Dreamfolks Services Ltd (NSE: DREAMFOLKS) Q1 2026 Earnings Call dated Aug. 07, 2025
Corporate Participants:
Unidentified Speaker
Liberatha Peter Kallat — Chairperson and Managing Director
Balaji Srinivasan — Chief Technology Officer and Executive Director
Shekhar Sood — Chief Financial Officer
Sandeep Sonawane — Chief Business Officer
Analysts:
Unidentified Participant
Narsik — Analyst
Shreyans Mehta — Analyst
Neerav Shah — Analyst
Vishal Mehta — Analyst
Nilesh Doshi — Analyst
Navin Koushik — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to Dreamfolk Services Limited Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. Before we begin, let me remind you that this discussion may contain forward looking statements and may involve known or unknown risk uncertainties and other factors. It may be viewed in conjunction with the Company’s business risk that could cause future results, performance or achievements to differ significantly from what is being expressed or implied by such forward looking statements.
Today on this call we have with us Ms. Libretta Khilad, Chairperson and Managing Director, Mr. Balaji Srinivasan, Executive Director and Chief Technological Officer, Mr. Shekhar Sood, Chief Financial Officer and Mr. Sandeep Sonavne, Chief Business Officer. I now hand the conference over to Ms. Libretta. Thank you and over to you Ma’. Am.
Liberatha Peter Kallat — Chairperson and Managing Director
Good evening everyone and thank you for joining us for Dreamfork Services Quarter 1 FY26. We appreciate your continued trust as we share our Q1 FY26 results, strategic priorities, Industry Contest and our long term vision for sustainable value creation. For the quarter ended June 30, 2025, Greenforce delivered a steady set of results reflecting a focus on execution, diversification and operational efficiency. Our revenue for the quarter stood at 349 crores, showing year on year growth of 8.8%. Adjusted EBITDA came in at 30 crores with margin of 8.7%, showcasing an increase of 18.7% year on year and PAT at 21 crores.
Our non ground services also continue to grow, validating our strategy of evolving from a lounge aggregator into a broader travel and life and experience platform. Dreamforce was built on a simple principle democratized aspirational services and made them accessible to not few but many, enriching every stage of the traveler’s journey. Our investment in service diversification, technological enhancements and long term partnerships remain intact. The industry landscape is continuously evolving. Although in the past the private airport operators claimed to reduce reliance on facilitators of lounge access, the dynamic has emerged. They have essentially become lounge aggregators themselves at all the airports across India.
In response to these shifts, Dreamforce is actively accelerating its efforts to expand other services. We project that services beyond our lounge offerings will contribute approximately one third of our total revenue quicker than we expected Now I would also like to address some recent developments. While we have seen few banks shift their partnership and others may be facing pleasure to do the same, I want to emphasize that our agreements with all clients remain firmly in place. We are working closely with them to integrate our new services offering beyond Airport Lounges a strategic initiative and that we believe will yield significant results over time.
Our focus is on developing new packages and redefining our customer value proposition to ultimately enhance to end consumer experience. Our major focus now is on further expanding our presence in Southeast Asia and Middle east countries by forming strategic partnerships with key players in those locations and to continue to reduce dependency on one service by scaling and innovative offerings such as call railway lounges, wellness packages, coffee at malls and access to green and social clubs all designed to serve the modern traveler and urban customer beyond Airport Touch quarantine. With the addition of new services, we are also currently working on developing our technology more agile to cater to the evolving needs of our clients.
We will continue to strategically diversify our portfolio by focusing on two key areas. First, we will continue to build and expand our service beyond the airport ecosystem. Simultaneously, we are committed to broadening our client base to include a wide range of partners across enterprises, ensuring a more resilient and dynamic business model for the future. On the enterprise front, we are building sticky high retention revenue streams. In the last one year we have onboarded over 40 new enterprise clients in the travel and lifestyle industry. We are deploying bundled offerings including social club, coffee at mall, travel, dining and other wellness and entertainment services to drive workforce engagement and client loyalty.
These services tap into growing demand for micro conveniences and premium experiences in everyday spaces beyond metro cities where discretionary spending is rising. By expanding our reach into malls, rail hubs and transit clusters, we are extending our brand promise from travel only to lifestyle mobility while staying scalable and margin positive. Our geographical deepening continues to be a key strategic lever. Domestically, we are expanding our presence across India with increasing penetration in non metro cities where infrastructure growth and aspirational travel are accelerating. Globally, we serve travelers in 100 plus countries with 3,000 service touch points including luxes business services golf offering across key global cities.
