Dreamfolks Services Ltd (NSE: DREAMFOLKS) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Liberatha Kallat — Chairperson and Managing Director
Sandeep Sonawane — Chief Business Officer
Balaji Srinivasan — Executive Director and Chief Technology Officer
Shekhar Sood — Chief Financial Officer
Analysts:
Diwakar Pingle — Analyst
Harshit Khadka — Analyst
Shreyans Mehta — Analyst
Unidentified Participant
Shrey Gandhi — Analyst
Navin Koushik — Analyst
Kushal Mondal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Dreamfolk Services Limited Q4 and 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 n 0 on your touchstone phone. I now hand the conference over to Mr Dewakar Pingle from Ernst Young LLP. Thank you and over to you, Mr Diwakar.
Diwakar Pingle — Analyst
Thank you. Good evening, everyone. Welcome you all to the Treamfolk Services Limited Q4 and Full-Year FY ’25 earnings call. Today from management, we have with us Mr, the Chairperson Managing Director; Balaji Srinivasan, Executive Director and Chief Technology Officer; Mr Sandeep, the Chief Business Officer; and Mr, the Chief Financial Officer.
Please note that the company has uploaded the financial results, the investor presentation, the press release and both the stock exchanges in the company’s website. Please do note that anything said in this call, which reflects our outlook for the future or which can be as a forward-looking statement must be viewed in conjunction with the risk the company faces.
This conference call is being recorded and the transcript along with audios the same will be made available in the website of the company’s exchanges. With that said, I’d like to hand over the call to for opening remarks., over to you.
Liberatha Kallat — Chairperson and Managing Director
Good evening, everyone, and thank you for joining us today for the Services Limited Q4 and FY ’25 earnings call. We truly appreciate your time and continued interest in our company. Earlier today, we announced our financial results for the quarter and the year ended 31st March 2025. The detailed financials, investor presentation and press release have been made available on the stock exchange as well as on our website. We hope you have had the opportunity to review them.
Before I begin, I would like to take the pleasure to introduce you to our new CFO, Sheikar. Brings in two decades of global financial leadership experience across listed entities, multinationals and high-growth companies. He has a stellar track-record in strategic planning, IPOs, M&A, ESG, Investor Relations and building financial resilience.
You will get an opportunity to interact more with him over the coming period. FY ’25 was a year of consolidation of Greenfolk as we saw some structural changes in the industry we operate in both from a revenue and cost perspect perspective. The changes did have a short-term implication on the growth and margins, but I’m quite proud that the team at Dreamfolks handled these challenges in an admirable fashion and we finished the year with revenue of INR1,292 crores, which is a growth of 14% from the previous fiscal.
Notable, this growth that of our two main revenue drivers, domestic air passenger traffic and the number of credit card issued, both of which experienced growth rates between 7.5% and 8% in FY ’25. For some of you who are checking in our new — in our checking in Q1 story, it is important to mention that during this fiscal, a large number of banks migrated to a spend based model on their credit cards to our allowance services as opposed to a blanket usage.
This had a short-term impact, but our volumes since have been quite steady. This has been possible due to our diversification strategy of adding services other than lounges. A focused approach to adding clients other than banking clients and also welcoming clients who were with competition earlier.
During the year, more than 10 of our banking clients implemented the spend based model using our technology platform. Our superior technology platform is the reason for Dreamfork’s permanent position in the industry. Our long-term vision is to be considered as a dominant player not only in the traditional travel services, but also to establish ourselves as the leading lifestyle services advocator in the country.
And I will talk about it little later in my remarks. The ongoing adjustment by the bank to raise the minimum spend pressure on cars and modify that program to focus on spend based usage has resulted in gross margins to 11.6% in FY ’25. We ensured reminded within our previous communicated guidance of 11% to 13%.
We believe that with the addition of newer services with better margin profile, this could see an uptick over the medium-term. Barring any new macro issues, we do not have a fair sense of visibility for the lounge services as well as our plans for the new services, which form an important part in our new strategy for the next five years.
The certain headwinds experienced during the past year made us pause and reflect on the strategy for the company. And I’m pleased to state that we have a clear vision for next five years. The plan envisages consolidating the existing lump services while exponentially adding other new services, which currently form 7% of our revenue.
Our aspiration is to scale this contribution up to a third of the revenues in the next five years through a slew of new and differentiated offerings. With this strategy in mind, our aspiration is to grow the revenue to more than double in next five years with profitability margin also seeing a substantial increase.
How do we intend to do this? Key element of the strategy is by continuing our focus and prioritizing diversification across high-potential services, India Airport lounge and adding enterprise clients. Enterprise clients would be a key addition to our growth strategy along with two other growth drivers, access to members, only Club and exploiting pay-end use model across loyalty platforms and other credit and debit cards.
You would know that we have already taken the first step-in line with this strategy by adding major services such as call scales and lessons and railway lounges as well as meat and treat services. Throughout the year, we have added marquee enterprise clients belonging to different industries like Lake, Amazon and others.
