Kanalkannadi delves into the life of Indu Lakshmi who fights against the injustice perpetrated against women. Indu Lakshmi had come to Thiruvananthapuram to carry out her research in Sociology, which centered around the alarming rate of suicides in the city. What greeted her the day she reached there was the suicide of the Medical student Anamika. Indu probes into the case with a strong support from her grandfather and freedom fighter Kambayil Siddharthmenon. Even though her fiancee Anubhaskar did not approve of her activites she did not pay heed to it.
Indu Lakshmi's efforts soon bear fruits and the mystery behind Anamika's suicide slowly comes to the light. However, it also brings to the forefront those who behind this suicide. They turn against Indu Laksmi. Karthika is playing the pivotal role of Indu Lakshmi, while Madhu comes as Kamabayil Siddharthamenon and Indrajith as Anu Bhaskar. Jayan Pothuval is directing this film under the banner of Hare Krishna Creations. Others in the movie are Madhu Warrier, Vijayaraghavan, Shelley, Vaikkom Shakeer, Ravi Vallathol, Geetha Salam and Shanthakumari.