New Delhi: Indian Oil Corp Ltd (IOC), the leading refiner in India, announced its first profit increase in five quarters on Tuesday, thanks to a decline in crude oil prices that boosted its refining margins. As a result, the company's shares reached their highest point in over a year.

During the January-to-March quarter, IOC's profit rose to Rs 10,059 crore ($1.23 billion) from Rs 6,022 crore in the same period the previous year.

Analysts had predicted an average profit drop to Rs 5,928 crore, according to Refinitiv IBES data.

The prices of crude oil, a crucial raw material for refiners, have decreased from their peak of $139.13 per barrel in March last year.

For the fiscal year ending on March 31, IOC reported an average gross refining margin of $19.52 per barrel, compared to $11.25 per barrel in the previous year. The company did not disclose its refining margin for the quarter.

Indian refiners processed crude oil at near-record levels in March to meet strong seasonal demand, as fuel consumption reached an all-time high due to robust economic activity in the country, the world's third-largest oil consumer.

IOC, along with its subsidiary Chennai Petroleum Corp Ltd, controls about a third of India's total refining capacity of five million barrels per day.

IOC's revenue from operations increased by nearly 10% to Rs 2.26 trillion.

Last week, Hindustan Petroleum Corp Ltd, a smaller peer of IOC, also reported strong profits for the quarter.

Following the positive earnings report, IOC's shares surged approximately 4% to Rs 87.65, reaching their highest level since April 2022. The stock has gained about 14% year-to-date, outperforming Hindustan Petroleum Corp Ltd, which saw a roughly 12% increase this year.

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