Management coming in on the show. We come to you live from the CNBC TV8 Motilal Oswal studio. It's Tata Consumer which reported a largely in-line set of numbers in the fourth quarter. The EBITDA beat estimates despite gross margins compressing by 420 basis points. We have with us Sunil D'Souza who's the MD and CEO of the company. Thanks a lot, Mr. D'Souza, for joining in right now. The most important thing that the street wants to know this time around for the next one year is what is your target on the margins? You said that if tea prices were to normalize, you could see margins normalize as well. The question is what is that normalized level? And secondly, what's your expected target for NourishCo, Capital Foods, and Organic India in FY26? These three numbers if you could provide us.
So Mangalam, we had a good quarter, in line with our expectations, actually slightly ahead of expectations. As to your question on forecast for FY26, double-digit volume, double-digit revenue growth is a given. We've already seen volume growth across all our businesses this quarter. We have every single business growing on revenue as well. 17% topline, 12% organic. EBITDA margins were a bit soft and if you look at it overall EBITDA was negative 1.1%, but here's the thing—the primary compression has been because of tea prices which have run up 25 to 30%. We've absorbed about 50% and passed on about 50% of the prices. So two things are going to happen. A is we're going to continue to take calibrated price increases as we go forward, but also as the new crop comes in if it is normal, we expect tea prices to start coming down. That will aid margins. Just as a perspective, while we say margins are going to improve, if I took off both the cost and price increases that we took on tea this quarter, I have improved my full year by 80 bips. Our guidance is for improvement of 50 to 100 bips every year on EBITDA margins and that doesn't change.
As regard the question of starting with NourishCo—about a year back we had pressure from competitors who went in with significantly higher retail margins. No changes on consumer price, which was 10 rupees in Tata Gluco Plus, and we had to recalibrate our retail margins. We did that and we rejigged our distribution system etc. to the new reality, and it's coming back very strongly. Actually we exited March at a 38% volume, 26% revenue, and for the quarter it was 17% volume, 10% revenue. So it's back on growth. We do expect it to come to 30% and there's no reason why—the Himalayan business which is premium grew by 29% and Tata Copper our water business grew by 23%. So largely on track.
As regards Capital Foods and Organic India, the good part is we finished the integration. We've taken synergies out, we understood the business, and I would underline that because it took us about four to five months to understand the nuances of the two businesses—different product, different buying cycles, procurement, supply chains, marketing—and now I think we are in full control. This quarter I think we delivered some decent numbers: 213 crores of Capital Foods, 109 on Organic India. Actually if you take growth rates it's 80 and 40-plus in the two businesses, but that's because we had soft quarters last year in Q4. But we feel pretty confident of delivering 30% growth going forward, with a focus on distribution expansion, innovation, and portfolio expansion as well.
Hi Mr. D'Souza, good morning and good to see you. I wanted a couple of other points on the international business. What kind of a growth are you guiding for? On a blended basis, last year's growth was better than what the street was working with, so that's good. For this year, what will international business look like? And what is the targeted ROE? You know, it's still in the mid-single digits, so where do you see that headed?
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