1. Ten11 Hospitality acquisition completed Delivered - The Q2 FY26 PPT stated the acquisition of Ten11 Hospitality LLP was completed. The acquisition was completed with an investment of ₹11.46 crore for a 50.01% stake, and the Chennai, Mumbai and Vadodara railway lounges are operational.
2. Net worth over ₹125 crore as on March 31, 2023 Delivered - In the December 2022 rating rationale, CRISIL expected net worth over ₹125 crore as on March 31, 2023. Net worth reached ₹236.4 crore by FY24, up 50.5% year-on-year, indicating FY23 net worth was already well above the ₹125 crore expectation.
3. 20% revenue CAGR for next 3 years (FY25-FY27) Missed - At the Q4 FY24 call, management estimated revenue growth of approximately 20% CAGR for the next 3 years. At Q2 FY25, management indicated the \~20% growth guidance for FY25 would not be met. FY25 revenue grew 13.8% and FY26 revenue declined 48.9%, far below the 20% CAGR trajectory.
4. Spend-based transition impact to stabilize by Q2 FY25 Missed - At the Q4 FY24 call, management expected the credit-card spend-based transition impact to stabilize by Q2 FY25, with the net impact measurable from Q3 onwards. Q2 FY25 was the first quarter with lower year-ago lounge volumes, the decline was sharper than simulation models anticipated, and the transition was still not completely implemented; the impact continued through FY25 into FY26.
5. No significant capex requirement Delivered - At the Q3 FY24 call, management stated the company does not anticipate significant capital expenditure requirement and is confident of funding acquisitions and expansions from internal accruals. The Ten11 acquisition of ₹11.46 crore and the ongoing ETT acquisition were made, CWIP remained minimal through FY26, and Q1 FY27 saw upfront minimum guarantee payments impacting gross profit.
6. Gross margin to return to 14-15% in a few quarters Missed - At the Q3 FY24 call, management expected to get back to the historically maintained \~14-15% gross margin in "couple of months I would say or few quarters later". Gross margin was 12.5% in Q4 FY24, 11.7% in Q1 FY25, 12.4% in Q2 FY25 and 11.6% for FY25 - the 14-15% level was not reached through FY25.
7. Future acquisitions to maintain high ROE/ROCE model Missed - At the Q4 FY23 call, management committed that any future acquisition/investment would maintain the existing high ROE/ROCE model. FY24 ROE was 29.04% and ROCE 38.61%, FY25 ROE 21.61% and ROCE 30.00%, but FY26 ROE fell to 3.70% and ROCE to 5.79% after the Ten11 and ETT acquisitions.
8. Capital advances/security deposits returned by March 31, 2023 Delivered - Management had guided that capital advances/security deposits to related and independent parties would be returned by March 31, 2023. The ₹23.55 crore of capital advances/security deposits were terminated and fully received back before the committed date, "in line with the guidance given in previous calls".
9. Enterprise client segment to contribute 15-20% of top line in 3-4 years On track - At the Q1 FY25 call, management guided the enterprise (non-bank) client segment to contribute "somewhere around 15% to 20%" of top line in the "next 3 to 4 years". 30+ enterprise clients were onboarded in FY25 and over 40 in the year to Q1 FY26; no segment revenue contribution is disclosed, and the horizon extends to Jun 2027-Jun 2028.
10. No change in business model - continue as B2B Partial - At the Q4 FY24 call, management stated it does not foresee any change in the business model, with no shift to a pure fee model. The company remained B2B through FY25, but in Q2 FY26 DreamFolks Club 2.0 was launched as a B2C membership platform, with memberships showing steady growth in Q1 FY27, while the core B2B model continues.
11. Cash conversion cycle of 20-25 days Partial - At the Q4 FY24 call, management stated it works on a cash conversion cycle of between 20 to 25 days "always". Q3 FY25 working capital cycle stood at 30 days vs 58 days the prior quarter, against receivable days of \~100 and payable days \~75 in Q2 FY24; the 20-25 day cycle was not consistently achieved.
12. No major capex required for international expansion Delivered - At the Q2 FY23 call, management stated no major investment would be required for international expansion - only a "very small portion" for solutions/hardware deployment. The company operated asset-lite; Q1 FY27 saw upfront minimum guarantee payments for global lounge expansion that drove negative gross profit, with management stating no further such payments are expected.
13. International expansion - Southeast Asia and Middle East clients within 6-7 months Partial - At the Q3 FY23 call, management said clients from Southeast Asia and Middle East regions would start contributing in 6 to 7 months' time. A Singapore subsidiary was incorporated in Q4 FY23 and Malaysia was entered in Q2 FY24, roughly a quarter later than the Jun-Jul 2023 horizon; by Q1 FY27 three large APAC clients were signed.
14. Dividend payout - interim and final dividend for FY24 Delivered - At the Q1 FY24 call, management said they would follow the interim dividend with a final dividend this year. An interim dividend of ₹0.50 per share was approved in Q1 FY24, and a final dividend of ₹1.5 per share was declared, taking the FY24 total dividend to 100% of face value.
15. 100% coverage of railway lounges in India maintained Delivered - Management committed to maintaining 100% coverage across all railway lounges in India, reiterated across multiple quarters. Coverage was maintained through FY25, FY26 and Q1 FY27, with the lounge count growing from 12 to 15 including 3 owned via Ten11.
16. 100% coverage of airport lounges in India maintained Pending - Management committed to maintaining 100% coverage across all airports in India, reiterated across multiple quarters. Coverage was maintained through FY25, with airport lounges on the platform growing from 60 in Sep 2022 to 75 by Q4 FY25; FY26 disclosures attribute the revenue collapse to disruption in the domestic lounge business and state no coverage figure, so maintenance beyond FY25 is unverified.
