Over 400 people, including 190 patients, were rescued, police said.
Smoke engulfed the four-storied hospital after an oxygen cylinder exploded apparently due to short circuit and minor flames erupted in one part of the building, though it was immediately extinguished, a senior police official said.
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"As many as 193 patients, who were undergoing treatment at the hospital along with their attendants among others -- all totalling over 400 -- were rescued," the official, who was part of the rescue operation, told PTI over phone.
The patients were shifted to different hospitals in Warangal, however, a 45-year-old patient, whose condition had got critical due to "suffocation" in view of the smoke died after being shifter to another hospital, the official has said.
He added that the condition of another patient is also critical even as he clarified that no one died in the hospital where the fire incident occurred.
Deputy Chief Minister Kadiam Srihari, who visited the hospital and supervised the rescue operation, has ordered an inquiry into the incident.
Meanwhile, Warangal Commissioner of Police G Sudheer Babu said he has constituted a team involving officials from the police, fire and electricity departments to determine the exact cause of the fire.
Probe is on, added the official.