RoydadNaft –  Indian Oil Corporation (IOC), India’s leading state-owned refiner, reported a dramatic more than four-fold increase in third-quarter net profit on Thursday, driven by significantly improved refining margins amid a sharp drop in global crude oil prices.

The company’s standalone net profit jumped to 121.26 billion rupees ($1.34 billion) for the three months ended December 31, up from 28.74 billion rupees in the same period a year earlier.

IOC’s gross refining margin — the key measure of profit earned from turning one barrel of crude into refined products — more than doubled to $8.41 per barrel from $3.69 a year ago. This improvement came as Brent crude prices, the benchmark for many refiners, fell more than 9% during the October-December quarter, lowering input costs.

Operational revenue grew 7% year-over-year to 2.32 trillion rupees.

In the broader context, India’s fuel demand remained robust despite earlier softness. Consumption hit a record high in December after reaching a six-month peak in November, with year-on-year growth of 5.5% in November and 5.3% in December (following a 0.4% dip in October), according to data from the Petroleum Planning and Analysis Cell (PPAC). As the world’s third-largest oil consumer and importer, stronger domestic demand further supported refining profitability.

Analysts maintain a positive outlook on IOC, with a “Buy” consensus rating from 20 analysts, a forward P/E of 9.18, and an expected dividend yield of 3.76%. The stock is trading roughly in line with the average price target (ratio of 1.00).

The results highlight how falling crude prices can significantly benefit downstream refiners like IOC, even as upstream producers face pressure from lower realizations.