Dreamfolks Services Limited (DREAMFOLKS) AI Stock Analysis

• Market Cap: ₹4.90B
• Dividend Yield: 1.8%
• Average Volume (3M): 51.86K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.64
• Revenue Growth: -1.24%
• EPS Growth: -9.83%
• Country: IN
• Employees: 83
• Sector: Services
• Sector Strength: N/A
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 2.11
• Shares Outstanding: 53,269,863
• 10 Day Avg. Volume: 89,125
• 30 Day Avg. Volume: 51,864
• PEG Ratio: -3.54
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 22.11
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ₹101.00 ▼(-5.43% Downside)

The score is driven by strong financial performance (growth, profitability, solid balance sheet, and improving free cash flow) and attractive valuation (low P/E with dividend support). This is tempered by weak technicals, with the price below key moving averages and negative momentum despite oversold readings.

Positive Factors

Sustained Revenue Scale

Meaningful multi-year revenue expansion demonstrates successful scaling of the aggregator model and broader partner adoption. Sustained top-line growth supports network effects, stronger bargaining with lounges/issuers, and the capacity to invest in product and distribution over the next 2–6 months.

Healthy Balance Sheet

Low leverage and a solid equity base provide financial resilience and strategic optionality. This strength underpins the company's ability to fund partnership rollouts, absorb demand shocks in travel, and pursue selective investments without eroding liquidity over the medium term.

Improving Cash Generation

Positive and improving free cash flow indicates operations are converting revenue into durable cash, enabling reinvestment, working-capital coverage, and potential shareholder returns. Strong cash conversion reduces refinancing risk and supports sustainable growth plans.

Negative Factors

Recent Revenue Soft Patch

A recent decline in reported revenue growth suggests potential near-term saturation or volatility in transaction volumes. For a volume-linked model, even small drops can persistently pressure earnings and weaken growth visibility until partner volumes or distribution expand again.

Profitability Variability

Fluctuating net income signals underlying margin sensitivity—likely from variable partner economics, cost mix, or one-off items. Persistent earning variability reduces forecasting reliability and could constrain strategic investments if volatility continues.

Dependence on Partner Volume and Terms

Revenue tied to partner-driven transactions creates structural exposure to changes in card issuer programs, airline deals, or lounge supply. Contract renegotiations or reduced partner distribution could depress volumes and revenues materially over several months.

Dreamfolks Services Limited Business Overview & Revenue Model

Company Description

Dreamfolks Services Limited provides airport service in India and internationally. The company offers lounge access, food and beverage, spa, meet and assist, airport transfer, transit hotels and nap room access, and baggage transfer services. Dreamfolks Services Limited was incorporated in 2008 and is based in Gurugram, India.

How the Company Makes Money

DREAMFOLKS generates revenue primarily through its service offerings to airlines, travel agencies, and corporate clients. The company charges fees for access to its airport lounges, which are often bundled into travel packages or sold as standalone products. Additionally, revenue is derived from partnerships with airlines and travel service providers, where DREAMFOLKS receives a commission or a fee for facilitating access to its services. The company may also explore ancillary services such as baggage handling and premium customer services, further diversifying its revenue streams.

Dreamfolks Services Limited Financial Statement Overview

Summary

Strong revenue growth and solid profitability support a high score, backed by a healthy balance sheet with low leverage and improving free cash flow. The main offsets are some variability in net income and investing cash flows.

Income Statement

Dreamfolks Services Limited has demonstrated strong revenue growth over the past few years, with a notable increase in Total Revenue from 2.82 billion in 2022 to 13 billion in 2025. The company maintains impressive profitability with a consistently high gross profit margin and positive net profit margin. However, net income fluctuated slightly, indicating some variability in profitability.

Balance Sheet

The company's balance sheet reflects a healthy financial position, with a strong equity base and manageable debt levels. The Debt-to-Equity Ratio is low, suggesting limited leverage risk. Additionally, the Equity Ratio indicates a solid proportion of equity financing, enhancing financial stability.

Cash Flow

Dreamfolks has achieved significant improvement in cash flow generation, with Free Cash Flow turning positive and growing steadily. The Operating Cash Flow to Net Income Ratio indicates efficient cash generation from operations. However, capital expenditures and variability in cash flows from investing activities suggest potential areas for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.24B	12.92B	11.35B	7.73B	2.82B	1.06B
Gross Profit	1.14B	1.04B	1.08B	1.28B	452.32M	180.92M
EBITDA	1.01B	973.05M	972.43M	1.02B	238.63M	20.58M
Net Income	694.38M	654.29M	690.04M	725.34M	162.52M	-14.50M
Balance Sheet
Total Assets	0.00	4.99B	4.19B	3.23B	1.69B	1.23B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.48B	722.66M	633.77M	145.58M	100.00M
Total Debt	0.00	106.32M	61.08M	72.99M	82.51M	94.62M
Total Liabilities	-3.01B	1.98B	1.82B	1.66B	865.18M	582.03M
Stockholders Equity	3.01B	3.01B	2.36B	1.57B	821.65M	642.99M
Cash Flow
Free Cash Flow	0.00	563.31M	204.15M	485.45M	-194.33M	-296.49M
Operating Cash Flow	0.00	574.16M	219.23M	496.12M	-121.36M	62.55M
Investing Cash Flow	0.00	-459.00M	-149.58M	-302.03M	58.74M	-268.54M
Financing Cash Flow	0.00	-82.26M	24.68M	-20.61M	-26.42M	-15.36M

Dreamfolks Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DREAMFOLKS, the sentiment is Negative. The current price of 106.8 is above the 20-day moving average (MA) of 98.24, below the 50-day MA of 107.79, and below the 200-day MA of 160.07, indicating a bearish trend. The MACD of -5.03 indicates Positive momentum. The RSI at 27.52 is Positive, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DREAMFOLKS.

Dreamfolks Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DREAMFOLKS	74 Outperform	₹4.90B	7.58	―	1.80%	-1.24%	-9.83%
SALASAR	69 Neutral	₹13.90B	42.77	―	―	27.20%	-45.92%
SATIN	63 Neutral	₹17.45B	8.77	―	―	11.09%	-66.54%
ROHLTD	61 Neutral	₹9.84B	21.32	―	0.61%	10.77%	-4.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
VAKRANGEE	54 Neutral	₹7.53B	63.94	―	0.62%	17.25%	51.76%
SNOWMAN	50 Neutral	₹6.48B	222.11	―	2.44%	9.91%	-66.86%