During the year, as part of our strategic planning, we have also expanded our skilled employee base, who have helped us in onboarding 30 plus new clients and six new services. Our objective is not only to drive growth, but also to enhance resilience by expanding our operational footprint and aligning more closely with the evolving expectation of the customer.
All of this is well-supported by strong industry tailwinds. India’s travel industry is likely to grow at 12% to 15% annually for the next five years. With domestic travel increasing at 12% to 13% and international travel at an rate of 18% to 20% due to the rise in short-haul destinations. Also, applications in India rose by 11% in 2024, according to BSS Global.
One thing as luxury travel, travel is now recognized as a key part of personal wellbeing and a way to ensure unique experiences. At the same time, the travel industry is expanding due to increased domestic traffic, better domestic connectivity and rising premium travel drives the greater demand for airport services.
Credit card spending has also hit record-high with India witnessing robust growth in credit card spending during FY ’25, with total spend growing by 15% to reach an all-time high of INR21.16 lakh crore, according to RBI. The growth of credit card and travel industries is set to benefit with rising card usage, especially among premium travelers, banks are adding more airport boosting demand for drainforce services.
In conclusion, I would like to emphasize our commitment to diversifying our business model in order to establish our services as a leading aggregator of travel and lifestyle services. We are now at a point where I see good stability coming through and there are several factors, which gives me the confidence in our ability to achieve promising and sustainable growth in the medium-term.
By leveraging our robust technology — technological structure and esteemed client base, we will strive to fortify our leading position in airport and lifestyle services. With this, I would like to invite Sandeep to give us an update.
Sandeep Sonawane — Chief Business Officer
Thank you,. As we look-forward with intent and clarity, I’m pleased to share how Dreamfolks is progressing on its journey of transformation, expanding our global footprint, strengthening our client ecosystem and driving diversification with agility and purpose. Our diversification strategy continues to take shape.
A notable initiative this year was introduction of coffee at malls as a service at almost 83 outlets like Costa Coffee, Team, Barista and others. Given its low-ticket nature, this initiative enables partner banks to extend meaningful lifestyle benefits to customers who may not meet the spend threshold required for lounge access. This not only creates a cost-effective alternative for banks while retaining customer satisfaction, but also increase their spends . Further, as these coffee outlets are widely spread across Tier-2 and Tier-3 cities, this move significantly increases Dreamfork’s presence in these geographies, which positions us very well for our sustainable growth with new client segment contributing to an expanding and diverse portfolio. Client acquisition remains a key focus area for us. This quarter, we successfully onboarded three marquee enterprise clients, reinforcing our strategic partnership approach. Notably, these enterprise clients are offering our wide variety of premium services to their customers. Through these partnerships, we are enhancing our B2B and of course B2B2C presence, expanding our End-User engagement. On the banking front, we have solidified our alliances with new programs with leading players like IDFC, Yesbank, RBL Bank, Bundan Bank to name few, underscoring the market’s confidence in the value we bring to the ecosystem. We also continue to enhance value for our premium customers by providing access to 3,000 plus members-only social club across 150 destinations worldwide. This addition further strengthens presence in lifestyle services, unlocking new growth opportunities and expanding our footprint across diverse customer segments. We also done — we have also done collaboration with FMB outlets at the airport terminals and highways, which have helped us scale our offering. We now provide access to 40 domestic golf clubs in India and around 600 globally through our active partnership with top card issuers and aggregators. Our core business, domestic loans remains very robust. Our total domestic count remains 100% for the airports with 75 lounges and railway with 14 lounges. These developments not only extend our physical presence, but also enhance the consistency and the quality of travel — traveler experience across platforms. On the international front, we offer access to wide network of almost 800 plus airport lounges, ensuring travelers can enjoy comfort and convenience wherever they go. During this quarter, we have strengthened our partnership with Plaza Premium, resulting in addition of over 100 new lounges and food and beverage outlets in various countries. This expansion not only enhances our global network, but also enriches the travel experience for our users, providing them with more options to relax before their flight. All these efforts and initiatives that we have taken over the course of last year have started bearing fruits. Our services other than the launch India launch now contributes close to 7% as far as FY ’25 revenue is concerned. In summary, Dreamforce is just now is not just growing and it’s evolving and it’s not growing, but it’s also evolving. Through a focus scalable and integrated delivery model, we are laying the groundwork for long-term leadership in the travel and lifestyle space. Over to you,.
Balaji Srinivasan — Executive Director and Chief Technology Officer
Thank you,. I’m pleased to share how our continued investment in cutting-edge technology and strategic innovation is not only enhancing our operational backbone, but is also significantly elevating the client experience across our platform with continuous new updates. Our focus has been on harnessing the power of cloud infrastructure and digital ecosystems to create a more transparent, agile and secure environment for our clients.
By leveraging advanced cloud solutions, we’ve built a robust framework that enables real-time collaboration, seamless scalability and faster feedback integration, which are key attributes for navigating today’s dynamic market conditions. In addition to the solutions that we have for the banking industry, we are also seeing good adoption of our enterprise and travel solutions over the last few quarters with multiple clients going-live.
