Dreamfolks Services shares tank 75% in a year; stock down 83% in two years

Shares of Dreamfolks Services continue to bleed as the stock tanked another 5 per cent, locked in the seller's circuit, and extended its fall to 75 per cent in a year. The stock has been in troubled on the back of negative business updates, which has been adding to the pressure on the counter.

Shares of Dreamfolks Services fell 5 per cent, hitting the lower circuit limit, to Rs 131 on Wednesday, with its market capitalization slipping below Rs 700 crore mark. The stock has cracked 75 per cent from its 52-week high at Rs 518.15, hit a year ago. The stock has tumbled over 83 per cent from its all time high around Rs 780.80 hit in July 2023.

Its total market capitalization has plunged more than Rs 3,460 crore from Rs 4,159.31 crore at its peak to Rs 697.84 crore as of today. Promoters own 65.72 per cent stake in the company, while public shareholders own 34.28 per cent in the company as of June 30, 2025.

Dreamfolks Services has launched its IPO in August 2023, when the company raised a total of Rs 562.10 crore, bselling its shares for Rs 326 apeice. The company then commanded a market capitalization of more than 1,700 crore and has wiped out nearly 60 per cent of valuations since then.

Only one mutual fund scheme, Motilal Oswal Focused Fund, owns 16,48,309 equity shares, 3.09 per cent stake in the company, as of June 2025 quarter. Only one retail investor owned 1,50,000 equity shares, or 0.28 per cent stake, while more than 1.13 lakh retail investors own 1.38 crore equity shares or 25.94 per cent stake as of the given date.

"The services of domestic airport lounges have been discontinued to our clients, effective today. Impact of the same is material. The other domestic services and global lounge business will continue as usual," said Dreamfolks in an exchange filing with the bourses on Tuesday, September 16, 2025.

"We reiterate that contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress," it added in the filing. "This disclosure is being made in the interest of transparency, governance, and investor awareness. Further updates, if any, will be duly intimated."

The move comes just days after Travel Food Services terminated its contract with DreamFolks, which had been acting as one of the aggregators for banks and networks to provide lounge access across several of its lounges. This followed another announcement on August 29, when Adani Digital, Semolina Kitchen and Encalm Hospitality indicated their intentions to discontinue certain services.

The company reported net sales of Rs 348.95 crore in June 2025, marking an 8.77 per cent year-on-year basis, while net profit increased 20.24 per cent year-on-year to Rs 22.19 crore. Meanwhile, Ebitda stood at Rs 30.43 crore in June 2025, up 17.22 per cent on a yearly basis.