DMart's shares dropped 4% after the company reported its Q4 results, leading to a loss of approximately ₹9,300 crore (around $1.12 billion USD) in wealth for promoters, including Radhakishan Damani. While the company's profitability surpassed expectations, analysts from Elara Capital express concerns over its high trading valuations, which stand at about 64x and 55x FY27 and FY28 consensus earnings, respectively. This leaves little room for error amid challenges like slowing like-for-like (LFL) sales growth, intensified competition, and margin pressures. DMart's revenue growth is projected at 20% for FY26-28, driven by robust store additions and stable LFL growth of approximately 7–7.5% YoY. However, the company's return on capital employed (RoCE) has contracted to 15.9% in FY26, down from 17.1% in FY25, largely due to significant investments in store expansion and adverse real estate inflation. Analysts anticipate that inflationary pressures and FMCG price hikes could help improve ticket sizes, but the sustainability of margin improvements remains uncertain. Antique Stock Broking has revised its target price for DMart shares to ₹4,524 from ₹4,185 while maintaining a HOLD rating.