The explosion took place while the students were travelling on a motorcycle towards Tarrem village from Sarkeguda under Basaguda police station limits, Bijapur Additional Superintendent of Police Indira Kalyan Elesela told PTI.
The victims were identified as Rameshwar Oyam (18) and Vishal (16), both students of class 10th and 9th respectively at Basaguda government school, he said.
"The Improvised Explosive Device (IED) came under their motorcycle that went off injuring the duo," he said.
The explosive was allegedly planted by Maoists to cause damage to security forces during their operation in the region, located around 450 kms away from here, he added.
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In a separate incident, two Naxals, including a woman who was carrying a reward of Rs 2 lakh on her head, were arrested from Farsegarh police station area of the district, Elesela said.
A joint team of Chhattisgarh Armed Force (CAF) and district force was carrying out a combing operation in Chuchkonta village of the region, when they got a tip off about the presence of rebels at Dokke nullah, he said.
Two ultras - Kuhrami Foolmati (22) and Jaiman Poyam (25) were nabbed after a short chase, the ASP said.
Foolmati has been active as military platoon no. 2 member and a muzzle loading gun was also recovered from her possession, the officer added.