Dreamfolks Services shares fall 4% after warning of 'material impact' due to programme closures

Shares of Dreamfolks Services Ltd. will be in focus on Wednesday, July 2, after the company informed the exchanges of certain programme closures, which could have a material impact on its financials.

In an exchange filing on Monday, Dreamfolks said that certain programmes that it runs for private lenders like Axis Bank and ICICI Bank have been closed from July 1, 2025. It went on to add that although some programs have been closed, the contracts with these clients are still valid.

"While the Company is currently evaluating the exact potential impact of aforesaid, it is likely to be material in nature," the company said in its statement.

Activation of new programmes or deactivation of existing programs is part of regular business operations, according to the company's statement, which further stated that it is committed to take requisite actions to mitigate the impact.

"The Company remains committed to adhering to the highest standards of corporate governance and will continue to inform the exchanges of any material events in a timely manner as required under applicable laws," Dreamfolks said further.

In an interaction with CNBC-TV18 last week, Dreamfolks' management had spoken about no contracts being cancelled with existing customers.

"I think all the clients are still with us, and the reason is because we have, it's been a long standing relationship what we have with all the banks. They all understand that what is the value we bring to them. And second, most importantly is that we are deeply integrated with all our clients, all our banking clients, and in terms of our contracting, if have to see, see the process the way it is that, you know, we have our main contract, which is ideas. You know, it's on the annual basis. So, yes, there are negotiations on the commercials on the annual basis. It's an ongoing process," Dreamfolks Chairperson and Managing Director, Liberatha Peter Kallat had highlighted last week.

Shares of Dreamfolks Service ended little changed on Tuesday at ₹237.5. The stock trades well below its IPO price of ₹326, having declined 8% in the last one month.