This step provides not just REIT but also resilience, buffering against region specific disruption while capturing demand across multiple ecosystems. Now coming to the industry dynamics, India’s credit and charge card market has seen strong momentum, growing by nearly 28% in 2023, a further 15.3% in 2024 reaching 22.3 trillion. The total number of credit cards in Circulation stood around 111 million by June 2025, an approximately 7% year on year increase. The market is projected to grow by about 14% in 2025, reaching 25.4 trillion in annual spend. Looking ahead, Global Data forecast a compound annual growth rate of roughly 11.5% between 2025 and 2029, pushing the credit avatars market to 39.3 trillion by 2029.
With a dominant distribution base through car network, enterprise bundles and mobility focused integration, Dreamforce is positioned as a facilitator of this modern lifestyle building aspiration with accessibility across every transit touchpoint. At the end we are building a sustainable tech enabled enterprise grounded in service excellence and powered by long term partnerships. We are not just enabling travel, we are reshaping how modern Indian and global citizen experience moment, well being and leisure in a fast changing world. We are excited to shape the future of premium travel experience together. Thank you for joining us in this journey. Over to you Sandeep.
Sandeep Sonawane — Chief Business Officer
Thank you Libita as we reflect on the quarter 1st of FY26, I am pleased to report a steady and purposeful start of the year. Despite the dynamic external environment as you are aware of, we stayed focused on execution delivering value through disciplined growth, strong partnerships and differentiated services. Our enduring relationship with our clients remains our greatest strength. We are actively deepening these partnerships by collaborating to co create new service models that extend beyond traditional airport lounge access. We look forward to sharing more details on this front soon. We have seen we have been developing a suit of new cost efficient services that deliver enhanced value for both and clients as well as customers.
This strategic focus allows even low end cards offer meaningful benefits, creating a more inclusive and robust ecosystem. Furthermore, we are seeing great traction with our social club offerings which are being adopted by various clients including both enterprise and banks. We are actively expanding our program to include new benefits like coffee at malls and travel dining and are also collaborating with hotels to create unique offerings for our clients. This quarter we remain committed to our strategies by onboarding new enterprise clients and expanding consumer touch points. On the banking side, we launched several new programs including partnerships with banks of four new programs.
These programs reflect the continued confidence our partner places in our platform to deliver scalable meaningful experiences. It also deepens our presence in financial services and reinforces the relevance of our access led value proposition. Our enterprise segment gained further traction this quarter. We onboarded clients operating in travel and lifestyle each highlighting the growth demand for bundled lifestyle driven benefits that enhance corporate offerings. Our expanding base of enterprise partnerships further strengthens our role as a value Enabler across diverse B2B2C use cases, we continue to build a strong and expansive network. Our global footprint also expanded now and we offer almost access to 850 lounges worldwide, ensuring seamless travel experiences for our customers wherever they go.
In lifestyle access services, our golf portfolio showed strong momentum. We have added 60 new international touchpoints, expanding our global network to 800 plus clubs and increasing our India presence to 64 clubs. Our new premium services like coffee at malls at almost more than 250 outlets. And access to social clubs across 3,000. Plus clubs across the globe is increasingly becoming popular. This quarter reflects our focused approach on shaping long term growth to three strategic levers. First, we are actively diversifying beyond lounge into offering like coffee at mall, spa, wellness, access to social clubs, calls, so on and so forth. Second, we continue to grow our enterprise portfolio by delivering curated programs tailored to evolving client needs, especially in workforce, engagement and wellness. And of course third, we are deepening our geographic footprint across India’s non metro cities as well as international market, broadening our reach while balancing exposure. These levers which are diversification, enterprise expansion and geographic scale form the foundation of a forward strategy.
They reduce category dependence and of course opens new pathways for sustainable high margin growth. In summary, Q1FY26 has been a consistent and a forward looking quarter as we continue to execute with clarity and discipline. We remain confident in the strength of our platform, the depth of our partnerships and the directions we are heading towards. Over to you Balaji.
Balaji Srinivasan — Chief Technology Officer and Executive Director
Thank you Sandeep. I’m excited to share how our ongoing investments in technology and innovation are making a real difference, improving performance and strengthening our reputation as a trusted partner in various industries. We are at a pivotal point where we are making major transformation in our tech platform.
