@Tinupriya Adding more info to the above suggestion When you no longer need a data disk that's attached to a virtual machine, you can easily detach it. This removes the disk from the virtual machine, but doesn't remove it from storage.
You should be able to use the Get-AzureDisk PowerShell command to obtain a reference to the unattached disk. From there you can call Update-AzureDisk to increase the size of the disk.
Two notes which you may already know; you can't shrink a disk (without recreating it from the underlying blob) once you increase its size and generally you should avoid putting data on an OS disk so if you need more space just add another data disk.
Also refer to this article
Hope this helps!
Kindly let us know if the above helps or you need further assistance on this issue.
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