The 33-year-old former beauty queen, who married Bhupathi in February last year, is fine, and the baby is healthy, said a source close to the actress.
Bhupathi, who always wished for a daughter, is elated with the baby. But he wasn't with Lara when she delivered, as he was in Melbourne playing in the Australian Open.
It was definitely his lucky day as he won the first round of the mixed doubles with Sania Mirza.
Bhupathi took to Twitter to announce his little angel's birth. "ITS A GIRL!!!!!!!!!!!!!!!!!!" he tweeted, following which several celebrities began sending out their good wishes to the couple and the newborn.
Here's what the celebrities had to say:
Ken Ghosh: Congrats Mahesh and Lara! It's a girl.
Bipasha Basu: Congratulations to Lara and Mahesh for having a baby girl! Wow.
Neil Nitin Mukesh: Congratulations to my dear Mahesh Bhupathi and darling Lara on the arrival of the princess. God bless you all.
Rahul Bose: Huge congratulations to Lara Dutta and Mahesh Bhupathi, the proud parents of a baby girl. To top that, Mahesh won his match today! Australian Open.
Sophie Choudry: Super news! Congratulations Mahesh Bhupathi and Lara Dutta on the arrival of your little princess. Big hug and God bless.
Neha Dhupia: Congratulations to the lovely couple Mahesh Bhupathi and Lara Dutta on the arrival of their little princess! Lots of happiness, always.
Celina Jaitly: I am so happy for Lara Dutta and Mahesh Bhupathi. Blessed with a little angel girl.