This document is a transcript of the Q2 & H1 FY27 Earnings Conference Call for Dreamfolks Services Limited, submitted as a regulatory filing in compliance with SEBI LODR Regulations, specifically Regulation 30 read with Para A of Part A of Schedule III.

Nature of Disclosure and Financial Performance

The call was hosted on November 03, 2026, following the Board of Directors' meeting that approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half year ended September 30, 2026.

Q2 FY27 Financials:

  • Revenue stood at ₹31.1 crore, a decrease from ₹39.0 crore in Q1 FY27 and ₹205.5 crore in Q2 FY26.
  • Adjusted EBITDA was negative ₹8.8 crore, an improvement from negative ₹16.4 crore in Q1 FY27.
  • Loss After Tax narrowed to negative ₹10.7 crore from negative ₹13.8 crore in the previous quarter.

The sequential improvement in profitability was partly attributed to the absence of a one-time upfront minimum guarantee payment made in Q1 to support global lounge business expansion.

H1 FY27 Financials:

  • Revenue for the first half was ₹70.1 crore, compared to ₹554.5 crore in H1 FY26.
  • Adjusted EBITDA was negative ₹25.2 crore.
  • Profit After Tax was negative ₹24.6 crore.
  • A positive development was a return to a positive Gross Profit, with the margin for H1 FY27 at 8.7%.

Liquidity and Capital Position (as of September 30, 2026):

  • Bank balances and liquid investments stood at ₹187.8 crore, increased from ₹148.9 crore as of March 31, 2026.
  • Net Worth was ₹290.1 crore, down from ₹313.8 crore at the end of the last fiscal year.

The company stated it manages liquidity prudently, aligning investment pace with business development.

Strategic and Operational Highlights

Business Diversification: Non-airport lounge services contributed more than one-third of the Q2 FY27 topline. This diversified portfolio includes Golf, Railway lounges, and lifestyle services like 'Coffee BOGO' and members-only club access.

New Partnerships and Launches:

  • Flight Cancellation for Any Reason: A service launched in partnership with Mastercard.
  • Wellness Card: A partnership with Elixir for a credit card where Dreamfolks powers the premium spa benefits.
  • Prepaid Card: A partnership with The Card Company (an RBI-licensed PPI issuer) for a premium prepaid metal card on the RuPay network.

Expansion of Dreamfolks Club:

  • The DF Club Membership is now live on the loyalty platforms of multiple major banks, creating a new distribution channel.
  • The company launched 'DreamFolks Club Nagavalli Wilderness Estate,' a private club spread across approximately 30 acres on the Odisha–Andhra Pradesh border. The estate includes a 25-acre golf course and 37 cottages (20 luxury, 17 eco).

Network Expansion:

  • The global lounge network exceeds 1,100 lounges, with a focus on converting this into volumes, particularly in South-East Asia.
  • The railway lounge business expanded with the addition of a new lounge at Nashik. The company, through its subsidiary Ten11 Hospitality, owns and operates railway lounges in Chennai, Mumbai, and Vadodara and is evaluating further expansion opportunities in this segment.

Forward-Looking Priorities

Management's stated priorities for the rest of FY27 are to:

  • Deepen distribution and adoption of recently launched services.
  • Drive greater programme activity across the global network.
  • Scale the railway business through Ten11.
  • Expand lifestyle offerings through banking and loyalty partners.
  • Continue investing in technology and operating capabilities.
  • Maintain a focus on execution, improving contribution, revenue absorption, and disciplined capital allocation.