This strategic transformation is powered by a modern cloud based tech platform enabling real time collaboration, efficient growth and quick responses to customer feedback. This has evolved our system from a simple operational tool into a vital strategic asset creating personalized and user friendly experiences for our clients tech savvy customers. With our in house tech infra capability and adaptability, it helps us to be future ready for the impressive expansion in enterprise client base and new services. We are also developing a flexible platform that allows customers to easily customize and bundle services. One of the most exciting features of a platform is a smart system that helps customers use our services in a flexible manner.
This technology allows people to choose from both traditional services and new modern ones and they can mix and match these services depending on what fits their goals, preferences and budget. Overall, our goal is to help customers provide more value to consumers. We are giving users more choices, more control which means a better and more personalized experience for everyone using our platform. A key part of this strategy is leveraging a core strength our fungible and our spend based models. This unique approach allows us to offer a wide array of choices to the consumer enabling us to serve a broader range of consumers ever than before.
Importantly, our tech is integrated into our client systems allowing us to create data driven solutions that address real business needs. We don’t just provide tools, we work with our clients to develop long term solutions. We are continuing to work on bespoke solutions for our global clients corresponding to our focus in new regions of Southeast Asia, Middle east and other regions and also streamlining integration for dynamic pricing at both client and vendor ends. In summary, our focus on innovation is changing the service landscape. We are building scalable systems that align with our client goals. Our mission is clear to drive measurable success while staying agile and responsive in a rapidly changing world.
I will hand over to Shekhar for an update on the financials for the quarter ended on 30 June 2025. Over to you Shiv.
Shekhar Sood — Chief Financial Officer
Thank you Balaji. A warm welcome to everyone joining today’s call. We are pleased to hear that the company has delivered a steady performance in the first quarter of FY26. Let me now walk you through our Q1 FY26 financial results. During this quarter we posted operating revenue of INR 348.9 crore, up from INR 3 to 0.8 crores in Q1FY25 marking a year on year growth of 8.8%. Gross profit stood at INR 46.6 crore, an increase of 24% over INR 37.6 crores in Q1FY25. Our gross margin stood at 13.3% in Q1FY26 compared to 11.7% in the same quarter last year.
Adjusted EBITDA excluding loan cash ESOP expenses stood at INR 30.5 crores reflecting an year on year increase of 18.7%. This resulted in an adjusted EBITDA margin of 8.7% in Q1 FY26 compared to 8% in the same quarter last year. Our adjusted profit before tax stood at INR 29.5 crore, growing by 19.7% with an adjusted PBT margin of 8.4%. Profit after tax for the quarter was INR 21.3 crore, up wide 24% from the previous year as the PAT margin stood at 6.1% in Q1FY26 compared to 5.3% in the same quarter last year. Quarter on quarter basis, our revenue grew by 11.11% while our adjusted EBITDA grew by 21.1%.
As of 06-30-2025, our network stood at INR 322 crore growing by 26.6% over Q1FY25 which was 254.5 crores. Now I request the moderator to open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Narsik from Systematic. Please go ahead.
Narsik
Good evening ma’. Am. Thank you for taking the question. Just want to understand at the July 1st circular you informed that that majority that banking customer has of the contract. So we will inform the material revenue impact on the team. Can you please justify what will be the impact on our business? See, as you know, Librita also mentioned in her speech that we are gauging as to, you know, what is the extent. What is the extent of, you know. See, we have already declared that two of the banks have already moved from our platform and we feel there could be many more banks who are under pressure. In fact, we are aware of this. So the extent of problem cannot be gauged at this point in time. I mean, you know, to be frank and that is what.
Liberatha Peter Kallat
Yeah, so just to actually add on that, you know, the contracts have not been cancelled with us, okay. The contracts are still ongoing with all these clients and there are different programs which are still running. Okay. And apart from that there are other new additional programs which are also in pipeline in terms of, you know, closures. So I would say that it is not that, you know, we have mentioned it was regarding few of partially the business of these clients have been impacted. However, if you actually see that is still a portion of business which is still continuing with these clients.
Narsik
Okay, thank you ma’. Am.
operator
Thank you sir. The next question is from the line of Shreyas Mehta from iCVirus. Please go ahead.
Shreyans Mehta
Yeah, thanks for the opportunity. First, can you quantify the number of packs, you know, which had visited our launches during the quarter?
