"It is learnt that one Indian national injured in the Riyadh attack has unfortunately lost his life today. We convey our heartfelt condolences to the family of the deceased," the embassy said in an update on X.
AIMIM chief Asaduddin Owaisi identified the deceased as Mohammad Yousuf Ali and said his family members had also been injured in the attack.
"It's been confirmed that Yousuf sahab has passed away in the attack," Owaisi said in a post. "His son is undergoing knee surgery, another son is in the hospital and 3 of his toes have been cut off. His daughter and wife are safe. His aunt (chachi) was with them, and suffered injuries to the head but is out of danger."
Owaisi said he was in touch with Yousuf's brother-in-law in Riyadh and that the Indian embassy's deputy chief of mission had assured him that the family was being looked after. He also urged External Affairs Minister S Jaishankar to provide all possible assistance.
The family is from Mehdipatnam in Hyderabad, Owaisi said.
Riyadh airport hit for second day
The death came amid a fresh strike on Riyadh's international airport on Sunday, a day after a missile attack killed 12 people and wounded more than 300, some critically.
A Saudi-led coalition fighting Iran-backed Houthi rebels in Yemen said a projectile struck a passenger terminal at the airport on Sunday. There were no immediate details about the latest strike, which hit the complex housing terminals 3 and 4 for domestic flights.
Saturday's attack was the deadliest in a Gulf Arab nation since the Iran war began.
The latest escalation threatens to draw greater US military involvement. US President Donald Trump has said he is weighing joining the fight against the Houthis.
Sunday's strike came shortly after the Houthis said the airport under their control in Yemen's capital, Sanaa, had been hit again. They blamed Saudi Arabia.
King Khalid International Airport remained closed on Sunday.