Dharmatic Entertainment, the digital arm of Dharma Productions, has now officially merged with its parent company, as per a recent article in The Economic Times. The story says that the move is part of Dharma’s plan “to consolidate operations amid the changing entertainment landscape”. It also said that the merger application was fast-tracked and has already been approved by both companies’ shareholders and creditors, according to official filings.
REVEALED: Karan Johar’s Dharma Productions merges Dharmatic Entertainment to simplify operations
This is one of Dharma Productions’ first big steps since entrepreneur Adar Poonawalla bought a 50% stake in the company for Rs. 1,000 crores last year, valuing Dharma at Rs. 2,000 crores. Another significant decision taken by Dharma head-honcho after the merger was to start a distribution arm. In a recent interview with Komal Nahta, KJo confessed that the partnership with Adar Poonawalla gave him the impetus to get into distribution.
The Economic Times article further revealed that the amalgamation of Dharmatic Entertainment and Dharma Productions is effective from April 1, 2025, and is expected to make the company’s structure simpler by reducing the number of subsidiaries, cutting costs, and easing legal work.
Since Dharmatic was already fully owned by Dharma, no money was exchanged as part of the deal. The shares that Dharma held in Dharmatic will now be cancelled. The article carried a statement by a company official who said, “Dharmatic was envisioned as a digital-first creative studio, but the industry has evolved in ways that make integrated operations more impactful. This merger allows us to optimize resources and run a leaner, more efficient organization while continuing to tell powerful stories across platforms.”
Dharmatic Entertainment was launched in 2018 with the aim of producing digital shows and films. They produced non-fiction shows like Koffee With Karan, Fabulous Lives Of Bollywood Wives, The Tribe and Love Storiyaan and fictional titles like The Fame Game, Showtime, Gyaarah Gyaarah and Do You Wanna Partner. The web films made by Dharmatic are Guilty (2020), Ajeeb Daastaans (2021), Searching For Sheela (2021; non-fiction), Meenakshi Sundareshwar (2021), Ae Watan Mere Watan (2024), Nadaaniyan (2025) and Aap Jaisa Koi (2025). Interestingly, Sarzameen (2025) was released directly on JioHotstar but it was produced under Dharma Productions.
Also Read: How Yash Johar’s generosity during Agneepath shoot came back to Karan Johar as a land offer in Goa: “He was giving HUGE parcel of land to me for FREE…sometimes I SLAP myself for declining the offer”
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