Shekhar Sood
Just a minute. 4.2 million. 4.2 million shares.
Shreyans Mehta
4.2. That’s the industry or our number.
Shekhar Sood
Sorry, sorry. 2.5, 8.58 for the quarter. 2.58 million.
Shreyans Mehta
Got it. And is there any one off or you know, any other income which we booked during the quarter because the. Or is it primarily because of the hikes which we know we might have taken during the quarter?
Shekhar Sood
Look, so as far as the other income is concerned, there is no. Some exceptional income which has been put in the current quarter.
Shreyans Mehta
No, no, I’m not talking about the other income. Anything, you know, which we might have booked in the revenue from operations, the core operations. Any one time income in cases.
Shekhar Sood
Is nothing exceptional that has been booked here. It’s purely normal business operations revenue.
Shreyans Mehta
Got it, Got it.
Liberatha Peter Kallat
From April. That is a prior, you know, the price revision. Right, so those are the changes which you can see in the revenue.
Shreyans Mehta
Got it. And secondly, you know, in terms of, you know, I can understand the situation is still evolving, but what are we doing, you know, to stop the other services being moved from a platform because even that can be replicated by the competitor.
Liberatha Peter Kallat
So actually if you look at it right now the way. And I’m sure you are understanding what is happening. Right, so the competition was there in the past as well, but the competition was more in terms of, I would say technology or commercial or packaging. Right. But right now the competition are not on these lines. It’s more on, you know, I would say the real estate owner who is actually trying to get into this business. Right. So I would not consider this as a competition. Now secondly, they are asking that whatever other things, what we are developing, we would not have a competition.
I would not say that there would not be a competition, but I would say that this type of things would not have. I would say that yes, we may have. Like in past I said there were players who were coming and trying to compete, so there would be players who would try here as well. But I would say that it would take time for them because right now what we are building in is it is more in terms of creating a complete customer value proposition. Unlike the dependency was only on one particular benefit which was launch.
Right now what we have created is not to have a dependency on one benefit, but rather we are actually building packages and that’s what the creation is. Secondly, it is not focusing on travel. I would say these packages are more on non airport related. There is travel included in this, there is lifestyle services in this. And I would say that like the real estate owners who are trying to get into this business there would not be something such which will happen in what we have created now.
Balaji Srinivasan
And also Shreyans, not to forget. See the engine, the technology engine that we have which Bala did alluded to. You know, that allows us to, you know, that allows us and whatever integration that we have already done with the bank that allows us to really tailor made bespoke packages which for any other operator to come and enter into this business and start delivering these kind of bespoke tailor made solutions will be very, very difficult. You know the fungible model, the spend based model will definitely is our strength and it continues to be part of it.
Shreyans Mehta
Sir, I have a couple of more questions. I’ll join back in the queue. Thank you.
Liberatha Peter Kallat
Sure.
operator
Thank you. Sir, the next question is from the line of Neerav Shah, a retail investor. Please go ahead.
Neerav Shah
Hi, thanks for taking my question and taking me in the queue. I would like to know for this quarter one, the revenue split or maybe percentage wise if you can provide on the launch and the non launch services. Sir.
Sandeep Sonawane
So launch services remained at close to 93% and rest was 7%. So. So that is almost similar what we had actually quoted in the last quarter.
Neerav Shah
Correct. Okay, thanks for answering. And now there must be. Apart from as Ma’ am has shared multiple times, there are ways that we are taking initiatives in other wellness, maybe the coffee on the mall. Apart from that, are there any active discussions or maybe strategic initiatives to mitigate this volume? Because I’m sure from quarter two we might see a different number in that profit like percentage deviation the business coming from the launch of sales.
Liberatha Peter Kallat
So you’re right. So apart from what we have spoken about, you know, the services. Yes. We are also in talks for the strategic partnership. I would say rather I would say in terms of acquisition. Right. So there are, I would say we have shortlisted couple of them and. And once it is, you know at the closing stage for sure we will announce those and these acquisitions will surely, you know, help in companies top line and also the pnl.
Neerav Shah
Thank you so much.
operator
Thank you sir. The next question is from the line of Vishal Mehta from IIFL Capital. Please go ahead.
Vishal Mehta
Yeah. Hi. Thanks for taking my question. Pardon my ignorance here but you know, while I understand that you have categorized your non lounge services into broad categories but if you can elaborate with few live examples on your non lounge services, that is both on you know, your banking client side as well as on your corporate client side, that would be helpful to understand really what you guys are probably building.
