Karan Johar reveals people get shocked seeing profit and loss statements of Dharma Productions: 'It’s nothing'

The reality of the industry often differs from public perception. Karan Johar has revealed that the financial realities of Dharma Productions often surprise people, as profits are not always as high as expected. Johar shared that the industry's perception differs from the actual financial outcomes, with many questioning the profitability of filmmaking. He emphasized that making movies is driven by passion rather than pure financial logic.

Karan Johar said, "As they say, our industry looks better from the outside. When I talk to industrialists and other members of the corporate industry, we are nothing... They look at our P&L statements, and they say, 'That's it? Is this all you have to show for all the work you do?' And my response is always, 'In our business, we don't look at numbers, we respond to hearts. We make movies not with our brains, but with our hearts."

Dharma Productions financial realities

Karan Johar's recent comments about Dharma Productions' financial realities echo a strategic move from last year. He sold a 50% stake to Serum Institute's CEO, Adar Poonawalla, with Poonawalla investing Rs 1000 crore into Dharma Productions and Dharmatic Entertainment. Discussing this new venture at the CNBC-TV18 Global Leadership Summit, Karan Johar highlighted the significance of the partnership.

"I feel this is a great marriage of two minds," he stated, adding, "It was an easy decision for us, and we truly believe this is the best partnership for the growth we envision." Johar explained his need for a partner to provide fresh business insights.

"I needed the partnership for that... someone who could help me create a vision and contribute strongly to growth with their business insight."

Karan Johar’s candid insights into partnership with Adar Poonawalla

Adar Poonawalla's entry into the media industry was unexpected, even for Poonawalla himself. "I was as shocked as everyone else was for making this move," he said and added, "It's not such a bad business opportunity... with the verticals like music distribution and content creation, these are areas that will thrive in the next 5-7 years."

Karan Johar said, "I didn't know I had a value. I found out. I've to say this. I'm probably not going to come across as clever. I want to come across as who I am. I was traumatised in so many of those meetings. I'm a creative artist. I don't know what's a 'put' and a 'call, a 'drag' and a 'tag.' He (Adar) kept saying, 'I'm going to drag and you're going to tag. I know 'drag' in a totally different way. I know what a 'tag' is in the price tag I pay in the retail zone. I know 'put' and 'call' in a very different way altogether."

"I had no idea what was happening when those Excel sheets would come in front of me. Your reality is staring at you. You think you've done something so wide and vast, and then there's a value put. So when people tell Adar, 'You've paid so much money!' I say, 'Has he really?'," Karan added.

What this means for Dharma Productions

With Adar Poonawalla managing the business aspects and Karan Johar focusing on creative direction, there's anticipation that Dharma Productions' profits will grow significantly. Fans are optimistic, particularly given Johar's plans to return to directing in 2026, following the success of Rocky Aur Rani Kii Prem Kahaani.