Badrachalam is a action based movie in which, Parasuram (Vijay Chandar) is a coach of Japanese martial art 'TAEKWONDO' in Hyderabad. His high-headed student Suraj (Gazar Khan) becomes a cause of heartache for Parasuram.
Maha Lakshmi (Sindhu) is the daughter of Parasuram. She decides to sell off the 5 acres she owned in her village to fund the heart surgery for her father.
Maha Lakshmi meets Badrachalam (Srihari), an innocent yet very athletic guy, in that village. She invites him to come to Hyderabad and get trained in TAEKWONDO from her father. Badrachalam was thrown out of his house by the jealous sisters-in-law. Badrachalam, in a state of despair, travels to Hyderabad to meet Maha Lakshmi and learn the martial arts from her father.
Rest of the story is about how he finds the Maha Lakshmi and saves his father.