The Indian-designed interceptor was fired from the Defense Research Development Organization's Integrated Test Range in Odisha Friday, the Hindustan Times reported.
Its target was a "hostile" ballistic missile launched from another test range at Chandipur.
A few minutes later the advanced air defense interceptor missile was fired from a mobile launcher off the Odisha coast 43 miles from Chandipur.
The on-board radio frequency seeker identified the target missile and guided the AAD missile to the target missile, ITR officials said.
"It hit the target and destroyed it," ITR director S.P. Dash said, noting the interception took place at an altitude of 9 miles.
The successful test made India the fifth nation in the world to have such missile defense capabilities, he said.