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SS Rajamouli's Varanasi faces financial hurdles amid rising production costs

SS Rajamouli's film Varanasi, starring Mahesh Babu and Priyanka Chopra, is encountering financial difficulties due to rising production costs, which are estimated between ₹1,200 crore and ₹1,400 crore. As streaming platforms are limiting offers for digital rights to ₹150 crore to ₹200 crore, the team needs to strategize on managing expenses while still pursuing their ambitious vision.

BRIC Team
BRIC Team
Jun 17, 2026 · 2 min read
SS Rajamouli's Varanasi faces financial hurdles amid rising production costs

Key Takeaways

  • Varanasi's production budget is estimated between ₹1,200 crore and ₹1,400 crore, making it one of India's most expensive films ever.
  • Filmmakers initially aimed for ₹500 crore to ₹600 crore from digital rights, but offers now cap at ₹150 crore to ₹200 crore.
  • Rajamouli may consider reducing his fee, but his earnings are typically tied to box office performance, complicating financial recovery.
  • Industry experts warn that recovering substantial investments has become increasingly difficult, stating, 'Extraordinary box office milestones have only become more difficult.'
  • Despite financial challenges, Varanasi remains highly anticipated due to Rajamouli's track record and Mahesh Babu's popularity.

SS Rajamouli’s much-awaited film Varanasi, with stars like Mahesh Babu,Priyanka Chopra,and Prithviraj Sukumaran, is reportedly running into big money troubles as production costs skyrocket past initial estimates. This film,set to be one of India's priciest ever, has a budget pegged between ₹1,200 crore and ₹1,400 crore.

As project moves along,its financial planning is under microscope,especially with changing dynamics in digital streaming market. Filmmakers initially aimed to recoup big chunk of budget through digital rights, eyeing an OTT deal worth around ₹500 crore to ₹600 crore. But now,reports say streaming platforms are more cautious, often capping offers at ₹150 crore to ₹200 crore,even for films with major stars.

This OTT market shift has ramped up pressure on big productions like Varanasi, making cost control crucial. Sources close to the film say team is actively looking for ways to cut expenses while keeping ambitious vision intact. Options include tightening shooting schedule and choosing more affordable locations over expensive overseas sites.

There's talk Rajamouli might cut his fee to ease financial strain . But insiders suggest this may not have much impact,since the director usually works on a profit-sharing basis, not a big upfront salary. His earnings are tied to box office results, adding another layer of complexity to money issues.

Industry experts say challenges facing Varanasi reflect wider trends in film world,where recouping huge investments is getting tougher. “Extraordinary box office milestones have only become more difficult,” one observer said,stressing need for careful financial planning in today's market .

Despite these obstacles, buzz for Varanasi remains strong. It's one of most anticipated Indian films, boosted by Rajamouli's stellar track record and Mahesh Babu's broad appeal. As project nears completion, focus will be on whether team can balance their grand cinematic dreams with commercial reality.

With release looming, industry watches closely. Stakes are high, and path ahead will need careful navigation of creative goals and financial limits…

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