Dreamfolks Services Q4 Net Loss of ₹130.1 Million

The Board, based on the recommendation of the Audit Committee, approved the Audited Financial Results (Standalone and Consolidated) for the quarter and financial year ended March 31, 2026, pursuant to Regulation 33 of SEBI LODR Regulations.
The Board took on record the un-modified Statutory Audit Report with Emphasis of Matter on the AFRs as submitted by M/s. S S Kothari Mehta & Co. LLP, Chartered Accountants.
A declaration signed by the Chief Financial Officer pursuant to Regulation 33(3)(d) of SEBI LODR Regulations was submitted.
The Company will publish a QR Code in newspapers in compliance with Regulation 47 of SEBI LODR Regulations for accessing the AFRs.

Based on the recommendation of the Audit Committee, the Board approved the re-appointment of M/s. S S Kothari Mehta & Co. LLP, Chartered Accountants (FRN 000756N/N500441) as Statutory Auditor for a second consecutive term of five years.
The term would be from the conclusion of the 18th Annual General Meeting until the conclusion of the 23rd AGM, subject to shareholder approval at the ensuing AGM.
Relevant information pursuant to Regulation 30 read with Schedule III to SEBI LODR Regulations and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, was provided.

Revenue from operations: ₹510.65
Other income: ₹69.11
Total income: ₹579.76
Total expenses: ₹759.53
Loss before tax: ₹(179.77)
Tax expense: ₹(47.15) [Current tax: ₹(39.31), Tax expense related to earlier period: ₹(11.23), Deferred tax credit: ₹3.39]
Loss after tax: ₹(132.62)
Other comprehensive income: ₹1.28
Total comprehensive loss: ₹(131.34)
Paid-up equity share capital: ₹106.54 million
Face value per share: ₹2.00
Earnings per share (not annualized): Not provided in disclosure

Revenue from operations: ₹6,580.96
Other income: ₹195.50
Total income: ₹6,776.46
Total expenses: ₹6,588.74
Profit before tax: ₹187.72
Tax expense: ₹44.81 [Current tax: ₹58.74, Tax expense related to earlier period: ₹(11.23), Deferred tax credit: ₹(2.70)]
Profit after tax: ₹142.91
Other comprehensive loss: ₹(0.91)
Total comprehensive income: ₹142.00
Other equity: ₹3,114.98 million

Revenue from operations: ₹526.39
Other income: ₹67.45
Total income: ₹593.84
Total expenses: ₹773.18
Loss before tax: ₹(179.34)
Tax expense: ₹(49.24) [Current tax: ₹(41.40), Tax expense related to earlier period: ₹(11.23), Deferred tax credit: ₹3.39]
Loss after tax: ₹(130.10)
Other comprehensive loss: ₹(2.78)
Total comprehensive loss: ₹(132.88)
Loss attributable to owners: ₹(130.87)
Loss attributable to non-controlling interest: ₹0.77
Basic EPS: ₹(2.46)
Diluted EPS: ₹(2.44)

Revenue from operations: ₹6,605.59
Other income: ₹190.84
Total income: ₹6,796.43
Total expenses: ₹6,637.43
Profit before tax: ₹159.00
Tax expense: ₹42.77 [Current tax: ₹56.70, Tax expense related to earlier period: ₹(11.23), Deferred tax credit: ₹(2.70)]
Profit after tax: ₹116.23
Other comprehensive loss: ₹(8.37)
Total comprehensive income: ₹107.86
Profit attributable to owners: ₹115.58
Profit attributable to non-controlling interest: ₹0.65
Basic EPS: ₹2.17
Diluted EPS: ₹2.16
Other equity: ₹3,031.26 million

The statutory auditors, S S Kothari Mehta & Co. LLP, issued an unmodified audit report with an emphasis of matter regarding:

A petition filed on May 15, 2026 (subsequent to balance sheet date) under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Travel Food Services Limited, an operational creditor.
The petition was filed before the National Company Law Tribunal, New Delhi Branch, alleging default in payment and seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the Company for an amount aggregating to approximately ₹114.00 million.
Management has represented that the Company strongly disputes the claims and has taken appropriate legal steps.
Appropriate provisions have been made in the books of account.
The matter is not indicative of any financial stress affecting the going concern status.
Hearing for the matter was scheduled for May 29, 2026.

The consolidated financial results include three subsidiaries: Golfklik Private Limited, Dreamfolks Services Pte Limited, and Ten 11 Hospitality LLP.
The Company acquired 50.01% equity interest in Ten 11 Hospitality LLP for ₹114.54 million, making it a subsidiary effective November 10, 2025.
Results of Ten 11 Hospitality LLP have been consolidated from the acquisition date.

The Company carried investment in Golfklik Private Limited amounting to ₹15 million.
Indicators of impairment were identified including continuous losses and deterioration in financial performance.
Impairment loss of ₹8.87 million recognized towards goodwill in consolidated financial statements.
Impairment of investment amounting to ₹14.71 million recognized in standalone financial statements.

The Company entered into definitive arrangements on December 01, 2025 to acquire a controlling stake of 60.24% in ETT Solutions DMCC, UAE through secondary purchase and primary subscription.
Total proposed investment: approximately ₹360 million (USD ~4 million).
During the year, paid ₹123.11 million towards secondary purchase of shares.
First phase completed with share transfer registered with Dubai Multi Commodities Centre Authority on April 22, 2026.
Company's current shareholding in ETT stands at 34%.
Primary subscription phase is under process.
Financials of ETT not consolidated pending transfer of control.

Government of India consolidated multiple legislations into four Labour Codes effective November 21, 2025.
Impact of new labour codes has been taken in financial results, calculated as not material.