Post by : Meena Ariff

Dharma Productions, one of Bollywood’s most prestigious film studios, has faced a lukewarm phase at the box office in recent months. Both Dhadak 2 and Homebound — the studio’s latest releases — failed to make a mark theatrically despite receiving positive reviews. However, Dharma’s creative head and producer Somen Mishra insists that the production house has not suffered any financial losses from these projects, crediting careful planning, tight budgeting, and diversified revenue streams for keeping the company in the green.

In a recent interview, Mishra addressed the perception that Dharma’s recent films have underperformed commercially. “Dhadak 2 and Homebound are two of the most tightly budgeted films ever made in Dharma. So, number-wise, we are safe. On Homebound, everyone took a pay cut — from the writers to the heads of departments — and Janhvi Kapoor worked for free. I told all the writers that for the next one, I’ll make up for it. That’s why we could make it cheaper. So, the box office was never a concern for these two films,” he said.

Low Budgets, Big Savings

While box office numbers often dominate public discussion, Mishra explained that the real success of a film depends on the economics behind it. Both Dhadak 2 and Homebound were deliberately made on smaller budgets to ensure minimal risk. By negotiating lower fees and optimizing production costs, Dharma Productions managed to control expenses without compromising creative quality.

Industry insiders note that this approach marks a shift in how big production houses are adapting to changing audience preferences and volatile box office trends. With theatrical revenues no longer guaranteed, studios like Dharma are relying on multiple revenue sources — digital streaming rights, satellite television deals, and music sales — to balance their books even before release.

Revenue Beyond Theatres

Mishra elaborated on how Dharma’s strategic model ensures financial safety for most of its projects. “Most of the time, we recover costs through music and digital rights even before the film hits theatres. Because we usually have chartbuster music, the value we get from audio and streaming rights is strong. Add to that the satellite deals, and we rarely lose money on a film,” he explained.

He also highlighted how the production house evaluates each project’s financial viability in advance. “Suppose there’s a budget of ₹100 crore — we calculate if ₹80 crore can be recovered through non-theatrical means. In that case, our risk appetite is only 20 per cent. That’s the Dharma model — we plan for safety,” Mishra added.

Changing Economics of Bollywood

In the last few years, Bollywood’s business dynamics have transformed drastically. The COVID-19 pandemic accelerated the shift towards OTT platforms, forcing studios to rethink traditional box office-driven strategies. Even though theatrical releases remain prestigious, the profitability of films now depends heavily on ancillary revenues.

For Dharma Productions, which has delivered some of the biggest blockbusters in Indian cinema like Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, Shershaah, and Rocky Aur Rani Kii Prem Kahaani, the ability to sustain profitability amid changing market trends reflects strong financial discipline.

Trade analysts believe that Dharma’s strategy of making smaller, content-driven films alongside larger event projects allows the studio to stay flexible. “Films like Homebound may not break box office records, but their cost-to-revenue ratio keeps them profitable. It’s smart business — balancing creativity with sustainability,” said one Mumbai-based distributor.

Creative Priorities Remain Intact

Despite the focus on financial prudence, Mishra insists that Dharma remains committed to storytelling and talent development. “At Dharma, we’ve learnt that filmmaking is not just about money. We experiment, we support new voices, and sometimes, even smaller films can change the conversation,” he said.

He added that while box office performance is important, the long-term creative value of a film also matters. “When you make a film like Homebound, which has something new to say, it builds trust and credibility with audiences and artists. That’s equally valuable.”

As Dharma gears up for its upcoming slate — including big-ticket releases and digital projects — the studio’s financial discipline and creative strategy seem aligned for the future. Mishra’s statements reaffirm that even in an unpredictable marketplace, smart budgeting, transparent communication, and a diversified revenue model can help sustain profitability.

In an era where perception often outweighs business reality, Mishra’s insight offers a rare look behind the numbers. For Dharma Productions, the story isn’t about hits and flops — it’s about staying profitable while continuing to tell stories that matter.

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