmes are expected to open new revenue opportunities while demonstrating the company's ability to deploy its technology-led platform internationally.
DreamFolks also highlighted its ongoing acquisition of Easy To Travel (ETT) as an important component of its international expansion strategy. The transaction is expected to provide access to ETT's international distribution network, global partnerships and technology platform, while strengthening DreamFolks' presence in high-growth markets such as the Middle East.
Railway lounge business expands
The company strengthened its railway lounge business through the acquisition of Ten11 Hospitality in November 2025. The acquisition provides DreamFolks with direct ownership and operational control over premium railway lounge infrastructure.
DreamFolks has expanded its railway lounge footprint across key locations, with facilities in Chennai, Mumbai and Vadodara already operational, while the Lucknow facility is expected to commence operations soon.
The company expects the railway lounge business to benefit from India's railway modernization and increasing demand for premium travel experiences.
DreamFolks Club 2.0 expands B2C presence
Another major development during FY26 was DreamFolks' entry into the B2C segment through DreamFolks Club 2.0.
The enhanced membership platform has evolved beyond airport lounge access into a broader travel and lifestyle membership proposition covering global airport lounges, members-only clubs, golf, wellness, dining and curated experiences.
The company said the B2C initiative is supported by investments aimed at building customer awareness and demand, while also creating a platform for the company's expanding lifestyle services.
DreamFolks is also focusing on adding lifestyle services to its existing banking and card-network relationships. The company cited Coffee on the Go as an example of expanding its service catalogue within existing integrations to increase wallet share, strengthen client relationships and create recurring revenue opportunities without proportionate incremental costs.
Boarding pass-based benefits launched
DreamFolks has launched a boarding pass-based benefits programme with a leading Indian bank. The programme reflects the evolving premium-card market, where banks are increasingly looking beyond conventional lounge access toward personalized, experience-led benefits.
The company said its integrated platform enables banking partners to offer broader travel and lifestyle experiences while allowing DreamFolks to design, manage and scale differentiated programmes.
Lifestyle and wellness services become strategic focus
DreamFolks is also expanding into lifestyle and wellness services as part of its broader diversification strategy. The company highlighted the growth potential of India's wellness tourism market, which it said is expected to increase from nearly $31 billion currently to more than $43.7 billion by 2031, representing a CAGR of 7.2%.
Management said the expansion into lifestyle services is intended to reduce dependence on any single service line or geography while aligning with changing customer preferences and banking-partner propositions.
FY26 financial performance impacted by domestic reset
For FY26, DreamFolks reported consolidated revenue of approximately Rs. 660.6 crore, compared with Rs. 1,291.9 crore in FY25. Gross profit stood at approximately Rs. 74.2 crore, compared with Rs. 150.1 crore a year earlier.
Adjusted EBITDA declined to Rs. 25 crore from Rs. 102.1 crore in FY25, while full-year PAT stood at Rs. 11.6 crore, compared with Rs. 65.1 crore in the previous year.
For Q4 FY26, revenue stood at Rs. 52.6 crore, while gross profit was negative Rs. 6.1 crore. Adjusted EBITDA was negative Rs. 13.4 crore and PAT was negative Rs. 13 crore.
The company said near-term profitability was affected by the structural transition in its domestic lounge business. However, management expects the increasing contribution from lifestyle services and the expansion of global and railway lounge businesses to support future growth.
Strong balance sheet provides flexibility
Despite the decline in revenue and profitability, DreamFolks ended the year with Rs. 150 crore in cash and a net worth of Rs. 313.8 crore as of March 31, 2026.
Management said the strong balance sheet provides financial flexibility to pursue strategic initiatives while maintaining financial discipline during the company's transformation.
Focus shifts to global expansion and diversification
Looking ahead, DreamFolks identified several priorities for FY27, including scaling its global operations, increasing client diversification, accelerating adoption of lifestyle services and strengthening technology capabilities.
The company said these priorities are supported by live programmes, existing client relationships, ongoing contracts and the strategic initiatives undertaken during FY26.
Despite the near-term pressure caused by changes in domestic lounge access models and geopolitical disruptions affecting global travel, DreamFolks said its underlying business fundamentals remain resilient. The company expects normalization of international travel and flight corridors, together with pent-up travel demand, to support recovery while its diversified platform creates additional avenues for long-term growth.
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