Dharma Productions has merged its digital arm, Dharmatic Entertainment, into the parent company as part of its strategy to consolidate operations amid a rapidly evolving entertainment landscape. The decision marks a significant shift for the Karan Johar-led production house, which continues to adapt to changes in the film and OTT ecosystem.

According to The Economic Times, the fast-track merger application filed with the regulatory authorities has received approval from shareholders and creditors of both companies. The merger officially takes effect from April 1, 2025. This development also follows last year’s deal in which entrepreneur Adar Poonawalla acquired a 50 percent stake in Dharma Productions for Rs.1,000 crore, valuing the company at Rs.2,000 crore.

The consolidation aims to streamline Dharma’s group structure by reducing the number of entities under its umbrella, cutting down administrative costs, and simplifying legal compliance. Since Dharmatic was already a wholly owned subsidiary, the merger does not involve any financial consideration. The existing holding of Dharma Productions in Dharmatic will automatically stand extinguished after the amalgamation.