All the issues regarding the theatrical release of Kantara: Chapter 1 in Kerala have been resolved following discussions between the Film Chamber, Producers’ Association, Distributors’ Association, and the Film Exhibitors United Organisation of Kerala (FEUOK).

The Kerala release of Rishab Shetty's sequel to the blockbuster 2022 film Kantara ran into trouble, following a dispute over a profit-sharing agreement between the film's distributors and exhibitors. Prithviraj Productions and Listin Stephen's Magic Frames, who are jointly releasing the film in Kerala, demanded a 55 per cent profit share from theatre collections for the first two weeks of the film's release. It exceeds the existing 50 per cent profit share fixed by FEUOK, who threatened to halt the film's screening in the state.

As per the latest agreement, the distributors will receive 55 per cent in the first 14 days without any holdover clause and 50 per cent share after that. Both Prithviraj and Listin welcomed the decision to screen the film without holdover restrictions.

Kantara: Chapter 1 is directed and headlined by Rishab, with Vijay Kiragandur's Hombale Films backing it. As per the makers, the film, set in the 4th century, explores the grandeur, culture, and mysticism of an era rarely depicted in Indian cinema. The film is set for a multilingual release on October 2.