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Bhagalpur District Magistrate Subrat Kumar Sen said the blast took place inside the house of Mahendra Mandal in the Kajbalichak locality of the town in the early hours.
The house of Mandal, besides two adjoining buildings, was reduced to rubble by the impact of the explosion, the sound of which was heard far and wide, said the DM, adding that earth-moving equipment was brought in to clear the debris.
Teams of bomb disposal squad and forensic experts were collecting samples to ascertain the type of material that caused the blast, he said.
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Nine survivors have been rushed to a hospital, Sen said.
The DM said Mandal has been previously involved in illegal manufacture of firecrackers, and a similar explosion at his house in 2008 had killed three people, including his wife.