Set in Visakhapatnam, the film follows Chitti Babu, Rajendra Prasad, a highly educated yet idle man who places immense faith in astrology and fortune. He is convinced by an astrologer, Poompuhar Devagna Sarma, that he possesses Rajayogam and will rise to become a king within a year. Chitti Babu lives with his mother and his sister Kunthi, who presses him to arrange her marriage and even threatens to elope if it isn’t done soon.
Meanwhile, Royyala Naidu, Rao Gopal Rao, a wealthy self-made businessman, refuses to let his daughter, Rambha Rambha, marry a rich but lazy man presented by a matchmaker. He insists that she wed someone who is hardworking, even if poorer in money. Chitti Babu saves Rambha from some bullies, and during the confrontation, a lizard falls on him, prompting a consultation with the astrologer, who predicts danger will come from a virgin girl. Soon after, Chitti Babu becomes the victim of an accident caused by Rambha’s car, and she falls in love with him. Rambha offers him a job at her father’s company, but he initially declines, feeling it beneath his dignity. Yet under pressure from his sister, he reluctantly accepts.
Initially disapproving of Rambha’s love for Chitti Babu, Royyala Naidu reluctantly agrees to the marriage when Rambha attempts suicide. However, he imposes a condition: Chitti Babu must pay a dowry of ₹1,00,000. To raise the money, Chitti Babu fills the wedding venue with a large crowd of guests, hoping to receive gifts from strangers. After the ceremony, Royyala Naidu thwarts the plan and adds further conditions, including barring the couple’s first night until the dowry is fully paid.
Royyala Naidu ultimately offers to accept the dowry in four installments. Determined to raise the funds, Chitti Babu turns to clever schemes, including selling a supposedly speaking goat to a gullible buyer and posing as a blind man to obtain a loan. His schemes unravel when the buyer and the loan officer turn out to be friends or relatives of Royyala Naidu, exposing the deception and leading Naidu to expel him.
The humiliation of Chitti Babu’s mother by Royyala Naidu pushes him to divorce Rambha. In response, Naidu arranges Rambha’s remarriage. Heartbroken, Chitti Babu defends his right to stop the marriage, and Naidu offers a final chance: if Chitti Babu clears the debt, the marriage will be cancelled.
Meanwhile, Kunthi agrees to marry an elderly man to raise the money for the dowry. After much soul-searching, Chitti Babu sets out to forge his fortune. His initial efforts falter, but he soon encounters a cloth mill owner who is on the verge of suicide after bankruptcy. With wit and creative thinking, Chitti Babu transforms the mill into a profitable venture by introducing new designs, rapidly amassing wealth.
Returning to the wedding hall, he discovers Kunthi is about to marry the elderly man, only to learn that Royyala Naidu orchestrated the entire setup to reform him. The story ends with Chitti Babu and Rambha finally uniting in marriage, their renewed futures secured by his newfound resolve and financial success.