Stratospheric star pays haunt Tollywood

Hyderabad: As we enter the New Year 2026, the Telugu film industry finds itself at a decisive moment in which there is dire need for directing collective efforts at ensuring that a fair share in rewards and risks becomes the norm, instead of remaining a far cry. It is a different matter that Tollywood is more visible on the global stage than ever before, thanks to multiple recent pan-India blockbusters and expanding overseas markets. Amidst all this positive vibes, there is growing concern within trade circles about the long-term sustainability of mounting production costs, particularly lead star remunerations.

The pan-India wave of some of the recent blockbusters has dramatically reshaped the economics of Telugu cinema. Lead actor fees are no longer restricted to regional standards; they are now tied to benchmarks set at the national level. At the top of the earnings pyramid this year is Allu Arjun, who reportedly received a staggering Rs 300 crore for ‘Pushpa 2: The Rule’, placing him among the highest-paid actors in the history of Indian cinema. Close behind are stars like Prabhas and Mahesh Babu, whose remuneration packages are said to range between Rs 100 crore and Rs 200 crore, often structured through hefty upfront payments or profit-sharing models. ‘RRR’ stars Ram Charan and Jr NTR continue to command massive pay checks, with Ram Charan reportedly charging in the range of Rs 100–130 crore per film, while Jr NTR’s remuneration is said to be around Rs 80–100 crore.

Even films that are not positioned as pan-India spectacles are witnessing astronomical costs when it comes to the lead star’s pay. Industry buzz suggests that Pawan Kalyan has reportedly charged around Rs 170 crore for ‘Ustaad Bhagat Singh’, while Megastar Chiranjeevi is said to be drawing nearly Rs 70 crore for ‘Mana Shankara Varaprasad Garu’. Balakrishna, too, is believed to be earning close to Rs 30 crore for ‘Akhanda 2’. Stars with relatively less pulling power such as Nani and Vijay Deverakonda are now commanding fees in the Rs 35–45 crore bracket—something unimaginable just a few years ago. Trade analysts point out that in several cases, nearly 60 per cent of a film’s total budget goes towards the lead actor’s pay.

This leaves limited leeway for investments in visual effects, production design, marketing, or even script development, increasing the financial risk for producers.

Although star power continues to guarantee strong openings, insiders caution that rising costs could skew the ecosystem further if box-office results do not consistently match expectations.

Many believe the way forward lies in a more balanced model—where storytelling takes precedence, budgets are planned realistically, and stars as well as producers share both risks and rewards.

As Tollywood charts its next phase of growth, the industry’s biggest challenge may not be scale or ambition, but strong financial discipline that removes aberrations in the pay for lead stars.