Dreamfolks Services, India's leading airport service aggregator, is facing turbulent times as it exits the domestic airport lounge business, leading to a significant drop in its share price. On September 17, 2025, the company's shares hit a 5% lower circuit at Rs 131 on the BSE in early trading, following the announcement of its immediate exit from the domestic airport lounge sector.

The company informed exchanges that access to domestic airport lounges for its clients has been discontinued effective today and acknowledged that this development is material. Dreamfolks, however, clarified that other domestic services and its global lounge business will continue without disruption.

This decision follows the termination and discontinuation of agreements with key partners such as Travel Food Services, Adani Digital, Semolina Kitchens, and Encalm Hospitality in August. Travel Food Services had announced the termination of its extended contract to provide lounge access services to Dreamfolks customers just two weeks prior, effective September 15, 2025. Dreamfolks had also ceased certain associations with Axis Bank and ICICI Bank for lounge services in July. Major airport operators, including Adani Airports and GMR Airports, are now offering their own platforms, further squeezing out intermediaries like Dreamfolks.

The exit from the domestic airport lounge business is expected to significantly impact Dreamfolks' core business operations. According to ET Now Swadesh, the domestic airport lounge segment generates almost 80% of Dreamfolks' revenue. The company's share price has already plummeted, falling approximately 66% year-to-date.

Dreamfolks has assured that contracts with clients remain active and that discussions on alternate customer value propositions are in progress. The company is now expected to pivot towards its global offerings.

This move is expected to disrupt lounge access for credit card users of select banks who rely on complimentary lounge access as a key perk. While cardholders of major banks may not be significantly affected, customers of smaller banks may face challenges until their banks establish new partnerships. ICICI Bank and Axis Bank, two of the largest issuers of credit cards with lounge access perks, have already severed ties with Dreamfolks.

Despite the bearish market reaction, data on Stocktwits indicates that retail sentiment has remained "bullish," accompanied by "extremely heavy" message volumes over the past week. On September 17, 2025, Dreamfolks share price traded 5% higher at Rs 131. Dreamfolks share price reached a 52-week high of Rs 518.15, and a 52-week low of Rs 122.25.