The shares of India’s largest airport service aggregator platform plunged by over 14 percent on Thursday following the news of major banks closing their ties with the company. In this article, we will discuss more about this issue.\n\nWith a market capitalization of Rs 1,247 crores, the shares of Dreamfolks Services Ltd are currently trading at Rs 234 per share, down by 55.17 percent from its 52-week high of Rs 522 per share. In the last one year, the stock has delivered a negative return of 51 percent.\n\nAccording to sources, prominent clients such as ICICI Bank, Axis Bank, and Mastercard are expected to terminate their agreement with the country’s largest airport service aggregator and are already having discussions for direct contracts with lounge operators. \n\nTheir decision followed an extreme service disruption in September 2024, which prevented access to lounges for 49 lounges at 34 airports, leaving thousands of passengers stranded. While this was rectified in less than 24 hours, the issue produced a furious backlash from prominent airport operators such as Adani, GMR, and TFS, who claimed the aggregator breached their service agreements and some even announced that they may seek legal action against the company. \n\nAlthough the incident caused major damage to client confidence, the aggregator still enjoys a dominant 90% of the market share in airport lounge access for Indian domestic travel.\n\nThe company reported a revenue of Rs 1,292 crore in FY25, up by 13.84 percent from its FY24 revenue of Rs 1,135 crores. However, it reported a net profit decline of 5.80 percent to Rs 65 crore in FY25 from Rs 69 crores in FY24.\n\nIt delivered an ROE and ROCE of 24.21 percent and 33.76 percent respectively, and is currently trading at a P/E of 21.59x as compared to its industry average of 21.55x.\n\nDreamFolks Services Ltd is an Indian airport services aggregator that provides a tech platform for banks, airlines, and travel companies to offer airport services to their travelers.\n\nDreamFolks connects global card networks and airport service providers—like lounge operators, transport, spa, food, and hotels—all onto a single platform. In addition to the traditional lounges, DreamFolks has nap rooms, curated meals, and other airport services at select airports of Bengaluru, Cochin, and Mumbai.

Stock crashes 14% after ICICI, Axis and Mastercard are expected to terminate their agreement

India’s largest airport service aggregator, DreamFolks Services Ltd, saw its shares plunge 14% following reports that major banks ICICI Bank, Axis Bank, and Mastercard plan to terminate their agreements with the company. The stock fell 55.17% from its 52-week high, with a 51% annual loss. The crisis followed a September 2024 service disruption that left thousands of passengers stranded, prompting backlash from airport operators like Adani, GMR, and TFS. The company reported FY25 revenue of Rs 1,292 crore (up 13.84%) and a net profit decline of 5.80% to Rs 65 crore, despite maintaining 90% market share in airport lounge access.