"Sultan", which reportedly registered a Rs 300-crore collection in India, had made Rs 180.36 crore in the first week.
"Dangal", which released on December 23, collected Rs 20.29 crore on Thursday and is now expected to cross the Rs 200-crore mark on Friday, read a statement issued on behalf of Disney India, which has backed the Nitesh Tiwari directorial.
The movie has tugged at the heartstrings of audiences for its powerful portrayal of the tale of Mahavir Singh Phogat, a former national champion who, much to the disapproval of his wife and his whole village, trained his daughters Geeta and Babita to wrestle.
Trade Analyst Taran Adarsh said that "Dangal" has stood out as a "winner".
"'Dangal' emerges a winner. Collects a whopping Rs 197.53 crore net in week one. Expected to sprint towards Rs 250 crore by weekend two," Adarsh posted on Twitter on Friday.
"'Dangal' reign to remain unopposed, unchallenged for another week. Question is, when will it hit Rs 300 crore mark? Will it challenge 'Sultan'?" Adarsh added.