When Karan Johar's Dharma Productions sold Adar Poonawalla a 50% stake for ₹1000 crore earlier this month, it caused quite a stir in the film industry.

Dharma, one of the largest and most significant production companies in Indian cinema, was long regarded as unfailing, nearly unbeatable. The transaction, however, revealed that beneath the company's glamorous façade, there were numerous issues. The company's financials, which were made public this week, now demonstrate how bad things were.

According to an unnamed insider, "Dharma had a lot of problems in 2023–2024. At the box office, Yodha and Selfiee were huge letdowns. Additionally, Koffee With Karan did not attract the same level of interest as it had during its peak. 

Cash flow was severely reduced as a result. Insiders claim that despite Karan Johar's desire to keep control of his father's business, he was nearly pressured to sell the stake.