17. Easy To Travel (ETT) acquisition completion Partial - At the Q4 FY26 call, management described the Easy To Travel acquisition as "ongoing", aimed at international expansion and Middle East reach, with an initial 120-business-day timeline later revised as the primary subscription phase "may extend beyond the aforesaid indicative timeline". The secondary purchase phase completed on April 22, 2026, taking shareholding to 34%; the primary subscription phase remains under process as of Q1 FY27.
18. Cash positive in 2-3 quarters (from Q3 FY26) On track - At the Q3 FY26 call, management said cash burn would stop and the company would become cash positive in 2 to 3 quarters. Q1 FY27 cash and cash equivalents rose to ₹193.3 crore from ₹149 crore in Q4 FY26, helped by customer collections of nearly ₹40-plus crore, within the Jun-Sep 2026 horizon; full confirmation is not yet explicit.
19. EBITDA breakeven by FY28 On track - At the Q4 FY26 call, management said breakeven will likely come "maybe a year later" than FY27, roughly by FY28, reaffirmed at Q1 FY27 ("I would stick to what we have committed last time") with bottom-line breakeven "by next year". Q1 FY27 adjusted EBITDA was negative ₹16.4 crore and Q4 FY26 negative ₹13.4 crore; the FY28 horizon has not been reached.
20. DreamFolks Club to generate \~₹100 crore in 2-3 years On track - At the Q3 FY26 call, management said DreamFolks Club is expected to generate maybe around ₹100 crore in the next 2 to 3 years. Q1 FY27 showed steady quarter-on-quarter growth in memberships across three tiers averaging ballpark ₹30,000, with contribution still miniscule vs total revenue; the horizon extends to Dec 2027-Dec 2028 with no revenue figure disclosed yet.
21. Global business opportunity of ₹500-550 crore in 2 years On track - At the Q3 FY26 call, management guided a global business opportunity of ₹500 crore to ₹550 crore in the next 2 years, with EBITDA expected around 9-10%. Global lounge transaction volumes grew approximately 80% QoQ and nearly 200% YoY in Q3 FY26, and the global network spans over 1,000 airport touchpoints, though Q1 FY27 global lounge business dropped drastically QoQ on the war impact.
22. Railway lounge business to reach \~₹500 crore revenue in 5 years On track - At the Q3 FY26 call, management guided railway business potential of \~₹500 crore in the next 5 years with railway EBITDA around 9-10%, reiterated at Q4 FY26 ("our plan of ₹500 crores 5 years remains clear intact") with a requirement of "not less than 50 lounges". The company has 15 railway lounges as of Q1 FY27, with Lucknow expected to commence soon; the horizon extends to approximately FY31.
23. Revenue to double in 4-5 years (FY25 base) / 2.5x in 5 years On track - At the Q4 FY25 call, management's 5-year strategy was to grow revenue "more than double in the next 5 years", restated as "growing the top line by 2.5x in the next 5 years". FY25 base revenue was ₹1,291.9 crore; FY26 revenue fell to ₹660.6 crore and Q1 FY27 was ₹39 crore, with the FY29-FY30 outcome not yet due.
24. FY25 adjusted EBITDA margin of 7-9% Delivered - At the Q1 FY25 call, management guided FY25 adjusted EBITDA margin of "anywhere between 7% to 9%", reiterated at Q4 FY25. FY25 adjusted EBITDA margin was 7.9%, within the guidance, with quarterly prints of 8.0% in Q1 and 8.1% in Q2.
25. FY25 revenue growth of 20% Missed - At the Q1 FY25 call, management confirmed "it's going to be 20% growth for the full year" for FY25, part of the \~20% CAGR estimate given at the Q4 FY24 call. At Q2 FY25 management warned "there are chances that we will not be able to stick on the projections". FY25 revenue was ₹1,291.9 crore, up 13.8% YoY, short of the 20% target.
26. FY24 revenue growth of 60-65% Delivered - At the Q1 FY24 call, management guided top-line growth of "around 60% to 65%" for FY24; at Q2 FY24 the guidance was withdrawn without a replacement number, and at Q3 FY24 revised to "more than 40% year-on-year growth". FY24 revenue was ₹1,135 crore, up 46.8% YoY, meeting the revised guidance but short of the original target.
27. Gross margin maintained at 11-13% - FY24 and FY25 Delivered - At the Q1 FY24 call, management guided FY24 gross margin of 11%-13%, reiterated through FY24 and again for FY25. FY24 gross margin was 12.1% and FY25 was 11.6%, both within guidance; the expected H2 FY25 expansion did not materialize, with Q4 FY25 at 11.2% vs Q1's 11.7%.
28. Non-lounge services to reach 10-15% of revenue in 3-5 years Pending - At the Q3 FY23 call, management guided services other than lounge to contribute 10% to 15% of revenue in the next 3 to 5 years, later revised at Q4 FY25 to an aspiration of scaling the then-7% contribution up to a third of revenues in the next 5 years. Non-lounge share moved from 5% in Q2 FY23 to 7% in FY25; the Q1 FY27 call discloses no updated share, so progress toward the \~FY30 horizon remains unverified.
29. FY23 revenue \~₹600 cr and operating margin 11-12% Delivered - In the December 2022 rating rationale, management expected revenue around ₹600 crore for full-year FY23 and operating margin around 11-12% going ahead. FY23 revenue was ₹773.25 crore, up 174% YoY, and FY23 EBITDA margin was 13.16%, both above the guided figures.