The Dreamliner aircraft was carrying around 200 passengers and their needs have been taken care of, an Air India official said.
The incident happened on Sunday night.
Another flight has been sent to Baku for ferrying the passengers stranded at Baku airport, the official added.
"#AI130 LHR-BOM diverted to Baku due (to) operational reasons. All pax are taken care of," Air India said in a tweet.
A source said that due to technical issues, it was decided to divert the flight, which landed at Baku around 2345 hours (IST) on Sunday.