Balu is about a youngster who is ready to sacrifice everything he had for the sake of good.Ghani (Pawan) is an orphan raised by Delhi’s new don – Khan (Gulshan Grover) who is also from Hyderabad. He turns into Khan’s henchman committing all the crimes his boss wants, until one day when he refuses to kill a man. The reason behind his decision leads to a sub plot. Khan plans to eliminate Ghani for his betrayal, but his plan is unsuccessful and it leaves the hero with a mere wound, while the girl Indu gets killed in the combat. The next episode opens in Hyderabad where Pawan Kalyan christens himself as Balu, the name his dead lover used to call him. He is a in the market area, and is on a mission to eliminate the local mafia head Nayudamma, who has control over the land. But, why should Balu try to eliminate Nayudamma who has no connection to his past? How do Shriya and Pawan Kalyan meet and what’s the revenge factor in the film? The answers to these form the story’s crux.