Our proprietary tech platform has become a strategic tool to increase our clients’ ancillary revenue, act as a differentiator with the consumers and delivering tailored service packages that align precisely with the consumers’ evolving needs. This is more than just a tech enabler, rather it’s a user-centric experience that is intuitive, insightful and fictionless.
We’re also expanding our service portfolio with exciting new integrations for Social club, highway dining, coffee at malls, excess baggage and baggage. We continue forging strategic partnerships and integrating bespoke offerings that elevate the End-User journey. Whether through banking benefits or exclusive digital services, we are enhancing the value proposition for travelers and business clients alike.
Our new pay new solutions allow existing and new clients to leverage their traditional customer-base to get additional benefits at exciting discounts beyond our complementary offerings. We’ve also made significant headway in infrastructure flexibility. By embracing asset type strategies and real-time visibility, we are unlocking value across a spectrum of consumer benefits, be it via traditional channels, digital apps, kiosks or online platforms.
This omnichannel approach ensures a consistent and smooth experience across all touch points. As we optimize expenditure and sharpen our focus on utilization, we are also enabling smarter and data-driven decisions for our clients. Our deep integration within client ecosystems allows us to tailor solutions that drive both efficiency as well as measurable returns, creating a compelling value narrative for our stakeholders.
In summary, we remain committed to being the technology partner of choice, redefining industry benchmarks for innovation, operational excellence and a relentless focus on client success. Our journey forward is guided by a clear vision to architect the future that’s optimized, resilient and firmly client-focused. Now I will hand over to Sheikhar for an update on the financials for the year ending 31st March ’25. Over to you, Shekhar.
Shekhar Sood — Chief Financial Officer
Thank you, Balaji, and a very good evening to everyone. I will begin with FY ’25 financial highlights. The revenue for FY ’25 was at INR1,292 crores, showing a 14% increase from INR1,135 crores in the previous fiscal year, resulting from two of our revenue growth drivers, domestic air travel and credit card volumes, which recorded a growth of 7.5% to 8%.
Gross profit increased to INR150 crores, up from INR137 crores in FY ’24, while achieving gross margin of 11.6% in FY ’25, in-line with our given guidance of 11% to 13%. Adjusted EBITDA for FY ’25 was INR102 crores and adjusted EBITDA margin was 7.9%, in-line with the guidance of 7% to 9%. The company’s net profit was at INR65 crores and PAT margin was at 5%.
The earning per share for the full-fiscal year 2025 stood at INR12.2 compared to INR12.6 in FY ’24. As of, 31 March 2025, our net-worth is INR301 crores, up from INR236 crores in FY ’24, showing our sound financial health. And cash-and-cash equivalents, including investments in securities for FY ’25 was at INR148 crores, up from INR101 crores in FY ’24.
Now moving to the highlights for the quarter. The quarterly revenue reached INR314 crores, marking a 12% rise from INR281 crores in Q4 FY ’24. Gross profit was INR35 crores at a margin of 11.2%, while adjusted EBITDA stood at INR25 crores at a margin of 7.7%. Net profit for the company stood at INR15 crores.
Earnings per share for Q4 FY ’25 was INR2.8 versus INR3.3 in Q4 FY ’24. Our strategic decisions in the form of spend based implementation for clients, manpower expansion are foundational steps. While they may lead to a more major growth in the short-term, they position us for significant and sustained acceleration in the years ahead. With that, I request the moderator to open the floor for questions. Thank you.
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 press R then one on your touchstone phone. If you wish to remove yourself from the question queue, you may press star then to. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles our first question comes from the line of Harshit Kardaka from RoboCapital. Please go-ahead. Are you audible?
Harshit Khadka
Yes, sir. Please go-ahead. Thanks for the opportunity. Sir, what would your top-line growth and margins look like for the next year?
Shekhar Sood
See, I think we cannot give you in terms of the actual number for the next year, but I think Librita did mention about the guidance that we have given for the next five years, both in terms of top-line. I think she did mention about growing the top-line by 2.5 times in the next five years. So I think I would reflect that to that number.
Harshit Khadka
All right, sir. Thank you. Sir, I wanted to know-how are your relationships with the banking partners and how effectively are you able to penetrate into the base, if you can attach a number to it.
Shekhar Sood
Okay. Relationship with banks, I know they remain very, very strong. The — and the proof of the pudding is, I think Balajeep mentioned that almost top-10 banks are now deeply integrated with us and that’s the kind of trust that they have shown. So I think the relationship is only growing stronger as and when we are actually moving and probably solving quite a lot of problems of the banks through technology and mix of services.
So I think as far as that is concerned, I think that is there. What was the second part of the question, sorry?
Harshit Khadka
How deeply can you penetrate into the customer-base?
Shekhar Sood
See, I think wherever we work, the banks run basically the entire program with us. So it’s not that when we work or when we show a client we are working for, let’s say, one variant of a credit card or something like that. We typically would work with the entire portfolio. So let’s say, if you work with a debit team, the entire debit portfolio will work with us or the entire credit portfolio will work with us or both typically most banks.
