Dreamfolks Services Ltd (NSE: DREAMFOLKS) Q3 2025 Earnings Call dated Feb. 07, 2025
Corporate Participants:
Liberatha Peter Kallat — Chairperson and Managing Director
Sandeep Sonawane — Chief Business Officer
Balaji Srinivasan — Executive Director
Giya Diwaan — Chief Financial Officer
Unidentified Speaker
Analysts:
Deepali Kumari — Analyst
Kaustav Bubna — Analyst
Unidentified Participant
Kunjan Ganatra — Analyst
Shreyans Mehta — Analyst
Presentation:
Operator
Ladies and gentlemen, you have been connected for Deam Folks Services Limited Conference Call. Please stay connected. We will begin shortly. Ladies and gentlemen, you have been connected for Dream Folks Services Limited Conference Call. Please stay connected we will begin shortly ladies and gentlemen, good day and welcome to Deam Folk Services Limited Q3 and Nine Months FY ’25 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 the 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 include known or unknown risks, uncertainties and other factors. It may be viewed in conjunction with the company’s business risk that could cause future results, performance or achievement to differ significantly from what is being expressed or implied by such forward-looking statements. Today on this call, we have with us Ms Karat, Chairperson and Managing Director; Ms Jia, Chief Financial Officer; Mr Balaji, Executive Director and Chief Technical Officer, Sir; and Mr Sandeep Soonawani, Chief Business Officer. I now hand the conference over to Ms. Thank you, and over to you, ma’am.
Liberatha Peter Kallat — Chairperson and Managing Director
A very good evening, everyone, and thank you for joining us on the earnings conference call for the quarter and nine months ended 31st December 2024. We announced the financial results earlier today, and I hope you have had a chance to go through the results, investor presentation and press release, which are available on the stock exchanges and on the company’s website. During the nine months of financial year ’25, the two main revenue drivers, that is the air traffic and credit card growth grew by 6.7% and 13.7%, respectively.
Revenue grew by 14.5%, beating industry growth on account of addition of new clients. Our strategic focus of expanding our services beyond travel to lifestyle services will provide tailwinds to our top-line growth in the coming years. During this period, bank clients continue to increase the minimum spending threshold on cars, thereby maximizing their by spending money on right set of users leading to a slight change in our volume mix, which put some pressure on our gross margins to 11.8% in nine months financial year ’25.
However, this is in-line with our gross margin guidance of 11% to 13% for financial year ’25. Our adjusted EBITDA margin stands at 7.9% in nine months financial year ’25. We are witnessing structural change by our bank clients as part of the spend based program implementation, so that the benefits are being offered to the right set of users. As part of our expansion strategy, we hired top talents in India and out of India, which slightly impacted our margins.
These decisions, while impacting our margins in the short-term are designed to strengthen our market position and enhance our long-term profitability. The company’s strategic direction remains focused on diversification and expansion across three critical: services, clientele and geographies. This approach is not just about growth, it’s about innovation and broadening our horizons to serve our customers better and to create a more robust business model.
We are excited to announce addition of new services such as baggage wrapping and coffee at malls. This addition not only enhances our service portfolio, but also addresses a growing need for offerings beyond the travel sector and tap further into lifestyle space. Baggage wrapping will help travelers seeking added security for their luggage and the thought behind launching coffee as a benefit was to tap into one of the largest spending categories after travel that is shopping.
Further we have expanded our domestic presence with the addition of two new lounges at Airport and Goa Airport, bringing our total domestic airport lounge touch points to 76. This expansion ensures we maintain 100% coverage at India Airport, reaffirming our commitment to providing comfort and luxury to travelers across the nation. We continue to maintain 100% coverage at railway stations as well with our 30 railway launch touchpoint. We have introduced new Girls club in Maharashtra for one of the leading card issuers offering opportunities for networking.
