'Material impact': Dreamfolks shares tumble 5% as co exits domestic airport lounge biz
To recall, Dreamfolks had in August received communications from suppliers, indicating their intention to discontinue certain services.
- Sep 17, 2025,
- Updated Sep 17, 2025 1:53 PM IST
Shares of Dreamfolks Services Ltd tumbled 5 per cent in Wednesday's trade after the company said it has discontinued services of domestic airport lounges to its clients, effective Tuesday. Impact of the same is material, the company warned adding that th other domestic services and global lounge business will continue as usual.
Following the devlopment, the stock hit its lower circuit limit at Rs 131 on BSE, taking its 3-month fall to 51 per cent. "We reiterate that contracts with our clients remain active and the discussions wit the clients on alternate customer value propositions are in progress. This disclosure is being made in the interest of transparency, governance, and investor awareness. Further updates, if any, will be duly intimated," Dreamfolks said.
To recall, Dreamfolks had in August received communications from suppliers, indicating their intention to discontinue certain services.
The suppliers included Adani Digital, Semolina Kitchens (effective September 15, 2025), and Encalm Hospitality (effective November 01, 2025). Dreamfolks had formally responded to the communications and had sought reconsideration of the continued supply of the services.
The discussions, it said, were undergoing between the company and its suppliers. "With respect to Encalm Hospitality, the Company filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (India), seeking interim injunctions at the Honourable High Court of Delhi. At present, services are continuing uninterrupted, and contracts with clients remain active. The company continues to engage with clients to safeguard relationships and is working on other customer value propositions," Dreamfolks said on August 29.
Shares of Dreamfolks Services Ltd tumbled 5 per cent in Wednesday's trade after the company said it has discontinued services of domestic airport lounges to its clients, effective Tuesday. Impact of the same is material, the company warned adding that th other domestic services and global lounge business will continue as usual.
Following the devlopment, the stock hit its lower circuit limit at Rs 131 on BSE, taking its 3-month fall to 51 per cent. "We reiterate that contracts with our clients remain active and the discussions wit the clients on alternate customer value propositions are in progress. This disclosure is being made in the interest of transparency, governance, and investor awareness. Further updates, if any, will be duly intimated," Dreamfolks said.
To recall, Dreamfolks had in August received communications from suppliers, indicating their intention to discontinue certain services.
The suppliers included Adani Digital, Semolina Kitchens (effective September 15, 2025), and Encalm Hospitality (effective November 01, 2025). Dreamfolks had formally responded to the communications and had sought reconsideration of the continued supply of the services.
The discussions, it said, were undergoing between the company and its suppliers. "With respect to Encalm Hospitality, the Company filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (India), seeking interim injunctions at the Honourable High Court of Delhi. At present, services are continuing uninterrupted, and contracts with clients remain active. The company continues to engage with clients to safeguard relationships and is working on other customer value propositions," Dreamfolks said on August 29.