Dreamfolks Services Ltd

Financial Performance

• Revenue for quarter ended 30 June 2026: INR 39 crores.
• Adjusted EBITDA: negative INR 16.4 crores; vs negative INR 14.4 crores last quarter.
• PAT: negative INR 13.8 crores; vs -13.0 crores prior quarter; -21.3 crores in Q1 FY26.
• Gross profit negative INR 0.9 crores due to upfront minimum guarantee payment.
• Net worth INR 300.4 crores; cash and cash equivalents INR 193.3 crores.
• Cash balance rose to INR 193.3 crores from INR 149 crores in prior quarter.
• Non-airport lounge share contributed ~33% of quarterly top line.

Operational Update

• Global lounge network: 1,100+ lounges; 70 new outlets added in the quarter.
• Railway lounges: 100% nationwide coverage; Ten11 Hospitality acquisition strengthened control.
• Golf: 80 outlets in India; 860 courses internationally.
• DF Club Membership program: early traction; memberships growing quarter-on-quarter.
• Diversification underway; non-airport services contributing to revenue growth.
• Expansion focus: global lounges, golf, and other services to broaden wallet share.

Balance Sheet and Liquidity

• Receivables collection improving; cash position strengthened reflectively.
• Promoter group has no plans to increase stake; focus remains on rebuilding business.

Q&A Highlights

• Railway lounge economics: capex varies by lounge size; average 2,000–14,000 sq ft.
• Railway lounges could be a ₹500 crore opportunity over 4–5 years; investment aligned with PM plans.
• ETT margins: similar to domestic lounges; no early margin improvement due to upfront advances.
• ESOP cost impact: ~INR 14 lakhs per year; minimal on overall cost base.
• Q1 revenue drop primarily due to war; international traffic down; India domestic offsetting partially.
• APAC adds: Singapore and Indonesia banks signed; go-live by month-end/early next month.

Outlook and Guidance

• Breakeven expected by next year; management affirmed path during Q&A.
• Incremental contribution from new services expected to help absorb fixed overhead and improve operating leverage as scale hits.
• If earlier ramp occurs, management will announce progression publicly.

Meeting Details

• Date and time: August 13, 2026 at 17:00 IST.
• Type: earnings conference call; group.
• Mode: audio recording; available on company website.
• Event/organiser: earnings conference call hosted by Dreamfolks Services Limited.

Participants

• Key company participants not listed in filing.

Purpose

• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026.

Additional Notes

• Audio recording available on company website.

Business overview

• Global travel and lifestyle experiences company; transforming from lounge aggregator to Benefits Technology platform.
• Global lounge network expanded to 1,100+; non-airport lounges ~33% of topline.

Operational highlights

• Launched programs across Global Lounges, Meet and Assist, Airport Transfers, and premium clubs.
• Global network expanded; railway and golf ecosystems scaling via Ten11 Hospitality.
• DF Club Membership shows steady initial growth.

Financial performance

• Revenue ₹390.1m; gross profit ₹-9.0m; Adjusted EBITDA ₹-163.7m; PAT ₹-138.3m.
• Cash ₹1,933m; net worth ₹3,004m; balance sheet remains strong despite expansion costs.
• Q1 FY27 performance reflects expansion costs; recovery expected as volumes build.

Capital structure & liquidity

• Cash balance supports growth; liquidity remains robust amid ongoing expansion.
• Debt levels disclosed; borrowings and lease liabilities detailed in balance sheet.

Strategic priorities & outlook

• Scale global network; expand railway lounges via Ten11 Hospitality.
• Redefine credit card benefits in India beyond legacy lounge proposition.
• Diversification to reduce reliance on airport lounges; DF Club as consumer channel.

Risks & mitigation

• Near-term margin pressure from upfront minimum guarantee commitments.
• Investments expected to recover as transaction volumes build.

Governance & leadership

• Liberatha Kallat is Chairperson and MD; outlines FY26 transformation.
• Leadership focus on transforming into Benefits Technology platform.

