MakeMyTrip Limited (NASDAQ:MMYT) shares declined about 3.5% on Monday after Morpheus Research released a short-seller report alleging anti-competitive behavior and accounting concerns at the Indian online travel company.
The report claims MakeMyTrip continues to apply price parity practices with hotel partners despite a 2022 ruling by India’s Competition Commission of India (CCI) ordering the company to stop such conduct. At the time, the regulator imposed a fine of roughly $26.1 million, citing what it described as “anti-competitive” and “abusive” practices related to the company’s hotel marketplace.
Morpheus Research, which disclosed that it holds a short position in MMYT, said it conducted interviews with 103 industry participants, including former employees. According to the report, MakeMyTrip may still enforce price parity indirectly through a “price competitiveness score” used to determine hotel rankings on its platform, even without formal contractual requirements.
The short seller also pointed to potential accounting issues, including the company’s treatment of the 2022 CCI fine. While MakeMyTrip paid a 10% deposit as part of its appeal process, Morpheus estimates that the remaining liability — including accrued interest — could reach about $34 million. The next hearing in the appeal is scheduled for April 29, 2026.
The report also highlighted a $20 million receivable tied to the insolvent airline Go Air, noting that only half of that amount has been provisioned for impairment.
Additionally, Morpheus questioned MakeMyTrip’s reliance on adjusted financial metrics. The report noted that since 2021 there has been a $212 million gap between the company’s adjusted profit figures and its profits reported under IFRS standards.
MakeMyTrip currently controls roughly 50% of India’s online travel agency market, with hotel room night bookings accounting for about 43% of its margin. The company has a market value of around $3.5 billion.
The report also claims the company is gradually losing market share to rivals such as Booking.com and its subsidiary Agoda, citing interviews with hotel and airline executives.