So it is not a particular percentage if we typically will show you the name of a client, it would be basically 100% of the portfolio of that particular credit or debit or whatever product you’re talking about.
Harshit Khadka
Thank you.
Operator
Thank you. Your next question comes from the line of Shreyansh Mehta from Equirus. Please go-ahead.
Shreyans Mehta
Yeah. Thanks for the opportunity. So my first question is, I mean, as you mentioned that probably we are looking at doubling the revenues for next five years, which implies a CAGR growth of 15-odd percent year-over-year. But if I just see ’24 over ’25, the domestic air traffic has grown by to 8%.
Our top-line is up by 6. 11%, 12%, but profit is on a flattish note. So how do I take it forward in terms of the profitability over next five years?
Shekhar Sood
So Shreyan see, there are two, three elements which we have been consistently telling. While I understand the traffic growth is almost in the range of 10%, whereas our revenues are not 12%, but growing at 14%. At the same time, we did mention that we were at the inflection point.
We wanted to invest a little bit in terms of manpower for capturing the future growth, whether it is global expansion, whether it is going and moving to different types — targeting different type of clients for which we wanted number of people because the GTM doesn’t remain the same. The moment when you target enterprise business, it requires more number of people.
And we were aware and that is exactly the reason why we were — all the while I mean, starting from quarter one of this year have been giving a guideline of EBITDA margin between 7% to 9% and we are well within that. So you are right, in terms of short-term, I think because of also the spend base program which the bank implemented in the last one, one and a half year or maybe two years.
I think what has given that share to us is that we have a fair visibility now of looking at the patterns as to how the banks are going to move-in terms of implementing spend base program. So yes, to an extent, it was expected that PAT would be in the region, which you are mentioning, which we always gave the guidance.
But I think now as I said, we are in a far better position to predict in terms of how the banks are going to respond to the — to the costs. And yeah, cost pressure. So I think, yeah, I would say that we have crossed that period and we have become far more intelligent and we have certain pattern now, which we are using in terms of giving you the next Five-Year guidance guidelines.
Shreyans Mehta
Got it. So would it be fair to assume worse in terms of gross profit or the margins would be likely largely over and this is you know the least I mean we can expect and from here on there could be surprises, but this could be the worst.
Shekhar Sood
Yeah, I, I should say that confidently the worst is over. Also because of the reason which I told you, it doesn’t mean that banks will not probably further go and increase the threshold of the consumers from the spend base point-of-view. But as I mentioned, we at least have a developed a pattern now as to how the banks are going to move. So we have better information than what we had. Yes, so you can expect better margins.
Shreyans Mehta
Got it. Got it. Sure. Go to your other. And secondly, in terms of cash-flow.
Operator
Sir, you’re sounding a bit if you can just adjust the mic. Thank you.
Shreyans Mehta
Sure. Is it audible now?
Operator
Yes, this is much better. Please go-ahead, sir.
Shreyans Mehta
Yeah. Secondly, in terms of cash flows, if you see last year, year we were on the same number and this year also, but the operating cash flows improved. So what is — I mean, any specific reason why operating cash flows have improved?
Shekhar Sood
See, I think we managed — we were actually — if you were to look at our Q1, Q2, we were a little off color, but I think the entire sales team in the last Q3 and Q4 has really done a good job in terms of one, of course, the receivables. And as I said, Shreyan, that we know a little bit of pattern now better and we have understood the pattern better. I think overall, it is helping us in terms of improve all the line items of the P&L. So yeah, I think that’s one big reason.
Shreyans Mehta
Got it. And lastly, if I can, one of our closest competitors, you know, the contract has been asked to, you know, close-down. So will — I mean, what impact will it have on our part of business, be it domestic or domestic into international.
Liberatha Kallat
So Srian, that actually is an advantage for, right? So it’s the competition. So I would say that, yes, that’s an opportunity. And also if you have gone through the presentation what we have uploaded, there are most of these banks which were with the competition and which have actually now migrated to.
But this was much before you know, they got the closure letter.
Shreyans Mehta
Got it, got it. So just for a better understanding, will it have a positive impact because largely domestic we have the large part of market-share. But in international probably where we have tie-ups with domestic banks, that’s the part which you know we will see some improvement. How should one read into it.
Shekhar Sood
So I think the what what the — so this conversation that we’re having is basically for the scope of the domestic transaction. So international is fairly independent of this.
Shreyans Mehta
Okay. Okay. Got it, got it. Sure. That’s it from my side. Thank you and all the best.
Operator
Thank. Your next question comes from the line of Niraj from Prosperity AMLP. Please go-ahead. Please go-ahead.
Unidentified Participant
Hello. Hello. Yeah, yeah. Thanks for the opportunity. Madam, my question is related to 90% of the income comes from the airport launches. See, last year, there was a no volume growth. It is 10.9 million versus the 11 million in FY ’24 in-spite of increase in the air passengers and it is — it may be due to the change in the excess benefit to card holders.
