Dharmatic Entertainment, the digital arm of leading film production company Dharma Productions, has amalgamated into its parent company as part of the Bollywood powerhouse's strategy to consolidate operations amid the changing entertainment landscape.

The fast-track merger application, filed with regulatory authorities, has received approval from shareholders and creditors of both companies, according to company filings.

This is the first significant move by Dharma Productions following the sale of a 50% stake to entrepreneur Adar Poonawalla for Rs 1,000 crore last year, valuing the company at Rs 2,000 crore.

The consolidation, effective April 1, 2025, is aimed at streamlining the group structure by trimming the number of entities, cutting administrative overheads, and simplifying legal compliance.

With Dharmatic already wholly owned by Dharma, the amalgamation does not entail any financial consideration. The existing holding of Dharma Productions in Dharmatic will stand extinguished due to the merger.

“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," a company official said.

Dharmatic Entertainment was launched in 2018 as a content studio focussed on creating fiction and non-fiction content for streaming platforms. It has produced shows like Fabulous Lives vs Bollywood and Koffee with Karan for OTT platforms Netflix and JioHotstar.