The total number of golf courses in our network now stands at 63 in India as on 31st December 2024. In terms of diversification of clientele, we have taken significant steps during the quarter. We have successfully added 13 enterprise clients, including prominent OTAs like Make MyTrip and TBO. I will leave it for Sandeep to Delvey Jeeper into our new partnership and the value they bring. We have also continued to expand our portfolio of banking clients, some of them transition to us from the competition. This shift is clear indicator of our superior service quality and the trust we have earned with our clients.
On the global front, our expansion continues with the addition of 10 international lounges, enhancing our global lounge network. The total number of airport lounges outside India now stands at 671. Moreover, our meat and SS services have now extended to more than 380 airport terminals worldwide, ensuring a seamless and personalized travel experience for our customers wherever they may be. On 31st December 2024, we have 605 golf courses outside India providing access to call games and lessons across the world. I will quickly talk about the industry.
The outlook for India’s travel industry is highly optimistic with WKTC projecting the sector to grow at 6.9% annually and expand to $512 billion by 2028. This growth will be driven by a blend of socioeconomic dynamics, technological progress and strategic government initiatives fostering substantial expansion. The recently-announced 2025-’26 union budget places a strong emphasis on stimulating growth, generating employment and developing infrastructure in the sector.
The central government has announced plans to channel investment into infrastructure development closely in partnership with state governments. Under the modified scheme, 120 airports will be connected and carry four crore new passengers in the next 10 years, which will significantly boost regional connectivity, fostering economic growth by enhancing trade, tourism and investment opportunities across undeserved areas.
Additionally, there is a determined effort to boost spiritual and medical tourism within the nation. The significant focus of the government on this industry highlights the immense potential it possesses in the world’s fastest-growing economy. The credit card industry is also experiencing a robust expansion driven by digital economic push, technological innovation, regulatory reform and changing consumer habits.
The number of credit cards in circulation has grown by 10% year-on-year to 108 million credit cards as on 31st December 2024 as-reported by the RBI. This growth is driven by the bank — banking sector’s evolution, collaboration between banks, credit card issuers, fintech and startups and a trend towards digital payments. To conclude our strategic endeavors in diversifying services, expanding our client and extending our global reach are stepping stones to a future where our brand is synonymous with excellence, innovation and customer satisfaction.
Our ability to navigate challenging market conditions highlights our technological strength and operational excellence. The achievement reflects the commitment of our team and demonstrates our ability to ensure consistent service delivery. Together, we are building business that sets new benchmarks in the industry. With this, I would like to invite Sandeep to give an update.
Sandeep Sonawane — Chief Business Officer
Thank you,. Let me take you through the strategic vision that is guiding the company forward as well as the updates for the quarter. Dreamfolks focused on growth and diversification through three key drivers that is client addition, wide range of services and geographical expansion within India and globally. Our goal is clear to continue leading as a dominant travel and lifestyle service aggregator. In the ream of services, we have made significant strides.
The contribution of services other than India Airport lounge has increased to 6.9% in the first-nine months of FY ’25, which was at just 25.2% in the same-period last year. This remarkable growth is a direct result of our commitment to expanding our service offerings. We are also excited to announce the new services, one of being — one of them being coffee as a benefit at the malls. At Dreamfolks, we are dedicated to continuously enhance the customer experience in meaningful ways.
This complementary service is designed with an intent of elevating the overall shopping experience, providing a moment of relaxation and indulgence amidst shopping. We recognize that shopping is an integral part of the consumer lifestyle and by offering this unique benefit, we not only help reduce the client’s cost, but also add significant value to the customer experience. This service will help the — the — help drive customer loyalty, deepen engagement and encourage higher spending benefiting both client as well as customers.
