The incident took place in the busy Ramgopalpet area of Secunderabad, the twin city of Hyderabad.
According to eye-witnesses a woman died on the spot after she jumped from the second floor to escape from the leaping flames. Three others injured in the mishap were shifted to nearby KIMS Hospital.
The fire broke out in a gym in Prem Market Bhavan, a three-storey building. The flames engulfed the building before the fire tenders could rush to the scene and douse it.
Police were investigating the cause of the fire but a short circuit is suspected to have triggered the fire.