Shares of MakeMyTrip (MMYT) fell nearly 4% on Monday following a scathing report by activist short-seller Morpheus Research. The report, titled “How India’s Largest Travel Platform Openly Defies Regulators,” alleges that the company is engaged in a widespread pattern of anti-competitive behavior, accounting “tricks,” and systemic safety failures.
The report comes at a precarious time for the NASDAQ-listed firm, which has already seen its stock price collapse by over 60% in the last year due to surging oil prices and the ongoing West Asia energy crisis.
1. Key Allegations: Defying the Regulator
The central claim of the 103-interview investigation is that MakeMyTrip is intentionally circumventing a 2022 Competition Commission of India (CCI) order.
- “Ghost” Price Parity: While MakeMyTrip officially removed price parity clauses from its contracts after being fined $26.1 million in 2022, Morpheus alleges the company now uses a “Price Competitiveness Score” to punish hotels that offer lower rates on other platforms.
- Algorithmic Penalties: Hotels with low parity scores allegedly see their visibility and rankings “shadow-banned” or suppressed on the app, effectively forcing them back into parity without a formal contract.
- New Investigation: Morpheus claims to have uncovered a new, undisclosed CCI probe into “hub-and-spoke” anti-competitive behavior, with a Director General’s report expected in early 2026.
2. Accounting “Tricks” & Hidden Liabilities
The short-seller raised several red flags regarding MakeMyTrip’s financial health and its reporting of “Adjusted” metrics.
- The GoAir Hole: MakeMyTrip reportedly has a $20 million (₹180 crore) receivable from the insolvent airline Go Air, but has allegedly only provisioned for half of that amount, leaving a $10 million “time bomb” on the balance sheet.
- Unprovisioned Fines: The company has reportedly failed to provision for the full remaining balance of its 2022 CCI fine. While it paid a 10% deposit for its appeal, Morpheus estimates the total liability (with interest) now exceeds $34 million.
- Profit Discrepancy: The report highlights a staggering $212 million gap between the company’s self-reported “Adjusted Profits” and its IFRS-compliant figures since 2021.
3. Safety & “Bad Actor” Hotels
In a particularly damaging section, Morpheus analyzed over 3,600 budget properties in major Indian metros and alleged that MakeMyTrip fails to protect travelers.
- Safety Negligence: In nearly 10% of cases reviewed in Delhi, Mumbai, and Bengaluru, travelers reported serious issues including extortion at check-in, hidden cameras, and threats to women’s safety.
- Persistent Listings: Despite these reviews, and even after being notified of specific incidents (like a hidden camera case), the report alleges MakeMyTrip frequently offers only a partial refund and refuses to delist the properties.
- Unregistered Properties: The report claims MakeMyTrip continues to list hundreds of hotels that do not possess the mandatory state tourism registration numbers.
4. Market Impact & Stock Performance
MakeMyTrip’s stock, which recently hit a 52-week low of $38.21, faced renewed pressure as the Nasdaq entered “correction territory” today.
| Metric | Value (March 31, 2026) |
| MMYT Share Price | ~$36.69 |
| Market Cap | ~$3.5 Billion |
| 52-Week High | ~$110.00 |
| Short-Seller Target | “Significant Downside” |
[Image showing MakeMyTrip’s declining market share vs. Booking.com and Agoda in India]
5. MakeMyTrip’s Potential Counter-Move
Earlier this month, MakeMyTrip hinted at an internal restructuring and a potential India-based listing for its domestic business to “catalyze growth.” Analysts believe the Morpheus report could derail these IPO plans or force the company to provide a detailed, audited rebuttal to restore investor confidence.