Not only will this service enhance our client offering, but it will also drive more transactions, save cost and increase engagement. The other service that we added was baggage wrapping, a convenient way to To secure luggage, protecting it from damage and tampering. The service involves encasing suitcases in durable plastic wrap, ensuring travelers belonging — the travelers belongings remain safe and intact throughout the journey. We currently have the service present at 12 airports in India and are in the process of expanding it to more cities. Our lounge business remains the cornerstore of our company with the addition of two domestic lounges at and Airport, taking our total domestic count to 76%, maintaining 100% coverage. Despite this challenge — despite the challenges posed by the spending-based programs, we have successfully maintained our volumes, highlighting the strength and resilience of our business model. Turning to our clientele, our focus has been adding a number of enterprises and I am thrilled to report that we have added 13 new enterprises in this quarter. Our partnership ranges from integrating with the likes of Make My Trip to provide customers with the option of purchasing airport lounges during the flight booking process. Two, collaborating with likes of TBO, WSFX, Global Company and more. We have also forced alliances with few more enterprises like travel agencies and loyalty companies. Furthermore, we have welcomed new banking clients who have chosen us over our competition due to our wide array of services and robust tech. Our global expansion remains a key focus with new — 10 new lounges added globally and 18 new F&B outlets in Dubai and Abu Dhabi. Our meat and assist services now extend to more than 380 airport terminals worldwide and we boast a network of 605 golf courses outside India. In conclusion, our strategic endeavors are not just about growth, they are about setting a new standard in the travel and lifestyle industry. They are building a legacy of excellence, customer satisfaction and global reach. With that, I will now request Bala to take through what has happened in the last quarter.
Balaji Srinivasan — Executive Director
Thank you, Sandeep. I’ll give an update about our technology platform. As you may be aware, our platform is designed and aimed at providing our clients and their end consumers the visibility of their benefits, provide access to such benefits, the choice of access mechanism and the host of services, while at the same time getting an excellent consumer experience. And the superior technology stack as the underlying core of such enablement of multiple services we have at a company.
As Sandeep mentioned, we are seeing a continued trend where our clients are continuing to do more deeper integration with us and are leveraging our platform spend based options and other tools for existing products and new product launches. Many of you may have already used our web-based web access product where consumers can register the cards, keep the benefits and the services that is available on that card, for example, lounges, meternesses and other services.
They can also take the utilization on such card and eventually generate a QR code to get access to such lounges. They can also take friends and family along by going-in the paid model, case the friends and family don’t have access to complementary lounges or in case the complementary visits have been exhausted. Our entire stack is proprietary and has been developed in-house. The platform and the technology is cloud-based and it allows the partners to check the benefits of the consumers based on the cards, memberships, ouchers and also allows access to different facilities-based on the benefits of the integration as for the client, such as banks networks, processes and their underlying businesses.
In the back-end, our platform actually comprises of quite a few companies there is benefit configuration, there is benefit calculation, there is an entire management engine and there are also data exchange APIs with different banks and networks and these integration options to embed deeply into different mechanisms with our partners. Our platform also facilitates the use of hybrid access modes depending on the client’s purpose, so they can use whichever mechanism is most beneficial to them. It also facilitates access processes so the consumers benefit such things in Real-time across various access models.
And that drives accurate accounting and is designed to prevent abuse and deny of certain customers. I will hand over to JR for an update on the financials for the quarter. Over to you, Jim.
Giya Diwaan — Chief Financial Officer
Thank you, Bala. And a very good evening to everyone. I truly appreciate your presence today. This quarter marks new milestones in our ongoing progress. It reflects our collective efforts and foreshadows future opportunities. We navigated challenges, achieved successes and adapted to change, all while adhering to our core values. The financial results we’ll review today are not merely data points. They demonstrate our commitment and the positive impact we are delivering to our clients and the industry.
I will begin by giving you the quarter highlights first, followed by the nine-month period. Revenue for the quarter stood at INR340.1 crores, an increase of 11.5% from INR305.1 crores in the corresponding quarter of the last year. Gross profit stood at the same level at INR38.3 crores as compared to Q3 FY ’24. Gross profit margin saw a marginal decline due to the reasons highlighted by Librita in her speech earlier. Adjusted EBITDA stood at INR25.8 crores as compared to INR29.7 crores in the same quarter of the last year. Adjusted EBITDA margin was at 7.6% as against 9.7% in-quarter three FY ’24.
