Nine Maoists, including six women, were gunned down by police in Rayalaseema region on Friday.
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The bodies are yet to be identified, but the police claim that the Maoists killed were among the top leaders of the outlawed Communist Party of India (Maoist).
A large cache of arms and ammunition was also recovered.
This is the first time in recent months that such a large number of Maoists were gunned down.
Police recovered one 303 rifle, three self loading rifles, one Sten gun, 38 rockets, claymore mines, time bombs, 25 kit bags and tents from the encounter site.
More than 350 people have been killed in Maoist-related violence since January last year when a ceasefire since eight months was broke down.