The glitter of record-breaking box office numbers often hides a less glamorous financial reality for filmmakers. In a stark revelation, prominent Malayalam producers M Renjith and Listin Stephen have detailed the severe economic challenges plaguing the industry, explaining why a producer's share is often just a fraction of the headline-grabbing gross collections.
The Disparity Between Gross and Net
During a candid session at the second edition of Manorama Hortus, the producers pulled back the curtain on film economics. M Renjith of Rejaputhra Visual Media, the production house behind the 2025 blockbuster Thudarum, provided a clear example. He stated that if a film makes a gross collection of Rs 150 crore, the producer ultimately receives only around Rs 55 crore. This sum must then cover a multitude of other expenses.
"Then there are payments to be made to the government, distributors and other stakeholders," Renjith explained. He also highlighted a critical misunderstanding, noting that it's the gross collection figures that often trigger Income Tax raids, while officials are now realizing that the total collection is not the actual profit earned by the producer.
A Year of Contrasts for Mollywood
The revelations come in a year of contrasts for Malayalam cinema. While 2025 has seen three monumental successes—Lokah Chapter 1: Chandra (Rs 303.67 crore), L2: Empuraan (Rs 265.5 crore), and Thudarum (Rs 234.5 crore)—ranking first, second, and fourth on the all-time highest-grossing list, the overall annual performance is deemed merely satisfactory.
This pales in comparison to 2024, which witnessed six films crossing the coveted Rs 100 crore mark, with several others nearing it. In 2025, only the three aforementioned movies have surpassed this milestone. The only other film to come close is Dies Irae, which has garnered a worldwide gross of approximately Rs 82 crore according to industry tracker Sacnilk.
Shrinking Numbers and Rising Costs
Both producers pointed to a worrying contraction in the industry's output. Renjith noted that the number of Malayalam films produced dropped from 247 in 2023 to 229 in 2024. This decline is expected to continue, with the figure likely to fall further to between 200 and 210 films in 2025.
Listin Stephen of Magic Frames, known for backing hits like Ajayante Randam Moshanam and Kaduva, elaborated on the post-pandemic pressures. "Since Covid, the remuneration of the artistes and the technicians has gone up. Now, satellite rights and OTT are two distinct aspects. This has affected returns," he observed.
Stephen also shed light on the precarious funding model, revealing that only about 5% of producers rely on their own funds to make a movie. The vast majority depend on loans, partnerships, and other financial arrangements. He emphasized that their decision to release actual collection figures was a reminder to those demanding high remuneration, not an attempt to deter new producers.
The session underscored a sobering truth: despite the occasional mega-hit, the Malayalam film industry's ecosystem remains fragile, with producers bearing a disproportionate share of the financial risk for a sliver of the reported profits.
