Dreamfolks Services, India’s leading airport lounge aggregator, is facing a major blow as Adani Digital, Semolina Kitchens, and Encalm Hospitality have announced the discontinuation of their lounge services, as per news reports.
This development is likely to materially affect the company’s operations and financial results. Despite this, Dreamfolks has assured that services remain uninterrupted for now, while it accelerates its global expansion strategy and diversification of offerings.
As per news reports, the suspension of services by Adani Digital and Semolina Kitchens will come into effect on September 15, 2025, while Encalm Hospitality will end its service supply from November 1, 2025.
As per news reports, addressing the dispute with Encalm, the company stated, “With respect to Encalm Hospitality, the Company filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 (India), seeking interim injunctions at the Honourable High Court of Delhi.”
Dreamfolks acknowledged that these moves may have a material impact. “In the event of discontinuation of airport lounge services by above named suppliers, the company may experience a material impact on its operations and financial performance,” it said. However, the company also clarified that contracts remain active and services continue uninterrupted as of now.
As per news reports, Dreamfolks is recalibrating its business model by prioritising global lounge networks and expanding customer value propositions. “In response to these developments, the Company has strategically accelerated its focus on global lounge business while actively repositioning towards diversified and sustainable offerings, thereby ensuring long-term value creation for clients and stakeholders,” it added.
The challenges for Dreamfolks began when airport operators in India started directly offering lounge access to passengers. Earlier in July, the company had already closed select programs with Axis Bank and ICICI Bank.
Read More: Adani Group Records Strong Q1 FY26 Performance with EBITDA Crossing ₹90,000 Crore!
As of August 26, 2025, Dreamfolks Services share price closed at ₹141.00 per share, reflecting a surge of 3.24% from the previous closing price.
The exit of Adani Digital and other partners underscores the competitive and shifting landscape of India’s airport lounge industry. While Dreamfolks faces near-term pressures on its operations and revenues, its pivot towards global markets and diversified services may be the path forward to safeguard long-term growth.
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Published on: Aug 30, 2025, 1:32 PM IST
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