Balaji Srinivasan
So there are, you know I will put it in two buckets. There are, you know, services which are already live and you, you are aware of all the services and we have been mentioning quarter on quarter like, you know, whether it is railways, whether it is park. Also there is another category of services that we have developed which we. I did mention that I will talk little later because as and when we, you know, bundle these and give it to the clients which we are in discussion with. And you will also appreciate that these, you know, kind of discussions take a little longer and the closure takes little longer.
So you will soon hear from us. And of course golf also we are bullish. I did mention about even the social club. The response that we have access to the social club because it’s an exclusive service. The responses that we are getting from our clients, both bank as well as enterprise, are really promising. And you will soon hear from us. I am not mentioning any other service at this point in time because I have to close the agreements. Only then I will be able to share that maybe in the next quarter. Call earning call. I think we should be able to share that.
Vishal Mehta
Okay, so second question. Would your margins here be dilutive compared to your lounge services or. Because, you know, at an, at an EBITDA level. I’m saying because you would obviously need more manpower and admin to take care of these small services. Right? Small and staggered services.
Balaji Srinivasan
So. So I tell you two things. Fine. So one is that, you know, all the services other than the lounge will always come at a sl. Slightly better margins that we have mentioned it many, many times. So point number one and point number two on what was your second question? Sorry. Okay. In terms of, you know, the GTM model that is required to acquire services that also if you were to look at it last year, we have increased our manpower and I think, you know, whatever GTM model that we have, you know, adopted, the current number of people should help us in terms of, you know, navigate through.
However, obviously every single year, whether it is technology side, whether it is operations, whether it is even commercial side, as and when we think that there are people required, we will definitely take which is part of our regular business as usual and budgeting. So nothing special, which we did last year in terms of increasing manpower.
Vishal Mehta
Sure. Okay, thanks. Thanks.
operator
Thank you. Sir. The next question is from the line of Nilesh Doshi from Prospero Tree pms. Please go ahead.
Nilesh Doshi
Thanks for the opportunity. Am I audible?
operator
Yes, thank you.
Nilesh Doshi
Thank you. I would like to ask. The two major banks have shipped a business with the dream folks. So why the Dream Folks fails to retain them. What are the major causes? Whether it is the launch operator offering the better deals or are they not satisfied with the Dreamwork services? What is the exact reason why the Dream Folks fails to retain them?
Sandeep Sonawane
See, frankly speaking, you know, the fact that, you know, the same clients are working on us other than the lounge service, I think gives you a rough idea as to whether the client is happy with us or not. As we speak, both the clients are also having some programs which are still running on our platform and continue however small they might be. So that answers your question. I think there are things which cannot be told and I will refrain from saying anything but just to give you a little bit of comfort that the clients are definitely happy with what we are doing.
It’s been 13 years we are working with these clients and the fact that they are wanting us to come out with newer and newer proposals shows this is a testament for what we have done in terms of technology and of course the kind of services that their consumers are happy adopting or using. So I don’t want to say beyond this. So I mean, to answer your question, yeah, no, no, no, there could be definitely more reasons. And I think we, all of us are actually reading newspaper, watching televisions. I think the reasons are out there.
Nilesh Doshi
So I understand that what you want to say and I understand that. So whether the these launch operator will directly offer the same offer which they have offered to the excess bank as well as the ICICI bank to some other bank and thereby we may lose the further business because we are currently enjoying or in the last presentation it was mentioned that more than 90% or around 90% market share. We are enjoying those who are accessing the launch through the car. So will that market, sir, come down substantially? Because the still today 97% revenue is coming from the launch business.
So how we are, what is our sustainable sustainability of our business?
Liberatha Peter Kallat
So if you have actually heard me in the speech as well, I have clearly mentioned that yes, even the other clients are under pressure and there are chances of, you know, this migration. And this is one of the reason that, you know, why we have immediately changed our focus also in terms of, you know, getting the other services immediately integrated with the banks. Right. So it is not that and we completely understand that, you know, and I’m sure you also understand the way the market right now is because there are certain areas where we cannot have the control.
