VRL Logistics share price showing 50% fall on some mobile trading apps; here’s why

VRL Logistics Ltd shares turned ex-bonus in the ratio of 1:1 on Thursday, August 14. Adjusted of bonus issue, the VRL Logistics stock opened 0.41 per cent lower at Rs 280 on NSE. It was, however, down 49.79 per cent over yesterday’s closing price (unadjusted) of Rs 557.65. It is possible that trading apps of certain brokerages might be showing the unadjusted VRL Logistics price for yesterday and, thus, suggesting a 50 per cent-plus fall on the counter.

Since August 14 is also the record date, the company will determine such eligible shareholders today only. The bonus share would be credited to investors soon.

A bonus issue increases the number of outstanding equity shares, but reduces share price in proportion to number of bonus shares issued.

Bonus shares are issued from free reserves and surplus of the company, with the aim of increasing liquidity on the counter. In the case of VRL Logistics, the bonus ratio was set at 1:1, which means one new fully paid-up share of VRL Logistics would be issued to existing shareholders for every one share they held.

Last week, Emkay Global downgraded VRL Logistics to ‘Add’ from ‘Buy’, with a revised June 2026 target price of Rs 600, as it expects revenue trajectory for VRL Logistics to remain tepid over the medium term.

“With lines blurring between express and PTL operators, competitive intensity is likely to pick up in inter-state routes and for the door-to-door segment of VRL, in our view. In the absence of a strong volume trajectory, inflationary costs would likely lead to margin contraction from the highs seen in H2FY25,” Emkay Global said.

While the domestic brokerage remained constructive on VRL’s strategy and business model, the challenging environment and the impending shift from unorganized to organized players in the PTL industry taking longer than anticipated would weigh on the stock price performance, it said.

“We trim our FY26/27 revenue estimates by 4 per cent each, as we now expect volume CAGR of 3 per cent (vs 4 per cent earlier) over FY25-28E. Undemanding valuations  and benefits of price hikes taken in FY25 should sustain profitability and cash-flow generation (FCF yield of 5 per cent in FY27E),” it said.

Another brokerage Nuvama remained positive on the stock as strong gross profit growth suggests actions are yielding results. It said the base would normalise in Q4FY26 and cited robust RoCE profile for VRL Logistics to suggest ‘Buy’ on the stock with a June 2026 target of Rs 770 against Rs 750 earlier.