Dreamfolks Services shares in Wednesday's trade marked their fresh 52-week low after seven straight days of consecutive losses in the scrip. After plunging to the new 52-week low of Rs 164.55 per share, the stock in today's session settled lower by 7 per cent at Rs 165 per share on the NSE.

In a 7-day falling streak, the stock has come down from Rs 237.35 per share on June 30 to last close at Rs 164.7 per share as of today's close, meaning a significant decline of 31 per cent.

The stock from the all-time high price of Rs 846.75 reached in August 2023 last year has plummeted as much as 80 per cent considering last close.

What led to the sharp fall in Dreamfolk Services stock?

Analysts attribute the slump to the termination of lounge access programs by Axis Bank and ICICI Bank, which took effect on July 1, 2025. These programs formed a significant portion of Dreamfolks’ business. Additionally, leading banks and networks are reportedly shifting to direct tie-ups with lounge operators, potentially diminishing Dreamfolks’ aggregator model.

In its filing the company said, "Company runs various programs for Axis Bank and ICICI Bank. Certain programs of the abovementioned clients have been closed w.e.f. July 01, 2025. However, we would like to also apprise that our contracts with above clients are still valid."

While the Company is currently evaluating the exact potential impact of aforesaid, it is likely to be material in nature. Activation of new programs/ deactivation of existing programs is part of our regular business operations. Moreover, the Company is committed to take requisite actions for mitigating above impact, it added.

Headwinds for the company

Vaibhav Vidwani, Research Analyst at Bonanza pointed out that leading banks and networks are reportedly shifting to direct tie-ups with lounge operators, potentially diminishing Dreamfolks’ aggregator model.

Near-term outlook looks cautious

Vidwani added that the company’s fundamentals show resilience, with a healthy ROE of 24.2% and minimal leverage. However, with client concentration risks materialising and revenue visibility weakening, near-term outlook remains cautious, prompting close monitoring of client retention strategies and diversification efforts.

Technical outlook

Drumil Vithlani, Technical Research Analyst at Bonanza said that the stock is trading at an all-time low and has recently witnessed a breakdown from a rounding top pattern, indicating distribution at higher levels and a clear shift in sentiment. The breakdown is accompanied by rising volume, adding confirmation to the bearish setup.

From a technical standpoint, the stock is deeply oversold, with the RSI near 30, suggesting that while downside momentum is strong, a short-term bounce cannot be ruled out. However, the broader trend remains negative as long as the price stays below ₹175, he qadded. 

The analysts added that any rebound should be viewed as a selling opportunity, with potential downside targets placed at ₹160 and lower in the near term. Caution is advised, and traders should refrain from initiating new long positions until a strong reversal signal emerges.