One important thing, what Sandeep actually mentioned to you, that our client relationship, what we have, even though these clients who have migrated the Launch program still continue to have the contracts with us. It’s not that our contracts have been ended. Our contracts are still live. There are programs which are still running with these clients. And furthermore, we are also in discussion with them for activating the other services as well and other programs as well. So initially I would say that, you know, when, yes, lounge was the main product, our focus was, I would say, you know, not as much how we were focusing on the lounge business was, I would say equally what was, you know, the percentage was lower for the other business growing.
But right now, yes, the way the business dynamics have changed, I would say that our complete focus is to ensure that all the other services get integrated and we launch it at the earliest. And let me also tell you that for the same thing, all the banks are supporting us because whatever is happening, even the banks are not or the clients are also not comfortable.
Sandeep Sonawane
And for the sustainable growth, Librita has already mentioned that there are a few acquisitions, partnerships that we are trying and of course our global focus is significantly increased from what we have done so far. So this helps us in terms of giving assurance that yes, our model or business model will be sustainable. Yes, there could be some hiccups, but I think long term we stay committed to building, you know, our business.
Nilesh Doshi
So can I summarize in a one sentence that the launch operator becomes the aggregator and they become the direct competitor of the dream force and they are grabbing the business from the dream folks. By who? Cork Group?
Liberatha Peter Kallat
I would say that yeah, they’re trying to become a competition only for the lounge business. But whatever the other new things, what we are building up, they are not a competition.
Nilesh Doshi
Okay? Okay. All the best, madam. All the best for the future business.
Liberatha Peter Kallat
Thank you.
Nilesh Doshi
Thank you.
operator
Thank you, sir. The next question is from the line of Naveen from I thought pms. Please go ahead.
Navin Koushik
Are you able to hear me?
operator
Yes, sir.
Navin Koushik
Yeah. So my first question is going to be related to the employee configuration expenses. I’m just saying that for the last couple of quarters it’s been inching up. And the last time I asked about it, I was told that we are hiring, you know, to like help with the business development side. So I just want to understand that this incremental cost, right, Is it mostly like value growth where you increase various or like are we still hiring more people?
Shekhar Sood
So I did mention that whatever hiring that was done for growing the enterprise business was done, whatever hiring that we will do will be business as usual. I hope that answers your question. So it is as this. I mean business as Usual this year.
Navin Koushik
Right, right.
operator
And sir, can you please use your handset?
Navin Koushik
Yeah, just give me a minute.
operator
Thank you.
Navin Koushik
Hope my voice is much clear now. Hello?
operator
Yes, sir, please go ahead.
Liberatha Peter Kallat
Yes, yes, it’s clear.
Navin Koushik
Yeah, yeah, yeah. So the next question is going to be about margins. So correct me if I’m wrong, but I heard it improved slightly year on year from 11.7 to like around 13% this year.
Liberatha Peter Kallat
Yes.
Navin Koushik
So I just want to understand, like, you know, do we know what drove this increase and whether it’s structural or will we see it go back to the 1112 levels? Maybe something like a favorable product mix or something like that?
Shekhar Sood
Yeah, see, actually there is going to be a change of the product mix and we are slightly at an early stage to make conclusions, you know, of what or how it is going to shape up. So I think at this stage we are unable to make a comment on that, but we are happy with what we have delivered in Q1.
Navin Koushik
Yeah, yeah, thanks a lot.
operator
Thank you, sir. The next question is from the line of Miten Shah, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thank you for giving the opportunity. So I would like to know, you know, what will be the percentage client breakdown? You know, like we have a partner with banks, credit cards, then OTAs, airlines. So which, which vertical, you know, contributes the most? Basically.
Shekhar Sood
Of course, the banks. Bank contribute.
Liberatha Peter Kallat
The mix between the bank and the enterprises.
Unidentified Participant
Hello? I lost you. I mean, in between. Able to hear you. Am I audible?
Shekhar Sood
Yeah, sorry. Sorry. The question was what is the mix you are asking.
Unidentified Participant
Correct, correct.
Shekhar Sood
What is the mix in terms of what number of clients or what is the question?
Unidentified Participant
A percentage revenue contribution from different verticals like banks, airlines, OTAs, you know, the different customer verticals that we have.
Shekhar Sood
I think, you know, we can answer these questions, I think, you know, separately, one on one, if needed.
Unidentified Participant
Okay. Okay.
Shekhar Sood
Yeah, but broadly, we have already spoken. Other than the lounge, you know, service, I mean, the margins are high. And also, if you were to look at it in terms of the client, the enterprise client would obviously have slightly better margins than the margins that we enjoy with the bank as a client.
