Earlier this month, Karan Johar's Dharma Productions generated quite a lot of frenzy in the cinema business world when they sold 50% stake to Adar Poonawalla for ₹ 1000 crore. As one of the biggest and most influential production houses in Indian cinema, Dharma was long considered infallible, almost invincible. However, the deal showed that there was a lot wrong with the company beneath the glitzy exterior.
Now, the company's financials - which have been revealed this week - show just how dire the situation was. ( Also read: Karan Johar makes Adar Poonawalla Dharma Productions' co-owner, sells 50% stake for ₹ 1000 crore ) Dharma Productions's brave return after Covid-19 Dharma had been on the rise throughout the 2010s under Karan Johar 's stewardship. As the filmmaker left direction to take on the role of studio head full time, the production house gave hits like Yeh Jawaani Hai Deewani, 2 States, Humpty Sharma Ki Dulhania, Dear Zindagi, Raazi, and Simmba.
By 2019, Dharma was generating annual revenue of over ₹ 700 crore with profits of around ₹ 27 crore, as mentioned in the company's annual reports submitted to the Ministry of Corporate Affairs. Then, the pandemic hit, and it all came crashing down for the cinema industry. Dharma had a dramatic 83% drop in revenue and a 75% dip in profits as did many other production houses.
But the company bounced back. With hits like JugJugg Jeeyo, Brahmastra, and Sooryavanshi, Dharma exceeded its pre-pandemic earnings, topping wit.