So in that connection, I would like to know what step company is taking to improve or to increase the volume because the air passenger is increasing credit card or card holders are increasing, but the volume is not increasing. So what specific step company is taking to increase the volume?
Shekhar Sood
Yeah, absolutely. You’re right. Almost — volume almost remains same versus last year, that idea. That the reason you are aware that there is a lot of spend base program that is happening. However, there are two, three things that are being done at our end. One is the acquisition or getting the competition client, which Balaj just mentioned.
We just got — and I did mention about the names also the banks who were with competition, we got them here. However, the volumes were a little comparatively smaller, point number-one. In terms of steps, what we are taking is we are adding a lot of other services and that is where I think our confidence for the next five years that is indicated in the in our whatever five years track plan shows that we will be aggregating and we We continue to aggregate quite a lot of services, which are not related only to the air traffic growth. And that gives us the confidence that growth, which is again untapped for us as a company should actually help us in terms of insulate us from the spend base program, I mean decline or maybe the flat growth in PACs, which is on account of spend based program. Yeah. So increase in-service on one-side, which is not dependent on-Airport. And the second is, of course, whatever clients that competition has, I mean, our effort will always be there to get them in our fold. So yeah. And sir, enterprise, I mean, the moment when we go beyond the four walls of airport, enterprise as a client also becomes very big and we are betting big. However, it takes a lot of time for us to really build that kind of scale with enterprise. So in a coming mid-term, you will see the difference. And that is why we are confident that while the lounge as a service remains only 7%, but strategically, this will reduce significantly. So our dependence on lounge airport lounge will significantly reduce over the period of next three to five years.
Unidentified Participant
Sir, but it is mentioned in the presentation that the other service will provide — currently it is providing the contribution of 7% to revenue and it will increase up to 15% in the coming three to five years’ time. But then also the 85% is the major portion of the revenue, which comes from the airport launches.
And in future, further the bank will increase the further stand or threshold limit to access, then we must be some active — we should take our active action to increase our — to maintain our volume — current volume. See, last year we meant that we succeed to maintain even 10.9 million is equivalent to 11 million.
So what step, I don’t understand still the most step company is taking, you mentioned that you have acquired the one competitor that’s — but what other step? Are we the card holder to access the launch by anyway?
Liberatha Kallat
So there are couple of things about as a company we are doing, okay. Now the spend base impact, yes, there is there. But if you actually see there is another model what as a company, we have also started because the thing that the awareness of lounges had increased anyways.
Now there are people who have actually got used to using the lounges. So what we have built is there is something called pay and use, right? So this is one of the other models that wherein even if the banks are reducing the benefit, there is another way that customer can still use it. So pay and use is something which is actually going to be a one of the revenue stream for us.
Secondly, in terms of the client base as well, the thing is that it’s not going to be just the banking clients what we are focusing. It’s not just going to be the credit card. As we said that we are also going to target and we have already targeted enterprises. In FY ’25, we have already signed-up with 30 marquee of enterprise clients, which includes the OTAs, which includes the travel agents and also the loyalty companies and the other enterprises as well.
So the thing is that we also understand that, yes, the spread needs to change and that is the step what we have taken. Secondly, yes, in terms of as Sandeep was mentioning that it is not just the client base, but yes, in terms of the other services as well. Now for example, it is not just going to be outside the airport, but within the airport itself, there are other things what we are building up.
It’s like the F&B, it’s going to be spies, which is already there, there is meat and. There is something more which we do not want to announce right now, but again, it’s going to be related to the travel. So that is there. Secondly, if you actually see that in terms of lifestyle services as well, we have come up with a social club.
Now we find that social club is also going to be something very premium offering to the card holders. So yeah, these are the steps what as a company we are trying to do in terms of target and target the customers for using not just the lounges but also the other services as well.
Unidentified Participant
Okay. Okay, madam. Thanks for the retail answer. Sir, madam, my last question is, the company has increased the staff strength and the increase — added the new talent and so the employee cost has increased last year. But when this cost will help the company to increase the profitability because currently the GP has not increased because the volume was not gone up, now the employee cost has increased by INR10 crores when the company will make more profit than INR10 crore what we are spending on the employee, when they will start contributing to company’s bottom-line?
Liberatha Kallat
So if you actually see, initially the company was just focusing on two set — I mean, I would say that one-side was just the banking client and the other side was more of the travel, which is the airport lounges, right. Now if you actually look at it that the focus is getting into enterprises and also into other services.
Initially, yes, employee cost was low because the industry was very limited. And yes, with the — I would say the few employees, we were able to manage the whole business. But right now when we say enterprises, the industry is watched. It is not that it is — there is no limitation here. So if as a company, if we have to target every industry player in the market where we know that, yes, there is an opportunity, I will want to have you know feet on-field to actually target these clients.
So that is one of the reason that the employee cost has increased. Now it is not that the moment you actually hire the employees, immediately we start seeing the results. It usually takes time. I mean it’s to close one single client, whether it is a bank or for that matter and the dual time to actually get a client on-board takes almost one year to somewhere around three to four years as well.
