Shares of Dreamfolks Services Ltd are trading flat after touching a day’s high of Rs 144.90 on 5th September, following the company’s announcement of another contract termination by one of its clients within a week.

Travel Food Services (TFS) has decided to end its extended lounge access agreement with Dreamfolks Services from 15th September, 2025. The deal had originally been signed on 1st July, 2024, with services running until 31st March, 2025, but was extended beyond that.

TFS said it tried to re-negotiate terms with Dreamfolks but failed, and has now chosen to work directly with banks and networks through its subsidiary Eliteassist Technology. The company added that this shift will not impact its business operations.

This development follows announcements made on 29th August, when Adani Digital and Semolina Kitchens said they would discontinue certain services from 15th September, while Encalm Hospitality set 1st November as its cut-off date. Dreamfolks has responded to these suppliers, sought reconsideration, and filed a petition against Encalm in the Delhi High Court.

Dreamfolks warned that discontinuing services could have a material impact on operations and financial performance. Still, it said it is focusing on expanding its global lounge business and diversifying into new offerings to ensure long-term value.

Earlier, Dreamfolks’ CEO had alleged that large airport operators were pressuring clients to cut ties unless they dealt directly with them, adding that the company does not expect regulatory backing in this matter.

At 11:03 AM, the shares of Dreamfolks were trading 1.16% higher at Rs 141 on NSE.

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