Hi @Isha Sharma,
Thanks for contacting Microsoft Q&A platform.
Follow below steps to achieve your requirement.
You could use Disk2vhd
to create a vhd-file from a disk of a physical computer: https://learn.microsoft.com/en-us/sysinternals/downloads/disk2vhd
Prepare a Windows VHD or VHDX to upload to Azure -> https://learn.microsoft.com/en-us/azure/virtual-machines/windows/prepare-for-upload-vhd-image
Upload a generalized VHD and use it to create new VMs in Azure -> https://learn.microsoft.com/en-us/azure/virtual-machines/windows/upload-generalized-managed
Create a managed image of a generalized VM in Azure -> https://learn.microsoft.com/en-us/azure/virtual-machines/windows/capture-image-resource
Create a VM from a managed image -> https://learn.microsoft.com/en-us/azure/virtual-machines/windows/create-vm-generalized-managed
Hope this helps you.