The positive response to the Onam release revives hopes for the Malayalam film industry

A big poster of Bethlehem Kudumba Unit star Nivin Pauly was on display in Kochi city. | Photo credit: THULASI KAKKAT

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

With AD Girish-starrer Nivin Pauly’s Bethlehem Kudumba Unit becoming a blockbuster, exhibitors say impressive collections for the rom-com will help them sail through this fiscal quarter 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 Vysakh’s Khalifa starring Prithviraj Sukumaran.

“Betlehem Kudumba Unit crossed the ₹ 200 crore mark in gross collections worldwide on Tuesday (September 1, 2026). The film grossed Kerala over ₹ 100 crore within 10 days of its release. Khalifa grossed over ₹ 40 crore worldwide in August 2026 since its release206 Shenoy, Executive Committee Member, United Kerala Film Exhibitors Organization (FEUOK).

“The Bethlehem Kudumba unit continues to run impressively even after the re-opening of educational institutions after the festival holidays,” he said.

PV Basheer Ahamed, president of the Kerala Film Exhibitors Association, said collections for Khalifa have been affected following the enthusiastic response to Bethlehem Kudumba Unit from the first day of its release. “Having a repeat audience is a sign of a successful film as seen in the bookings for Bethlehem Kudumba Unit. Festival release windows often provide an opportunity for the industry to improve its overall revenue. We had high hopes for this season and it has worked out well,” he said.

Overall positive response

According to Kerala Film Chamber of Commerce estimates, the overall audience response to both festival releases was positive.

Anil Thomas, president of the Malayalam film industry’s apex body, says such support was much needed as the first half of 2026 saw fluctuating fortunes at the box office. “The arrival of Dulquer Salmaan starrer I’m Game, which is slated to release on September 3, is eagerly awaited as it will help continue the current momentum at the box office,” he said.

Industry stakeholders remain unanimous that good content and storytelling will drive audiences to theaters.

B. Rakesh, president of the Kerala Film Producers Association, said a multi-crore budget and lead stars alone may not help a film make it past the final round. “Audiences will always watch movies that have excellent content,” he said.

Published – 01 Sep 2026 11:34 IST