"Two more persons have died (during treatment). With this, the death toll has climbed to 25. Among the deceased are 20 women and five men," Additional Director General of Police (Balaghat range) G Janardhan told PTI.
He said of the five others injured, three are being treated outside the state and two at a local hospital.
Fire had broken out in the cracker factory, located around 10 kms from the district headquarters in the Kotwali police station limits, yesterday afternoon when the workers were present there, the ADG said.
As per preliminary investigation, intense heat caused a spark during cracker assembling that ignited the fire, he said.
According to Balaghat district Collector Bharat Yadav, the cracker factory is owned by Waris Ahmed and was being run legally.
The victims were factory workers, he said, adding that the mishap occurred when the production was on.
A magisterial inquiry has been ordered into the incident.