Share your experience of negotiating better salary at current org by counter offer

In this year's appraisal cycle, I got a good performance rating but bad hike and no promotion 😔 Currently multiple projects are highly dependant on me, and it will be difficult for the company to find a good replacement (Subtle flex, but it's true), and due to this I feel like I'm underpaid at my current level.

Have you ever been in a similar situation? How did you negotiate a better salary? Should I look for a better offer outside and ask my current org if they can match it or resign? Because next appraisal/promotion will only happen a year later from now.

Please share your experience of negotiating better salary at current org by getting a better offer outside, how did it go and what was the outcome?