MakeMyTrip Ltd (NASDAQ:MMYT) shares faced downward pressure on Monday following a report from Morpheus Research, an activist short-selling firm.
Morpheus Research, reportedly composed of several Hindenburg Research alumni, earned a public endorsement from Hindenburg founder Nathan Anderson, who called them a “great team” he has “known for a long time.”
The report alleged India's largest online travel agency (OTA) was “openly” defying regulators, utilizing accounting “gimmicks” and failed to protect customers from “bad actor” hotels.
Allegations of Regulatory Violations
Morpheus Research claimed MakeMyTrip continued to enforce “price parity” clauses despite a 2022 order from the Competition Commission of India (CCI) to halt the practice. The report cited interviews with 103 industry experts and former employees.
“It is still there [price parity] … They got away with it,” stated a leader from the Federation of Hotel & Restaurant Associations of India (FHRAI) in the report. Morpheus further alleged an undisclosed “hub-and-spoke” cartel investigation is currently underway by the CCI, with findings expected in early 2026.
Accounting Red Flags and Profit Padding
The short seller raised concerns regarding MakeMyTrip's financial transparency. The report highlights a $20 million receivable from the insolvent Go Air, which competitors have reportedly written off. Morpheus also took aim at “adjusted” metrics, noting a $212 million discrepancy between the company's “adjusted” profits and International Financial Reporting Standards (IFRS) figures since 2021.
“MakeMyTrip's ‘adjustments' have represented 76% of its total adjusted profit,” the report stated, comparing it to much lower percentages at peers Booking Holdings Inc.’s (NASDAQ:BKNG) and Expedia Group Inc (NASDAQ:EXPE).
Market Share Erosion
Despite CEO Rajesh Magow's July 2025 claim that the company only “theoretically” competes, Morpheus alleged MakeMyTrip is losing ground to Booking Holding’s Booking.com and Agoda. The report claims MakeMyTrip's wallet share with Marriott Hotels in India dropped from 38% in 2022 to 31% today.
Safety and Ethics Concerns
The report identifies 113 hotels on the platform with reviews highlighting women's safety issues. It also alleges the use of “dark patterns” — deceptive web designs — to trick users into buying “mandatory” insurance or paying hidden “convenience fees” at checkout.
MakeMyTrip did not immediately respond to Benzinga's request for comment.
MMYT Stock Price Activity: MakeMyTrip shares were down 0.33% at $36.21 at the time of publication on Monday, according to Benzinga Pro data.
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