The 30-year-old man, who suffered burns over 70 percent of his body in the Sunday incident, was protesting the screening of "Fanaa" or "Self-destruction," in the city of Jamnagar, the Times of India newspaper reported.
The Jamnagar theater is the only cinema to defy an unofficial ban on the film in the western state of Gujarat. The owner went ahead with screenings after the Supreme Court ruled police protection would be offered to theaters showing the film.
"Fanaa" has been opposed by supporters of the state's massive Narmada dam project because the lead actor, Aamir Khan, has called for more compensation for the 35,000 people who will be displaced.
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