Positive response to Onam releases revives hopes for Malayalam film industry

The Onam festival window has cheered up the Malayalam film industry in Keralam, despite a mixed fare at the box-office.

With filmmaker A.D. Girish’s Nivin Pauly-starrer Bethlehem Kudumba Unit turning a blockbuster, exhibitors say the impressive collections for the rom-com are expected to help them sail through this quarter of the fiscal on a positive note. A total of about ₹100 crore was at stake for the industry as this festival witnessed a box-office clash between Bethlehem Kudumba Unit and filmmaker Vysakh’s Khalifa starring actor Prithviraj Sukumaran.

“Bethlehem Kudumba Unit has crossed the ₹200-crore mark in gross collections worldwide as on Tuesday (September 1, 2026). The movie has earned a Keralam gross of over ₹100 crore within 10 days of its release. Khalifa has earned over ₹40 crore worldwide since its release on August 20, 2026,” point out Suresh Shenoy, member of the executive committee of the Film Exhibitors’ United Organisation of Kerala (FEUOK).

“Bethlehem Kudumba Unit continues to have an impressive run even after the reopening of educational institutions after the festival holidays,” he said.

P.V. Basheer Ahamed, president of the Kerala Film Exhibitors’ Association, said that the collections for Khalifa were impacted following the enthusiastic response to Bethlehem Kudumba Unit from the first day of its release. “Having a repeat audience is a sign of a hit movie as seen in the bookings for Bethlehem Kudumba Unit. Festival release windows often provide an opportunity for the industry to improve its overall earnings. We had high hopes for this season and it has come out well,” he said.

Positive response overall

As per the estimates by the Kerala Film Chamber of Commerce, the overall audience response to both the festival releases has been positive.

Anil Thomas, president of the apex body of the Malayalam film industry, says such a boost has been much-needed as the first half of 2026 had seen fluctuating fortunes at the box-office. “The reception to actor Dulquer Salmaan’s I’m Game slated for release on September 3 is keenly awaited as it will help in continuing the current momentum at the box-office,” he said.

The industry stakeholders remain unanimous in accepting that good content and storytelling will bring moviegoers into the cinemas.

B. Rakesh, president of the Kerala Film Producers’ Association, said that multi-crore budget and lead stars alone may not help a movie sail through in the final lap. “Viewers will always lap up movies that have excellent content,” he said.