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"Dangal" pulled in around 3.45 billion rupees ($50 million) in net domestic revenue by Sunday, trade sources said, overtaking PK's box office haul of 3.38 billion rupees ($49 million).
The film, directed by Nitesh Tiwari, is based on real-life wrestler Mahavir Singh Phogat and his struggle to turn his daughters into world-class wrestlers. The film is still in cinemas and doesn't face competition till January's big release next week - Shah Rukh Khan's "Raees".
Aamir Khan's penchant for choosing stories that reflect Indian themes and a publicity blitzkrieg seems to have paid off. Three of the four top-grossing Hindi films of all time feature the 51-year-old actor in the lead, with only Salman Khan's 2015 "Bajrangi Bhaijaan" breaking the monopoly.
The critically acclaimed "Dangal" opened in cinemas on Dec. 23 and took in more than a billion rupees ($14 million) in domestic ticket sales in three days.
For a movie industry with only one blockbuster for much of 2016 (Salman Khan's "Sultan", also the story of a wrestler), the success of "Dangal" comes as a huge relief to film-makers, and allayed concerns that box office collections would be affected by India's demonetisation of high-value currency notes.
Reporting by Shilpa Jamkhandikar; editing by Tony Tharakan