So there is because — and especially I’m talking about the volume clients, right? So — and — but I would say that there are smaller clients where, for example, there are travel agents. Now there are 250,000 travel agents across India. Now to target these 250,000 travel agents, I will require a team, right?
So this I’m talking in terms of the sales side. But when it comes to the service side also, there are 20 different services what we have onboarded. Now for this 20 different services, there are different brands where we need to target them. And for that, again, there has to be a team in-place to also take care of the onboarding side. So the thing is that, yes, right now, the investment is there, which we have actually invested on the employees.
And I would say that in next four to five years, you will actually start seeing the results from all these services or I would say the investment in terms of whether it is other clients or other services will start coming in.
Unidentified Participant
So from next year, it will not be so steep hike in the employee cost.
Liberatha Kallat
I would say that — sorry.
Unidentified Participant
So from next year, there will be no steep hike because it is around INR42 crore rupees in 30 — FY ’25 from INR28 crores. Okay, okay. Okay. Okay. Thank you. Thank you.
Operator
Thank you so much, sir. Okay. Our next question comes from the line of Panjwani from 40 Science. Please go-ahead.
Unidentified Participant
Thank you so much for the opportunity. I have two questions. One is, I am very new to the company. So I just want to know-how does — what is the business model? How do we make money? That is question number-one. I am hearing about enterprise plans. I know that the company is the launch operator, but I don’t know about the enterprise business. So if you can please throw some light on these two. Thank you.
Shekhar Sood
I — okay. So I hope that others have patience to understand this. So how we make money is, you know, we are aggregator. We do a lot of aggregation of all the services. So for example, all the lounges, whether it is in India or global, we aggregate these lounges. We — we agree on a rate with every single lounge operator.
We have the agreement with them. Suppose I agree with an agreement that every single card customer goes into the lounge, the — I will pay the lounge operator say maybe INR100. And what we do is when the — when the card holder who has this benefit goes and aways the facility and goes into the lounge, then I take INR15 from the client.
So this is how I make the margin of say 15% on INR100, which I gave an example. And you know, this is how the car companies or the issuers, the issuers want to sell more-and-more number of credit cards and by virtue of doing that, they give you these kind of benefits on the card. And we enable through our technology this benefit, which is embedded into the card. So this is our business model, largely. Right. If you are not understood, please feel free-to get-in touch with Diwakar or for that matter, yeah, Vipur from our team and we will have this been answered. As far as the enterprise is concerned, our enterprise is like any enterprise. Let me give you example, Coca-Cola is an enterprise — is an enterprise or JK Cement is an enterprise. So in all these enterprises, there are a lot of stakeholders, right, from the salesman to a to maybe employees for that matter or even for that matter distributors, agents. Imagine if this enterprise want to give — it’s some kind of a reward or some kind of incentive for driving loyalty or whatever, they give these kind of services which are provided by Dreamforce in the form of a say a car or Dreamforce membership car and then the consumer can really avail these benefits as and when the consumer feels. So we — so that’s the kind of model that we have for enterprise. And enterprise is like every single company.
Unidentified Participant
So enterprises, you are giving this rewards which are there, which is outside the airport, right, not in the airport.
Shekhar Sood
No, not only — so both inside the airport also and outside the airport because ultimately you and me are also employee of some company and our employer, if they give this benefit, I’ll be happy.
Unidentified Participant
Right, right. Right. And last question on this is, so how many — I would say, can we simplify and say enterprises like any other corporate, right? I mean basically or is there any difference?
Shekhar Sood
Yeah. Yes.
Unidentified Participant
Okay. So it’s just a different name. Okay. And how many such corporates or enterprises have we enrolled on as a customer?
Liberatha Kallat
I think we can’t give so much of details to you right now so if you can have a separate call over this because.
Unidentified Participant
Thank you so much.
Operator
Thank you our next — before we take the next question, a reminder to all the participants. If you wish to register for a question, please press star then 1. The next question comes from the line of Shrey Gandhi from CR Gothari Stock Broking. Please go-ahead.
Shrey Gandhi
Good evening. Thank you for the opportunity. My question is regarding the payer use model, which you just mentioned. Can you give a brief about that how would it actually work then? How much was the contribution in FY ’25 in terms of percentage of revenue.
Shekhar Sood
Yeah, I think it’s a very good model. See, the idea is that there are customers who tend to get limited benefits, let’s say, on any of the products from the bank. So opportunity is that because of spend base or any other reason, because of, let’s say, the card variant that the customer has got, they may not get all the benefits that the customer would ideally like.
So the idea really is that using that as an opportunity, giving the ability of the customer to purchase and actually use the benefit is really the paying use model. So we have done and we are doing more-and-more integrations with our partners to enable this to happen. So broadly, that’s the idea. I think in terms of a forecast, specifically for pay and use, I don’t think we are sharing any specific number at this time. It is part of the blended forecast, which contains other services.
Shrey Gandhi
Okay. I was asking about the revenue contribution in FY ’25 with this model, if you can share that number?
