The incident occurred in Ahmednagar in Kandukur mandal of Ranga Reddy district when the children had entered the lake to take a bath.
Rescue workers retrieved their bodies from the lake. The deceased include a girl.
The dead have been identified as Shilpa, 14, Srujan, 13, Shiva, 12 and Nani, 10.
A pall of gloom descended on the village.
Ranga Reddy district has been receiving heavy rain since Wednesday night.
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