The company recorded a PAT of INR16.9 crores as compared to INR20 crores in Q3 FY ’24. PAT margin declined slightly to 5% as compared to 6.6% in Q3 FY ’24. Diluted earnings per share for Q3 FY ’25 stood at INR3.2 as against INR3.7 in Q3 FY ’20. Now moving on to nine months FY ’25, revenue for the quarter stood at INR977.7 crores, a 14.5% growth as compared to INR853.9 crores in the corresponding quarter of the last year.
Gross profit saw a modest growth at INR115 crores as compared to INR101.7 crores in nine months FY ’24. Gross profit margin was at 11.83%, almost in-line with nine months FY ’24. EBITDA stood at INR77.1 crores in nine months FY ’25 as compared to INR76.1 crores in the same-period of the last year. Adjusted EBITDA margin was at 7.9 as against 8.9 in nine months FY ’24. The company recorded a PAT of INR50.1 crores as compared to INR50.7 crores in nine months FY ’24. PAT margin declined slightly to 5.1% as compared to INR5.9 in nine months FY ’24. Diluted earnings per share for nine months FY ’25 stood in-line at INR9.3 similar to nine months FY ’24. Our cash-flow from operations has improved significantly compared to last year.
The cash-flow from operations stood at INR36.5 crores in nine months period as compared to negative INR32.9 crores in corresponding period last year. This is on the back of improved DSOs. We continue to have a strong balance sheet. Our net-worth as on 31st December 2024 stands at INR284.8 crores compared to INR236.4 crores as of March ’24. Our cash and reserves balance at that quarter-end stood at INR1,134.5 crores. Our working capital cycle for the quarter-end stood at 30 days from 58 days in the last quarter. Our strategic initiatives, especially towards global expansion are well underway and are expected to serve as a catalyst for future growth. We remain confident in our strategies that has helped us deliver sustainable growth so-far. With that, I would like to conclude my update and we are happy to open the floor for questions.
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets only while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have our first question from the line of Depali Kumari from Arihant Capital Markets. Please go-ahead.
Deepali Kumari — Analyst
Yeah, hello. Yeah. Thanks for the opportunity. I just have couples of questions . Like what are the key drivers behind the company expensing beyond the airport launches? And how do you see this segment evolving? And also with service like baggage wrapping and coffee at mall being introduced, how do you plan to scale and integrate this offering?
Sandeep Sonawane — Chief Business Officer
What? How do you see the segment evolving? And third question I again so,
Deepali Kumari — Analyst
Sir, I’m asking what are the key drivers behind the company expansion beyond airport launches and how do you see this segment evolving
Sandeep Sonawane — Chief Business Officer
Okay. So I think it was mentioned that you know our two main vectors which decides are top-line growth. One is that — one is of the air traffic growth and the second is basically as to how much is the credit card industry growing every month-on month or maybe for that matter year. So these are two big vectors that drives fundamentally our top-line.
Deepali Kumari — Analyst
Yeah, okay. And sir, what is the strategy for increasing revenue from non-airport loan service to the targeted 50% to 20% in the next four to five years.
Sandeep Sonawane — Chief Business Officer
So we have continued. In fact, you know our strategy is very clear, expand in terms of the client base or rather increase the type of the client that we have. Currently, significant portion of our business is coming from bank as a client. We are adding quite a lot of number of enterprises and we just mentioned that we have added 13 enterprises. So that is what part of strategy number-one. Part of strategy number two is to increase the number of services. So we move away not only from the travel as a sector, but we are also targeting lifestyle as a sector and hence golf becomes important, hence coffee becomes important, so on and so forth.