Unidentified Participant
Correct. Okay, got it. The next question would be like, you know, we saw the slight uptick in the margin that we recorded this up. I mean, what led to this margin uptick compared to the Q1 last year?
Balaji Srinivasan
So this is a business as usual. I mean, I would say bau. I mean, you know, it is. There is always a push and pull, whatever negotiations that we do. Basically we get the rate escalation from the operator side or Vendor side, I mean, you know, and then we actually give to the client. So it is basically that.
Unidentified Participant
Would we be able to maintain or could there have been upside to this? Any thought on this?
Sandeep Sonawane
I think BALA just answered this question that we are actually going to integrate or adopt more and more other services other than the lounge. And I did mention that those margins will be slightly better. So.
Unidentified Participant
Yeah, yeah, I understand the margins is better, but, but, but if the realization of the volumes are still pretty minuscule, you know, we say about 67% they’re not on services. I mean, would it be really that effective? That’s the reason as of now or even for the next one or two years as well. So that’s the reason I was asking. I mean, where, where would we get the traction from? That was what my main query actually.
Liberatha Peter Kallat
Then I would say that right now, the way the model is, right. In terms of if you actually look at the model and what Sandeep was trying to explain was more into per patch transaction or a per transaction model. Right. But however, right now, as we mentioned to you that we are actually building the complete CBP which is a customer value proposition in that the model is slightly different. It is not actually going to be a per transaction but it’s a membership model. So it’s actually a packaging what we are building. So it will be very difficult right now to actually talk about, you know, what the migration has going to be.
Unidentified Participant
Correct. Correct. All right, yeah, that’s a lot. Thanks. Thanks a lot for being and wish you all the best once again. Thanks a lot.
Liberatha Peter Kallat
Thank you.
operator
Thank you. Sir. The next question is from the line of Shrians Mehta from Aquarius Capital. Please go ahead.
Shreyans Mehta
Yeah, thanks for the follow up. Can you quantify the. The revenue share from, you know, from the two banks, you know, who have terminated the contract?
Liberatha Peter Kallat
As we mentioned, they have not terminated the contract. The contract is still in place. And secondly, not all the programs are switched off. We are still continuing the program. And Sandeep, I’ve just mentioned that we will not be able to quantify that right now. Maybe in the next call or we will be able to actually give you these numbers.
Shreyans Mehta
So I agree, I mean not termination, that was the wrong word. But you know where they’ve cancelled the lounge part of the business or else.
Liberatha Peter Kallat
You know, even in the lounge part there are certain pins or certain cards which are still on our platform, which are not. So the migration is not hundred person yet.
Shreyans Mehta
Okay, so the, I mean whatever part we, you know, probably they have canceled or whatever, you know, the type of cards which they have, you know, cancel the services. That is effective from July, 30, 30. The, you know, I mean, say, for example, if, you know, ICICI might have, say, eight or 10 variants of that, probably five would have, you know, transferred or, you know, would have moved away. So those would be, you know, would have moved from. Effective from July.
Balaji Srinivasan
I think here, without getting into specifics, because this is something that is part of a larger migration. Without getting into specifics of programs or. I think Nipita has already kind of made a summary of the whole process. But I think the larger picture, what Sandeep was trying to mention is that the point is we are not trying to or we are not working with only on this. There is a larger change that you will actually see in the next month or so. And maybe, of course, we will be sharing that in a larger group once it happens.
But the structuring of the benefits is not going to be limited to lounges going forward, forward. And that is the change that we are working with our clients to see how it’s going to happen. And it’s going to happen fairly fast. So I think it’s. Let’s just wait for maybe a quarter and by then we should have some interesting news to share with all of you.
Shreyans Mehta
Got it. That’s it. From my side. Thank you.
operator
Thank you, sir. Ladies and gentlemen, due to interest of time, that was the last question for today. I now hand the conference over to Ms. Libeta. Ma’, Am, for closing comments.
Liberatha Peter Kallat
Thank you all for joining our earnings conference call. We hope your queries have been answered. For any further queries or information, please contact our Investor Relationship team at ey. On behalf of the company, I thank you all once again for your time and participation. Do take care of yourself and goodbye. Thank you.
Liberatha Peter Kallat
Thank you, ma’. Am. On behalf of Dreamfork Services Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.