Dreamfolks Services reports strong double-digit growth in Q2 FY25
Dreamfolks Services Limited, India’s largest travel and lifestyle service aggregator, has released an impressive set of financial results for the second quarter and first half of the fiscal year ending September 30, 2024. Reporting a 12.2% year-on-year revenue growth for Q2 FY25, Dreamfolks has reinforced its position as a leader in the sector by delivering robust financial performance and diversifying its service portfolio.
Dreamfolks’ Revenue and Profit Surge Amid Expansion Efforts
Gurugram-based Dreamfolks Services reported a revenue of INR 3,169 million in Q2 FY25, showing a notable growth from INR 2,825 million in Q2 FY24. Despite a slight decline in profit after tax (PAT) from INR 177 million to INR 160 million year-over-year, the first half of FY25 saw the PAT rise to INR 332 million, marking a steady 8.3% increase from the INR 306 million recorded in the same period last year.
The company attributes its continued success to strategic initiatives that have been ongoing throughout the recent quarters. These initiatives have significantly strengthened Dreamfolks’ service offerings beyond India’s airport lounges, including expanding into services such as golf experiences and railway lounges, contributing to 6.7% of revenue in Q2 FY25, up from 5.5% in Q2 FY24.
Operational Growth & Expansion of Client Portfolio
Dreamfolks’ management has emphasized the strategic growth seen in Q2 FY25, particularly with the addition of new lounges and an expanded client portfolio. Ms. Liberatha Kallat, Chairperson and Managing Director, remarked that Dreamfolks’ double-digit growth reflects the success of their strategic investments and enhancements. In her words, the continuous expansion across services like railway lounges and golf has started yielding substantial returns, marking an important milestone for Dreamfolks in diversifying its service streams.
In Q2 FY25 alone, Dreamfolks added seven new enterprises to its client base, affirming its commitment to enhancing customer experience and expanding partnerships. The company also broadened its global footprint with the addition of 38 new airport lounges, many of which are located across Asia, thereby strengthening its presence in the international market. In India, Dreamfolks now manages 74 lounges, covering 100% of airport lounge access.
The Road Ahead: Emphasizing Technology and Customer Acquisition
The company’s focus on strategic client acquisition, service diversification, and technological integration appears to be central to its growth roadmap. Dreamfolks aims to increase its wallet share with existing clients while pursuing further geographic expansion.
Ms. Kallat stressed that the investment in technology and operational excellence is expected to provide sustainable profitability for Dreamfolks. She added that with the current strong momentum seen in allied industries, the company remains optimistic about the continued upward trend in their financial metrics. Dreamfolks’ business model, characterized by an extensive network of lounges and customized offerings for clients, positions the company favorably for long-term sustained growth.
Key Financial Metrics for Q2 & H1 FY25
For the second quarter of FY25, Dreamfolks achieved a Gross Profit of INR 392 million, an improvement of 11.7% year-over-year. The company’s Adjusted EBITDA was INR 255 million, and while this reflected a marginal decrease from INR 266 million in Q2 FY24, the figure still portrays a strong operational base. Meanwhile, the revenue for the first half of FY25 reached INR 6,377 million, demonstrating a 16.2% rise from H1 FY24.
Dreamfolks attributes its financial resilience to strategic partnerships with major banks, card networks, and corporations. The company also holds a remarkable market share of over 90% in the domestic lounge access segment for India-issued credit and debit card programs, according to Frost & Sullivan.
The upcoming quarters are expected to witness continued focus on enhancing lounge experiences and diversifying the company’s range of services offered through proprietary technology that supports partners, including major credit card issuers, banks, and airlines.
Dreamfolks’ commitment to delivering exceptional customer experiences while leveraging its extensive service ecosystem has positioned it well to tap into emerging opportunities in the travel and lifestyle services market.
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