May 16, 2026 6:06pm IST
Theater Issue Resolved: All Decks Cleared for Ram Charan’s ‘Peddi’
Telugu cinema is entering a turbulent phase, in which massive budgets, rising theatrical pressures, and changing business models are upending the established system. Right at the center of this storm is “Peddi,” the ambitious pan-India sports action drama, starring Ram Charan and directed by Buchi Babu Sana.
Made on a reported budget of nearly Rs 350 crore, “Peddi” has already become one of the costliest Telugu films ever produced. A project of this scale depends on smooth theatrical operations across Telugu states, especially Telangana.
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That is exactly why the ongoing conflict between exhibitors and producers has become a major concern for the film’s team. The issue revolves around the long-debated percentage model. Telangana single-screen exhibitors have been demanding a shift from the existing rental system to a revenue-sharing structure, arguing that many theaters are struggling financially.
With maintenance costs rising and footfalls fluctuating after the pandemic era, exhibitors believe the current system is no longer sustainable for smaller centers. However, producers are equally worried. Big-budget films like “Peddi” will recover investments largely through theatrical business, satellite rights, digital deals and overseas collections. But what about low-budget films? Apart from a few, there are no takers for these films even on OTT.
Any disruption in Telangana, one of the biggest markets for Telugu cinema, could significantly impact opening numbers and overall revenue. This explains the emotional appeal made by producer Venkata Satish Kilaru during the recent Film Chamber meeting, which happened on May 15, 2026, and was attended by Dil Raju representing the exhibitors and Naga Vamsi and his team from the producers' side. The producer reminded exhibitors that “Peddi” had already faced release postponements from March 27 to April 30 and requested that the film not become a casualty of the ongoing dispute.
For a film carrying enormous financial pressure, even minor release uncertainty can create panic among distributors and investors. Fortunately, the latest discussions seem to have brought temporary relief. Producer Dil Raju confirms that talks have been positive and that a committee has been formed to explore solutions for A, B, and C centers, which are villages, district headquarters and small towns, respectively. More importantly, exhibitors have reportedly agreed to cooperate with “Peddi” distributors for now.
Beyond the business angle, the situation also reflects how much is riding on “Peddi.” The film is not just another commercial entertainer. It is seen as a major theatrical event for Telugu cinema and a crucial project for Ram Charan after the global attention on “RRR.”
With the huge financial stake involved and the high expectations from the film, the industry is watching “Peddi” closely. Directed by Buchi Babu Sana, the film hits the screens on June 4, 2026.
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