So as we keep adding more-and-more services, the opportunity to really sell these services to our sponsor clients increases. So that is strategic pillar number two. And the three — third one is global expansion. So while we feel very confident in terms of what we have built-in India and because of which we have whatever market-share, which we are really dominant. We feel that even our tech progress, we can take the same model elsewhere and probably replicate in any other country. And that’s the strategy number three, which is going to Southeast Asia market as a first or maybe Middle-East as a market as a Phase-1.
So these are the three strategic pillars that we keep driving.
Deepali Kumari — Analyst
Yeah. Okay, sir. Also, sir, the company has increased its F&P presence, presence written 18 new outlets in the Middle-East and nine in India. So how do you use the economics of F&B operations compared to traditional non-service in term of revenue per transaction and margins,
Sandeep Sonawane — Chief Business Officer
It’s a question that how does the F&B differ from lounges in terms of
Deepali Kumari — Analyst
Traditional launch?
Sandeep Sonawane — Chief Business Officer
Okay, compared to traditional lounges. Okay. In terms of — if you were to really look at the value, unit value, the unit value would be close to 60% of the lounge or maybe 50% in some cases. However, the propensity of using an SMB is higher because there is a choice to the consumer, unlike a lounge where you have to go into a lounge, which is probably only one in a airport, in a single airport. So hence, we are expanding our portfolio because quite a lot of consumers are feeling or rather they enjoy the local cuisine, the local — the local culture of the country and that is why we thought that F&B plays a very integral part to it, which also defines a little bit of culture of the place. And that is why we are adding a lot of F&B places across globe, also in India.
Deepali Kumari — Analyst
Okay, sir, sir, I have one more question like how that come
Operator
May please request you to reject the queue.
Deepali Kumari — Analyst
Yeah, yeah. Okay.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to take questions from all participants in the — in the conference. Please restrict yourself to two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from the line of Bhugna from BMSPL Capital. Please go-ahead.
Kaustav Bubna — Analyst
Hi, so wanted to understand your view on the competit — the competitive threat that a player like Priority pass poses to Dreamfolks. I also wanted to understand the — so when we see Priority pass cards, you see that PriorityPass has its own card. It’s not like you have an HDFC card and then your lounge access is permitted through that HDFC card. They give us separate Priority pass card, right? So just wanted to understand the business model difference, how do you — they’ve created a brand, so they can do that. How do — how do you see your business evolving in that regard? And also how you — what is strategy to battle competitive sets from players like Pass.
Liberatha Peter Kallat — Chairperson and Managing Director
Sure. So firstly, just to tell you that, yes, Pass is you know, I would say 30 plus year-old company in the market. And. And I think the way Dreamforce actually came up in the market was to create a differentiator and the differentiator was family not to give a separate card, but to actually give the benefit on the same credit or the debit card. So that was the biggest difference. So Priety was already-existing in India, it’s not that they are a competition which has come now or recently. They were always there. However, because of the differentiator what we created in terms of the technology,
In addition to that in, I would say couple of years, the way we have also built the different services and the way the technology is now deeply integrated with all our clients, right? So that is one of the biggest strength and I would say a differentiator what we created. So we do not see a threat with the competition like or a priority park for us because especially for India and that’s how we have gained the market-share from them. The differentiator what we are rather creating and not to have a separate plastic because today, you know, everything is changing and payments are becoming digital.
So people are actually not even carrying any additional cards with them. So carrying a card just for a lounge access or for a benefit is actually, you know, I would say a no-no or I would say it’s no more there, right? So the way we are actually building even in terms of growing in other markets is to go digitalize and we have already built that solution. And more-and-more clients are adapting to the same system what we have built.
So if you actually ask me, I would say that we are far ahead of the competition in terms of the technology what we have built, not just in terms of the solution, but I would also say that in terms of the benefits or the services what are there is also in terms of — we are not just limiting ourselves to the travel today. We have also gone into lifestyle. So this is a biggest differentiator and we do not see any such threat from or any other competition.
