- In late March 2026, activist short seller Morpheus Research released a report alleging that MakeMyTrip violated regulatory bans on price parity clauses and raised questions about accounting practices, including the treatment of a receivable from insolvent airline Go Air.
- The report also highlighted a large gap between MakeMyTrip’s adjusted profits and IFRS figures, bringing renewed attention to the company’s financial transparency and regulatory exposure.
- We’ll now explore how these regulatory and accounting allegations could affect MakeMyTrip’s previously outlined growth-focused investment narrative.
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MakeMyTrip Investment Narrative Recap
The core MakeMyTrip thesis rests on continued growth in online travel adoption, especially in India, and the company’s ability to convert that demand into sustainable profits. The Morpheus Research allegations around price parity, a Go Air receivable and adjusted vs IFRS profit gaps go straight to accounting quality and regulatory risk, which could become the key short term overhang if investigations or restatements follow. Otherwise, the main near term risk remains rising competition and marketing intensity eating into margins.
The most relevant recent announcement here is the Q3 2025 result, which showed revenue of US$295.69 million and net income of US$7.25 million, alongside a much lower net margin than the prior year. Those figures put the short seller’s focus on adjusted earnings into sharper relief, because they highlight how narrow the reported profitability cushion already is while the company continues to invest in AI features like Myra and OpenAI powered tools to support its growth story.
But before you get too comfortable, the combination of regulatory scrutiny and already thin reported margins is something investors should be aware of...
Read the full narrative on MakeMyTrip (it's free!)
MakeMyTrip's narrative projects $1.8 billion revenue and $174.9 million earnings by 2029. This requires 20.7% yearly revenue growth and about a $118.1 million earnings increase from $56.8 million today.
Uncover how MakeMyTrip's forecasts yield a $101.90 fair value, a 156% upside to its current price.
Exploring Other Perspectives
The most bearish analysts were already assuming about US$1.8 billion in 2029 revenue with margins only rising modestly, so when you layer in concerns about AI driven cost pressures and the new regulatory and accounting questions, you can see how different your own view might be from theirs and why it is worth comparing several possible paths before deciding what this stock means for your portfolio.
Explore 4 other fair value estimates on MakeMyTrip - why the stock might be a potential multi-bagger!
Decide For Yourself
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your MakeMyTrip research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
- Our free MakeMyTrip research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate MakeMyTrip's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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