Three straight years of increases
IBM and the Ponemon Institute have tracked breach costs in India for years. In 2024 the average was ₹19.5 crore. It rose to ₹22 crore in 2025 and ₹25.5 crore in 2026. The average breach now exposes 39,500 records, up from 38,200 a year earlier.
| Item | Value |
|---|---|
| 2024 | ₹19.5 |
| 2025 | ₹22.0 |
| 2026 | ₹25.5 |
Automation is the biggest lever
The widest gap in the report is between companies that automate security and companies that don't. Organisations with no AI or security automation paid ₹31.6 crore per breach. Those with extensive automation paid ₹21.3 crore. About a third of Indian organisations (32%) still use none.
| Item | Value |
|---|---|
| No use | ₹31.6 |
| Limited use | ₹23.1 |
| Extensive use | ₹21.3 |
How attackers get in
Phishing remains the most common starting point, and it now includes fake SMS and voice calls as well as email. Drive-by compromises (malicious or hijacked websites) and supply chain attacks follow close behind. Together these three explain half of all breaches in the study.
| Item | Value |
|---|---|
| Phishing (incl. SMS, voice) | 19% |
| Drive-by compromise | 16% |
| Supply chain compromise | 15% |
Some sectors pay far more
| Item | Value |
|---|---|
| Financial services | ₹40.9 |
| Technology | ₹35.7 |
| Communications | ₹34.5 |
| All-sector average | ₹25.5 |
What I recommend
- Run phishing simulations that include SMS and voice, not just email.
- Book a yearly penetration test. In this study, offensive testing saved ₹2.47 crore on average.
- Automate the basics: central logging, alerting and endpoint detection.
- Write a one-page AI usage policy and block unapproved tools on work devices.
- Review vendor and plugin access every quarter. Supply chain attacks start there.
- Write an incident response plan and rehearse it. 67% of breached firms plan to invest here, after the damage is done.
Frequently asked questions
What is the average cost of a data breach in India in 2026?
According to IBM's Cost of a Data Breach Report 2026, the average breach in India cost ₹25.5 crore (INR 255 million), up 15.9% from ₹22 crore in 2025.
What is the most common cause of data breaches in India?
Phishing, including SMS and voice phishing, started 19% of breaches in India in 2026. Drive-by compromise (16%) and supply chain compromise (15%) were next.
How can a company reduce the cost of a data breach?
IBM found that Indian organisations with extensive AI and security automation paid ₹21.3 crore per breach, against ₹31.6 crore for those with none. Offensive security testing such as penetration testing saved ₹2.47 crore on average.