Kaustav Bubna — Analyst
So I had another question on — I had another question on the risk. So if you look at two aspects of risk, one is, so there is this high — so out of your INR1,200 crores of revenue, your main business is from lounge access, right? So is there any way you could tell me that out of this INR1,200 crores of revenue, how much of the top-five lounges contribute, right? And which are those top-five lounges? Is there any way you could — so that’s the first question.
And then the second question is on risk is there has been this concern and I think I’ve heard it in your call also before, where you — people are — analysts are asking — people are asking, if GMR and Adani set-up their own lounges, how does this impact the business of Dreamfolks? So could you address all these questions have asked? Thanks.
Liberatha Peter Kallat — Chairperson and Managing Director
So I would say that it’s a mix of numbers coming from all the lounges. So there is nothing called the top-five locations because every different client has a different set of requirements in terms of the networking what they require, right? So I will not be able to actually tell you which would be the top-five in terms of the contribution, right?
Now secondly, coming to your partners like the ones you mentioned, I would say that even if it is a lounge from GMR or any other operator, they would need volume or revenue coming in, right, because they are just building the infrastructure, but to run the lounge, they would need the customers and most of the — I would say that Greenfolks is the one who is driving the majority of the volume to all these lounges. So the thing is that there is no such because we become as a partner for them to work together.
Kaustav Bubna — Analyst
But then does your margin and your revenue for that particular Lounge fall if you’re handling a lounge and promoting a lounge of a third-party other than Adani or a GMR?
Liberatha Peter Kallat — Chairperson and Managing Director
It is the same model, whether it is run by Adani or if it is run by any other operator, the model is the same.
Unidentified Speaker
We don’t own or operate.
Liberatha Peter Kallat — Chairperson and Managing Director
So anyways, there are no lounges that are managed or run by Dreamfolks. All these lounges are third-party owned. So it makes no difference for us, whether it is owned by GMR or if it is owned by any other operator.
Kaustav Bubna — Analyst
Yes, yes, I understand that. I was more talking about bargaining power because they are large entities, but anyways understood. Understood. Thank you.
Operator
Thank you. And we have our next question from the line of R from MAS Capital. Please go-ahead.
Unidentified Participant
Yeah. Thank you. Thank you for the opportunity. So India’s aviation sector is witnessing like a consolidation right where and Tatas have kind of literally dominated 85% of the domestic market. Now given a citizen portion of those revenues linked to the footfalls with tie-ups with airlines. Do you see a plan to insulate any airline-driven pricing pressure or any potential renegotiations or partnerships given this interesting dynamic that is shaping up.
Balaji Srinivasan — Executive Director
So frankly speaking, I mean, you know two airlines operating in India versus five airlines actually doesn’t change or rather to that extent doesn’t impact us at all because we are driven by the industry. I mean air traffic as such as opposed to a combination of one company along with the other or the interplay between them. So to that extent, it doesn’t matter because ultimately whether you choose an airline A or an airline B, the consumer sitting inside the plane is my consumer.
So really do not impact. I mean the merger or 85% contribution of the two.
Unidentified Participant
So the reason I was asking that question because India is obviously in its very early stages, but if you see the US, right, you have these giant airlines where they run their own lounges and the same thing can come to India. And that’s why I was hinting at where if the Tatas and Indigos of the world decide to enter this business, they have the 85% market-share. So have you thought about that as a risk?.
Liberatha Peter Kallat — Chairperson and Managing Director
So if you actually see even in India, there were airline lounges, right? There were Air India lounges, there were jet and in past even the lounges were also there. But these were primarily cater only to their airlines, which would be for their business plans or the loyalty customers, right? However, we are not catering to that segment. We are actually catering to a segment which is non-business class, okay. So it is primarily a benefit which has been given by the banks or by I would say BOTAs or the enterprises who are actually driving this program.