Shekhar Sood
No, at this time, we are not sharing the segmentation for that.
Shrey Gandhi
Okay. And how are we raising the awareness in the — in the passengers regarding this model because if any customer is selling a credit card, you might not be aware of this pain with model with the launches. So how are you raising awareness into that.
Shekhar Sood
Yeah, so we are working with a client actually. So this is not something that is our initiative solely. This is something that we are working with clients. So each client has their own plan on how best to target their consumer base. And every, you could say client has taken a variation of an approach.
So there is no standard go-to-plan that we go. Of course, we go with some maybe suggestions, but it is really our client would decide how best to approach the — their consumer base for this. So one of the biggest bank is actually helping us drive this awareness through relationship managers who are in-turn communicating there to their customers.
Then of course, we are like Bala said, we are using quite a lot of influencers and collaborating the influencers of the banks themselves in to ensure that they are also talking about these services in their whatever social media and post. So these are one or two type of ways of increasing the awareness.
Shrey Gandhi
Okay. And my next question is will.
Operator
Sorry to interrupt, Mr Gandhi, may we request you return to the question queue for a follow-up question. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please restrict your questions to one or two per participant. If you have any follow-up questions, you can rejoin the queue. The next question comes from the line of Naveen from iThought PMS. Please go-ahead.
Navin Koushik
Hey, hope you will hear me.
Operator
So you’re sounding a bit muffled if you’re using the speakerphone, may we request to use the handset please? I am not they are not clear.
Navin Koushik
Is it better now?
Operator
This is much better, sir.
Navin Koushik
Yes. Yeah. Sorry about that. Yeah. So just a quick question — correct me if I’m wrong, but even before the introduction of the use model that you discussed recently, I think if you didn’t have a credit card benefit, you could say and you surround this, right? So can you please clarify what exactly has changed to the same model or if I’m understanding things wrong?
Shekhar Sood
I think the main idea over here is that we were restricted to only those services that bank was giving complementary. And you are correct, some users were aware that you could pay and use for when the complementary services would finish. The new idea over here is that we are taking the entire portfolio of Dreamfolks and we are allowing the customers to get, first of all, exposure that they have access to such services and they also are getting a beautiful discount that is not what they will be able to get.
So the fact that they happen to be a bank’s customer and they are able to get these — the bank is able to negotiate discounts in partnership with us and the consumer is getting on behalf is really the cool thing over here. Now the main thing over here is that these benefits are only given if you go through the bank approved or bank blessed portals, which is basically our tech.
And therefore, it is good for the bank because they get additional revenue and it is good for the consumer because they get access to a host of these new services, which previously they did not have access to. So this works both for new services that we have launched, but also works for the older services like lounges or spars or assist. So it’s actually through the entire universe of services that is now enabled.
Navin Koushik
Understood. Understood. Thanks a lot. So my next question is related to the margins. I’m really sorry if this is a little repetitive, but I remember like back-in Q1 ’24, right, so the issue with the margin started-off like the camps costs being a little higher and then us not being able to pass over the cost.
So I understand that you have given a guidance of this thing and you’re taking measures to diversify revenue same client and all. But I just want to understand, is there no scope of renegotiating our costs with our loans operators on one-hand and the clients like the bank, primarily the card issuers and card networks on the other to get a better margin.
Just asking this question because even if we do achieve our target of getting 15% of our top-line from other sources, 85% of our revenue is still going to come from loans. So I just want some clarity on this if you could help.
Liberatha Kallat
See, this is an ongoing thing, right? It’s the ongoing business thing which happens regularly. And yes, we are working on that. But you know, as and when the volume of any product in increases, right? So there are chances and the — I would say that it’s a way the business is that you would see a drop-in the margins.
Secondly, it’s not that it’s going to be in the same way because as we mentioned that we also have new set of clients coming in. So obviously, the margins would be much better with these set of clients. And also, I would say that the negotiations with the lounge operators as vis-a-vis the negotiation even with the banks are also helping us further in getting the better margins, I would say.
Navin Koushik
Understood. Understood. Yeah. Thanks a lot. Yeah, have a nice year ahead.
Operator
Yeah. Thank you. Your next question comes from the line of Kushal Mondal from Yashi Securities Private Limited. Please go-ahead.
Kushal Mondal
Hello, am I audible?
Operator
No, sir your audio is sounding muffled.
Kushal Mondal
Hello.
Operator
Yes sir, please go-ahead.
Kushal Mondal
So I’ve joined the call a little bit late to in April, if you have already admitted questions. In this quarter I see the finance cost is at INR2.2 crores, which was previously at a flattern level at INR38 lakhs. So what was the land level? Because I see the borrowings have reduced, but the lease edities have increased. So is that the reason for increasing the finance cost?
Shekhar Sood
Yeah. Yeah. So there was like as per the contract, there were few payments that happened. So we have just provided for this cost and there is no as such actual cost and we are already in discussion with a few of the vendors to get it resolved.
