If you like to ask any Malayalam movie fan and they’ll tell you we’re in a golden era — a time of fearless storytelling, breakout talent, and creative highs. But when you to speak to a producer or industry insider, and the mood quickly changes as they have been facing a trauma. Behind the global acclaim and critical buzz lies an unpredictable truth: Malayalam cinema, for all its brilliance, is struggling to stay financially stable.
In March 2025, the harsh economics of the Kerala film industry came into sharp focus. According to reports, out of the 15 Malayalam films released last month in March, only one — L2: Empuraan, the high-octane Mohanlal–Prithviraj action thriller — managed to break even, let alone turn a profit. Mounted on a massive Rs1.75 billion, the film grossed Rs3.25 billion worldwide within its first month, standing out as a rare commercial outlier in an otherwise grim financial landscape, according to Malayalam news website Manorama.