So it will actually not impact or there is no-risk in terms of if there are airline lounges coming. Secondly, just to give you a brief that the way right now there are changes happening in India market in terms of the privatization. So if you actually see more all these airline lounges are actually out now and because they do not want to have multiple lounges, there are only one lounge or one or match. There will be two lounges, which would be dedicated, one would be just for the business-class or the first-class lounge passengers and one is dedicated to the loyalty card holders, which is primarily the one what we are running.
So even if there are these airline lounges coming in, just to tell you that there is no threat for Dream,
Unidentified Participant
Sure. I appreciate that. One last question. So Dreamfolks, have been looking at international markets, particularly Southeast Asia and the Middle-East. So what challenges have you encount — encountered in expanding beyond India? Are global players like Priority Pass or Plaza Premium becoming a hurdle in establishing the partnership abroad.
Liberatha Peter Kallat — Chairperson and Managing Director
So as I told you that when we started in India as well, there were players like Priety Pass existing and there were other players also existing. The way we entered the market was creating a differentiator in India market and that is actually helping us in a similar way to bring up in the other regions as well, right? And the — I would say the way Dreamfolks is building and growing is in terms of enhancing the solution, not having a stabilized or you know, not improvising the one which we have built maybe 12 years back, we are improvising and we are upgrading ourselves and understanding what the client requirement is.
So I don’t see that it is a challenge from the competition there. But I would say that you know the gestation period in terms of onboarding any new client, especially a bank is a longer time because already when there is a relationship, it takes time for anyone to actually migrate it to a new partner. So that is the reason that it is taking time. Secondly, we are already working with the, I would say, the international brands like the network providers and we are very closely working right now in-building the solution for the global market as well for them.
Unidentified Participant
So thank you, ma’am. Thank you.
Operator
Thank you. We request participants to restrict to one question per participants. We have our next question from the line of Kunjan from Ventures. Please go-ahead.
Kunjan Ganatra — Analyst
Hi, good evening. Sir, my question is that for facilitating airport lounge access, we are diversifying from banks to other enterprises like airlines, OTAs. So what would be the contribution of these enterprises currently? And second, that we have also started offering membership ranging from 7,000 to-1 lakh Dreamfolks membership. So how is this picking-up? And is this a similar model to Priority Pass membership model?
Sandeep Sonawane — Chief Business Officer
Okay. So I’ll answer the first question. In the next four to five years, we envisage the business coming out of enterprise would be close to 20% on our top-line. So that come — that continues to be our model and that will help in terms of also improving our margin?
Kunjan Ganatra — Analyst
Yeah. No, but what I’m trying to ask is that even within facilitating airport lounge excess, which is currently like 93% of our revenue, how much is our dependence on banks and what is the proportion of other OTAs contributing, other enterprises contributing?
Balaji Srinivasan — Executive Director
Yeah. So yeah, close to 95% of our business, to be frank with you is coming from banking or networking type of client. And as Librita mentioned, wherever we want to sign a client, one, it takes little longer time. Secondly, what happens with enterprise unlike a bank, enterprise is there are many enterprises and every single enterprise gives us much smaller revenue as compared to a bank client. A bank line once it comes, gives you a larger revenue as compared to enterprise.
Secondly, to answer your second question on the Dreamfolks club membership, see, the idea of launching the Dreamflow — Dreamforce Club membership was still two, threefolds. One was to tell that it is not only one service that is available with Dreamfolks, which is loud, but a bank or a B2B client, even if for that matter enterprise can actually package the entire services and can offer to the consumer, point number-one.
Point number two, it also helped us in terms of making our various services discoverable to the clients. I mean, clients still know us as a lounge provider. So the entire objective of that was to really tell the bank as a client or enterprise as a client that we have much, many more services than the loans. So the idea then also was not to really go B2C, but the idea was to ensure that our B2B clients through our website know that these can be packaged, these are available at these kind of cost and there are many more services other than the launch.
And that we stick to that. And to answer the question, frankly speaking, we are not even tracking in terms of what is the kind of volume that is coming out of this because it is not intended to really drive volumes for us from B2C. It is B2B only.