Financial highlights

• Standalone revenue from operations ₹371.55m; total income ₹410.16m for quarter ended 30-Jun-2026.
• Consolidated revenue from operations ₹390.11m; total income ₹427.27m.
• Standalone PAT ₹-135.55m; OCI ₹-3.97m; total comprehensive income ₹-139.52m.
• Consolidated PAT ₹-138.31m; PAT to owners ₹-136.65m.
• Standalone total expenses ₹590.21m; major costs: services ₹402.72m; payroll ₹108.86m.
• Consolidated total expenses ₹610.49m; services ₹395.23m; employee ₹123.57m.
• PBT stands at ₹-180.05m (standalone) and ₹-183.22m (consolidated).
• Deferred tax credit ₹-44.50m (standalone) and ₹-44.73m (consolidated).
• Standalone EPS ₹-2.54; Consolidated EPS ₹-2.57.

Audit & IBC highlights

• IBC petition by Travel Food Services Limited for ₹114.00m; management disputes.
• Provisions made; company states going concern not affected.
• Auditors note Emphasis of Matter on IBC; no material misstatement observed.

Governance updates

• Sunil Kulkarni reappointed Independent Director for five years from 21 Nov 2026, subject to shareholder approval.
• Lloyd Mathias appointed as Additional Independent Director from 14 Aug 2026 for three years.

Group structure & segments

• Subsidiaries include Golfklik Pvt Ltd, Dreamfolks Services Pte Ltd, Ten11 Hospitality Pvt Ltd.
• Associate: ETT Solutions DMCC.

Business model & segment note

• Single reportable segment: benefit management services via a proprietary platform.

Meeting Details

• 13 August 2026, 17:00 IST.
• Group earnings conference call conducted virtually.
• Event: Dreamfolks Services Limited Q1 FY27 Earnings Call.
• Key participants: MD (Chairperson), Executive Director & CTO, CFO, Chief Business Officer.
• Purpose: discuss Q1 FY27 unaudited results for quarter ended June 30, 2026.
• Presentation will be submitted to stock exchanges and posted on the company website.

Meeting Details

• Board meeting scheduled for August 13, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Submit unaudited results and Limited Review Reports to stock exchanges.

Other Notes

• Trading window closed from July 01, 2026, until 48 hours after UFR declaration.

Demat/Remat status

• No Demat/Remat requests were received for processing in the reporting quarter.
• There were no pending Demat/Remat requests from prior quarters.
• Certificate confirms compliance with Regulation 74(5) of SEBI DP Regulations.
• No exceptions or non-compliance noted for the period.

Postal ballot results

• Purpose: Ordinary resolution to approve material related party transaction with ETT Solutions DMCC.
• Resolution type: Ordinary; subject: related party transaction.
• Counterparty: ETT Solutions DMCC; nature: material related party transaction.
• Voting period: remote e-voting from Jun 04, 2026 to Jul 03, 2026.
• Notice date: May 29, 2026; cut-off date: May 29, 2026.
• Promoter group: no promoter interest disclosed.
• Outcome: Passed; 87.61% in favor (1,24,807 votes) vs 12.39% against (17,651).
• Material impact: enables related party transaction; terms not disclosed.

Board action: guarantee for Ten 11 overdraft

• Board approved Security and Corporate Guarantee for Ten 11 Hospitality's ₹2.50 crore overdraft with AU Small Finance Bank.
• Collateral includes a fixed deposit of ₹1 crore for an initial one-year period, auto-renewable.
• This constitutes a contingent liability with no immediate cash outflow expected.
• Guarantee commission to Ten 11 to be benchmarked at year-end.
• Company can recover amounts paid or liabilities under the guarantee per agreement.
• No promoter/group interest in the transaction.
• Impact on listed entity: contingent liability with no material impact on liquidity; FD utilization restricted temporarily.
• Borrower: Ten 11 Hospitality Private Limited (formerly Ten 11 Hospitality LLP).
• Lender: AU Small Finance Bank Ltd.
• Period: initial one-year term, with auto-renewal until loan tenure.