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Naga Vamsi says he suffered massive losses due to War 2, says Yash Raj Films paid him Rs 18 cr: ‘I made certain mistakes’

Calling 2025 a bad year, producer Naga Vamsi admitted: “I made certain mistakes, and I cannot blame anyone else for them. I made some arrogant decisions.”

War 2, Naga VamsiWar 2 released in August. (Photo: IMDb)

Producer Naga Vamsi is widely known for backing commercial successes under his banner Sithara Entertainments, a subsidiary of its parent company Haarika & Haasini Creations, owned by S Radha Krishna. Over the years, he has delivered several blockbuster hits such as Ala Vaikunthapurramuloo, Jersey, Bheemla Nayak, Bheeshma, DJ Tillu, Tillu Square, MAD, and Lucky Bhaskar. However, 2025 proved to be a difficult year for the producer. Social media users, particularly on Twitter, speculated that two major reasons behind his setbacks were Kingdom and War 2 (which he distributed in the Telugu states).

In a recent conversation with Great Andhra, Naga Vamsi opened up about the phase he is currently going through. He said: “It’s not the failures that bother me, but right now I am in a situation where I cannot afford any mistake, both personally and professionally. At this point, I cannot take any risks.”

Calling 2025 a bad year, he admitted: “I made certain mistakes, and I cannot blame anyone else for them. I made some arrogant decisions.”

Speaking about his uncle S Radha Krishna, the owner of Haarika & Haasini Creations and someone he considers a mentor, Naga Vamsi revealed that despite the setbacks, his uncle reacted with calm logic rather than disappointment.

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“My uncle doesn’t get disappointed when we fail, but he feels terrible when we put massive money into a film and it doesn’t benefit either the producers or distributors. His question is simple—what’s the point of making big-budget films when our small-budget films are working in our favour?”

He further explained his uncle’s perspective: “His logic is that if we make three small-budget films, at least two of them will definitely work. Then why should we desperately chase big-budget films?”

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Addressing the War 2 controversy, which many claimed damaged his reputation, Naga Vamsi clarified the financial reality: “People on Twitter spread rumours that I lost huge money on War. Yes, our balance sheet for the year is negative, but the situation isn’t as bad as people make it out to be. I bought War for Rs 68 crore, with an additional Rs 12 crore as GST. I received around Rs 35–40 crore in shares. The team at Yash Raj Films even called us upfront and paid Rs 18 crore.”

He questioned the narrative surrounding his image: “People say my image is damaged because of Kingdom and War 2. Now, Kingdom—yes, that is my own failure. But how am I responsible for the failure of War 2? How does a distributor’s image get ruined if a film fails? Did the failure of Kingdom affect Dil Raju? Then how am I affected by War 2?”

Providing clarity on the losses, he added: “We invested a total of Rs 80 crore. I got back Rs 12 crore as GST refund, and Yash Raj Films returned another Rs 18 crore. Yes, I did lose money, but the damage was minimised.”

Concluding the conversation, Naga Vamsi said: “The 2025 balance sheet for my buyers has been negative. All I can do now is work towards turning it positive. This is a process—it’s business.”

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It is worth noting that Naga Vamsi reportedly invested Rs 130 crore in the making of Kingdom, while the film managed to earn only Rs 82 crore worldwide, contributing significantly to the setbacks he faced this year.

 

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