The tower, located in a residential compound, was targetted by the unidentified attackers at Gadoodbagh in Habbakadal area around noon, sources said.
The compound, owned by one Abdul Ahad Haji, houses two mobile towers, the sources said, adding the explosion caused damage to a private car parked there.
A police spokesman said, "We are investigating the matter and analysing the nature of the explosive."
Though first such incident in Srinagar city, the attack comes after a series of strikes on communication facilities by militants in north Kashmir's Sopore and Pattan townships in Baramulla district and Handwara in Kupwara district which have left two persons dead.
The militants had allegedly installed communication equipment atop the towers of private and PSU companies.
A lesser-known militant outfit 'Lashker-e-Islam' has claimed responsibility for the attacks in north Kashmir and asked the mobile operators to wind up services across the Valley.