Malayalam Cinema 2025 Faces ₹530 Crore Loss Despite Hits and Lokah Chapter 1 Chandra

The year 2025 was a mixed bag for Malayalam cinema, with some super hits like Lokah Chapter 1 Chandra shining, while 150 films failed, leaving the industry with a reported loss of ₹530 crore.

The year 2025 was significant for Malayalam cinema, marked by a mix of strong themes, star-studded releases, and record-breaking performances. While films like Lokah Chapter 1 Chandra entered the 300 crore club, the Kerala Film Chamber reports that the industry faced a substantial loss by the end of the year.

Film Releases and Box Office Performance

A total of 185 new Malayalam films were released in 2025. Of these, only nine films were classified as super hits, and around 16 films were considered hits. About ten films with average theatrical collections managed to recover their investments through OTT releases. Unfortunately, the remaining 150 films failed at the box office.

Investment and Losses

The total investment in these new films was approximately ₹860 crore. Excluding the films that made a profit or recovered costs, Malayalam cinema faced a loss of ₹530 crore in 2025. Despite a few successes, the overall financial outcome painted a challenging picture for the industry.

Re-Releases: A Mixed Response

Re-releases became a trend in 2025, with eight older films returning to theaters. However, only three of these films performed decently, showing that while there is interest in classic films, the trend did not significantly boost the industry’s revenue.

Despite the financial setback, 2025 saw Malayalam audiences embracing unique and diverse storytelling. Films starring Mohanlal, Mammootty, Asif Ali, and Nivin Pauly garnered attention, reflecting that viewers are open to innovative themes and strong narratives.

Outlook for 2026

Looking ahead, the Malayalam film industry is hopeful. With several high-quality films reportedly in the pipeline for 2026, industry insiders are optimistic that the coming year will balance creativity with profitability, giving audiences both entertainment and box office hits.