Kunjan Ganatra — Analyst
Okay, that helps, thank you
Operator
Thank you. We have our next question from the line of Sheyansh Mehta from Equirus. Please go-ahead.
Shreyans Mehta — Analyst
Yeah, thanks for the opportunity. I missed on the reason for the lower gross margin for this quarter. Can you please repeat the same?
Liberatha Peter Kallat — Chairperson and Managing Director
You are not audible.
Shreyans Mehta — Analyst
I’m saying I missed on the reason for the lower gross margin for this quarter hello
Balaji Srinivasan — Executive Director
So we did menual now that you know the you know that banks are going and increasing their threshold, the spend threshold for the consumers. I mean a case in point would be that a very known bank, which had a limit of INR35,000 per quarter increased it to 75,000 per quarter and that actually reduced dramatically the volumes. And when all these kind of changes happen,, you would really appreciate the kind of volumes that we are managing, there is definitely a change in the volume mix that happens. And because of which there is always this slight correction that happens in terms of gross margins, which are temporary.
Shreyans Mehta — Analyst
Got it. Got it, sure. And one more from my side, how should one look for FY ’26 in terms of revenues?
Balaji Srinivasan — Executive Director
In terms of growth you were asking?
Shreyans Mehta — Analyst
Yeah. Yeah.
Balaji Srinivasan — Executive Director
FY ’26, we are — I mean, we want to really see this year passing by. We are already at the fag end-of-the 3rd-quarter has happened. 4th-quarter, I think, yeah, I mean, you’ve already got an indication in terms of the growth that we have. We are at 14.5% revenue growth as far as top-line is concerned, so first-nine months,
Shreyans Mehta — Analyst
Right, right. So I mean, as pointed out, the industry growth is expected at 6% to 9% will definitely outperform it, right? That’s the way to look at it?
Balaji Srinivasan — Executive Director
Yeah. Yeah, we are already — if you were to look at both, I mean, you know which in her speech also mentioned that the air traffic growth as well as the credit card growth is much lesser this year than what we are growing at. So we are definitely outperforming both the vectors on both the vectors.
Shreyans Mehta — Analyst
Got it. And. And two clarifications. One, I mean in terms of employee cost, should you assume this is the peak and probably this would be the run-rate going-forward? And secondly, in terms of our other income, this quarter seems to be on a higher side.
Balaji Srinivasan — Executive Director
So, yes, employee cost more or less Shriansh, you should be in similar life unless or until there is — I mean business-as-usual. I mean that one. Secondly, in terms of what is the
Shreyans Mehta — Analyst
Other income?
Balaji Srinivasan — Executive Director
So GR did mention that at this point in time, we had a very good cash-flow and obviously, whatever you are seeing is the treasury income that is coming through. I hope that we continue this and give you better results with this. So — but that’s a very small portion of that.
Shreyans Mehta — Analyst
Got it. And I mean, one if I can I mean squeeze in one more if just in terms of cash flows, I mean, what is the reason? Is it the data days which has helped us during this quarter or it’s something else as well in terms of creditors where we
Giya Diwaan — Chief Financial Officer
Both Shreyan, in terms of debt is that creditor days as well as debtor Days actually, which was slightly off-track in the month of September, which would bring in the efficiency now in this quarter.
Shreyans Mehta — Analyst
Got it. Got it. That is from my side. Thank you and all the best.
Operator
Thank you. Thank you. Ladies and gentlemen, that would be the last question for today. And I now hand the conference over to Ms Lebrata for closing comments. Over to you, ma’am
Liberatha Peter Kallat — Chairperson and Managing Director
Thank you all for joining our earnings call today. We hope your queries have been answered. For any further queries or information, please contact our Investor Relations team at EY. On behalf of the company, I thank all once again for your time and participation. Do take care of yourself and goodbye. Thank you.
Operator
Thank you. On behalf of Dream Folks Services Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines