The first half of 2026 has been a mixed bag for Mollywood, with surprise commercial successes and high-profile disappointments at the box office. According to estimates by the Kerala Film Chamber of Commerce, only about 10-12% of the around 80 films released between January and July 2026 made a mark at the box office, while the others failed to click.
The industry had suffered significant revenue losses in the previous two years, with the Malayalam film industry losing ₹650 crore to ₹700 crore in 2024 and ₹530 crore in 2025. However, the box office success of movies released during the summer vacation in April and May 2026 gave a boost to the industry. Films like Vaazha II: Biopic of a Billion Bros, Aadu 3: One Last Ride – Part 1, Drishyam 3, and Mohiniyattam performed well at the box office.
Despite the successes, there were also big disappointments, including Mahesh Narayanan’s Patriot, Dijo Jose Antony’s Pallichattambi, and Nissam Basheer’s I, Nobody. Exhibitors noted that the box office collections of Arun Anirudhan’s Athiradi and Chidambaram’s Balan: The Boy helped ease the overall tight situation witnessed in the first half of 2026.
The Kerala Film Producers’ Association (KFPA) has flagged the rising budgets amidst the increasing flops, with the remuneration of lead actors and technicians accounting for about 50% of the total budget of a movie. The association’s president, B. Rakesh, noted that the quality of critically-acclaimed and successful movies has resulted in Malayalam cinema being the talking point in other major industries in the country.
The stakeholders in Malayalam cinema are now looking forward to the movies scheduled for Onam release, including Nahas Hidhayath’s I’m Game, A.D. Gireesh’s Bethlehem Kudumba Unit, Vysakh’s Khalifa, and Jude Anthany Joseph’s Thudakkam. Exhibitors are pinning their hopes on these festival releases, anticipating increased footfalls across theatres this Onam.
Overall, the first half of 2026 ended on an overall positive note for Mollywood, thanks to the occasional hits that emerged as the saving grace. Despite the fluctuating trends in the acquisition of movies by OTT platforms, the industry is hopeful for a better second half.