Liberatha Kallat
So it is just a provision which is made right now because as Sheikar was mentioning that we have a certain clause in the contract in terms of the payment. So in terms of the delayed payments kind of a thing. And so it is just a provision which is made. However, we are in discussion and it’s almost closed. In terms of you know setting this off.
Kushal Mondal
Okay and my second question is related to the first one. So what are the I think for what are the things that they are related in the lease liability, but what are you taking in the leases?
Shekhar Sood
Okay. So for the lease liability we moved our office to a new place. So as you know, as per the accounting treatment, so old lease was discontinued and new lease was accounted for. And you know that when we have this new place shifting, then obviously, like you have to recognize the lease liability as well as the leased assets. So that come at a higher-value. That’s why you see the difference.
Kushal Mondal
Okay, sir. Thank you, sir. All the best.
Operator
Thank you. Your next follow-up question comes from the line of Shriansh Mehta from Equirus. Please go-ahead.
Shreyans Mehta
Yeah. So two questions from my side. One, once our non-lounch business portfolio stabilizes, what sort of margins are we targeting, A? And secondly, our other income too seems to be on a higher side. So any particular reason for it?
Shekhar Sood
Yes, Shreyan. So in terms of non-loun services, they will definitely have higher-margin because obviously, these are new services that is novelty attached to it. And we also want to skim it when we actually go to the client and sell this because there is a different — this brings a lot of differentiation to the client.
So yes, it will be higher. I mean, to what extent it depends on the service. From the current lounge margins, it will — it will — it can be between 2% higher to as high as 10%, 15% also, higher than the current lounge margin. One is that.
Sandeep Sonawane
Second, in terms of the — yeah. Second, in terms of — second was, I think our. So for the other income, there were few items. One was redemption of the mutual funds. So on that we got profit and also there was exchange gain that were there. So these resulted in the increase in the other income.
Shreyans Mehta
Sorry, one is your redemption of mutual fund. Second you mentioned is exchange gain.
Shekhar Sood
Yeah, correct, yes.
Shreyans Mehta
Got it. Got it. Sure. That’s it from my side. Thank you.
Operator
Thank you. Our next question comes from the line of Rohan Dedia, an investor. Please go-ahead.
Unidentified Participant
Yeah, can you hear me?
Shekhar Sood
Yes, please.
Unidentified Participant
Yeah. Sir, thank you for the opportunity. I had a few questions on the business model. As I understand, because of our deep integration, we are the only company that enables access to the lounges on credit cards. And because of this, we have the highest volumes in the industry and hence the best rates.
So please correct me if my understanding is correct or wrong. And if my understanding is correct, I just wanted to understand why do some of the credit card companies despite having integration with Dreamfolks still choose to work with our competitors like pass, etc, like what is the motivation for them?
Liberatha Kallat
Dreamfox is actually, you know, India’s largest I would say, in terms of providing the lounge benefit or the airport benefit. Banks still giving the priority bus or the competition card is primarily for access in — for the global lounges, which is lounges outside India market, right? So yes, as we always said that we are also now have the aspiration and we have already covered — I mean in terms of the network spread, we have spread across 120 countries, right?
So the reason of they being the market-leader in India is because of the technology what we have, because of the solution, the service what we render and that is the reason that why we are the market-leader here. However, the global market, we have just started two years back and yes, most of the clients have shown the interest.
However, right now our focus is more into Southeast Asia market and we are very closely working there. We also have an subsidiary in Singapore. We also have a team there who is also working for that market. So soon you will not see us that we are just limiting to India market, but yes, we will be out in global market as well.
Unidentified Participant
Got it,. And my second question, some of the credit card companies, especially the newish credit card companies, they are not integrated yet with us. So what would be the reason that they are holding back on integration with us right now?
Liberatha Kallat
Which credit cards?
Unidentified Participant
No, I mean some of the new-age credit card companies, as I understand, may still not have integrated Dreambox for access to lounges. So please correct me if I understand it is correct. What was the motivation for them yet not to integrate us?
Shekhar Sood
Yeah. I think see some of the information may or may not be public, but typically, we have an entire strike of solutions for even fintechs. So I — and we do have and we have a lot of fintechs as well, a lot of fintechs who are a client. So that — the one possibility that could be that whether they can really afford to have this kind of a cost on their P&L, I mean it could be an acquisition cost, it could be anything else.
But yeah, I mean as and when they can actually — their P&L permits, obviously, they would have lounge and most likely, I mean, 85%, 90% likely that they would come and integrate with us. So yes, we do have quite a lot of fintech already working with us.
Unidentified Participant
Got it. And ma’am, just last final question.
Operator
Due to time constraints. Can I last question is just a small one. Sorry, I’m really sorry, but due to time constraints, we would take that as a last question.
Liberatha Kallat
Now you can ask one question.
Operator
Yeah. Just one moment, just one moment ma’am, we have dropped the line of the participant from the queue. So I would now like to hand the conference over to Ms for closing comments.
Liberatha Kallat
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 you all once again for your time and participation. Do take care of yourselves and goodbye. Thank you.
Operator
Thank you. On behalf of Dreamfolks Services Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines