Agarwal, who acted in several hit films, was admitted to a corporate hospital around 2.30 a.m. after she consumed disinfectant at her house in the posh Jubliee Hills neighborhood.
Doctors said the actress was out of danger but would remain in Intensive Care Unit under observation.
There are conflicting versions over what drove her to suicide.
Agarwal reportedly told the police that she attempted suicide because she was hurt by rumours of her love affair with a co-star and its impact on her career. The police have registered a case against the actress.
Movie sources, however, said she tried to kill herself as her parents were opposed to her desire to marry co-star Tharun. They together had acted in "Nuvvu Leka Nenu Lenu"
Her family members refused to comment on the attempted suicide.
Aarti, who was born and brought up in New Jersey, began her film career in 1999 with a Hindi film "Pagalpan" but the film bombed at the box office. She then moved to Telugu films and soon had a series of hits.
The suicide attempt by Aarti is another jolt to the Telugu films industry, the second biggest in India after bollywood.
Last year, actress Gazala also attempted suicide. In 2002 Pratyusha, a popular actress, committed suicide, also over a failed love affair.