Dreamfolks Services543591Board decision
Board approves security by way of Rs. 5.5 crore fixed deposits for subsidiary's overdraft facilities
Board approved security by way of fixed deposits of INR 5.5 crore each with ICICI Bank and AU Small Finance Bank for overdraft facilities to be availed by subsidiary Ten 11 Hospitality.
By ScoutQuest · · 3 min read
291.24 (INR million)-85.8%
Q2 FY252,055.18 (INR million)Q2 FY26291.24 (INR million)
- Q2 Standalone Revenue
- Rs. 291.24 million
- Q2 Standalone Loss After Tax
- Rs. 90.56 million
- Fixed Deposit Security Approved
- INR 5.5 crore each with ICICI Bank and AU Small Finance Bank
What the Board approved
- The Board approved a proposal to provide security by way of fixed deposits of INR 5.5 crore each to ICICI Bank Limited and AU Small Finance Bank Limited.
- The security is to secure the obligations of Ten 11 Hospitality Private Limited (formerly known as Ten 11 Hospitality, LLP), a subsidiary of the company.
- The fixed deposits relate to overdraft facilities backed by fixed deposits that Ten 11 Hospitality is to avail, as per the facility documents.
- In simple terms: the company is placing its own fixed deposits with two banks so that its subsidiary can obtain overdraft limits. If the subsidiary does not meet its obligations, the banks can fall back on those deposits.
Quarter and half year numbers (standalone, unaudited)
- Revenue from operations for the quarter ended September 30, 2026 was Rs. 291.24 million, against Rs. 2,055.18 million in the quarter ended September 30, 2025.
- Loss after tax for the quarter was Rs. 90.56 million, against a profit after tax of Rs. 121.79 million a year earlier.
- For the half year ended September 30, 2026, revenue from operations was Rs. 662.79 million and loss after tax was Rs. 226.11 million, against revenue of Rs. 5,544.68 million and profit after tax of Rs. 343.63 million in the half year ended September 30, 2025.
- Total income for the quarter was Rs. 323.27 million against total expenses of Rs. 440.75 million.
- Basic loss per share was Rs. 1.70 for the quarter and Rs. 4.24 for the half year, against basic earnings per share of Rs. 2.29 and Rs. 6.45 in the comparable periods.
- The statutory auditors issued unmodified Limited Review Reports with an Emphasis of Matter on these results.
Auditor's Emphasis of Matter
- The auditors drew attention to a petition shared on May 15, 2026 under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Travel Food Services Limited, an operational creditor of the company, before the National Company Law Tribunal, New Delhi Branch.
- The petition alleges default in payment and seeks initiation of Corporate Insolvency Resolution Process against the company for an amount aggregating to approximately Rs. 114.00 million.
- Management has represented that the company strongly disputes the claims and has taken appropriate legal steps, and that appropriate provisions considered necessary have already been made in the books of account.
- The auditors' conclusion is not modified in respect of this matter.
Other Board decisions
- Ms. Meena Lall appointed as an Additional Director and designated Independent Director with effect from January 01, 2027, for a term of three consecutive years through December 31, 2029, not liable to retire by rotation, subject to shareholder approval.
- Mr. Sanyam Nagpal appointed as an Additional Director and designated Executive Director (Key Managerial Personnel) with effect from January 01, 2027, for five consecutive years through December 31, 2031, liable to retire by rotation, subject to shareholder approval.
- TRC Corporate Consulting Private Limited appointed as Internal Auditor of the company for the financial year 2026-27.
How to read this
- The security approval is a support measure for a subsidiary's banking facilities and involves the company's own fixed deposits standing as backing for the subsidiary's obligations.
- The standalone results for the quarter and half year show a loss at the profit level, compared with a profit in the same periods a year earlier.
- The insolvency petition is a legal matter flagged by the auditors; management states it is disputed and provided for.
- The two director appointments take effect from January 01, 2027 and are subject to shareholder approval.
Also from Dreamfolks Services
Audio recording of earnings call for quarter and half year ended September 30, 2026 made available
3 Nov 2026
Board approves H1 FY27 results, two director appointments, internal auditor; security for subsidiary
3 Nov 2026
DreamFolks Q2 FY27 investor presentation: revenue at INR 31.1 crore, H1 gross profit back in positive territory
3 Nov 2026
More numbers
- Fixed deposit security to each of ICICI Bank and AU Small Finance BankINR 5.5 crore
- Q2 FY26 standalone revenue from operations291.24 (INR million)
- Q2 FY26 standalone loss after tax(90.56) (INR million)
- Q2 FY25 standalone revenue from operations2,055.18 (INR million)
- Q2 FY25 standalone profit after tax121.79 (INR million)
- H1 FY26 standalone revenue from operations662.79 (INR million)
- H1 FY26 standalone loss after tax(226.11) (INR million)
- Amount claimed in IBC petition by Travel Food Services LimitedRs. 114.00 million
Source: BSE · 3 Nov 2026
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