In all eight students went for a swim at the beach when five of them accidentally got washed away, according to police.
Three bodies were fished out later while search is on for rest two.
Three students apparently swam to safety.
The deceased hailed from Kapula Palem near Yanam.
Deputy Chief Minister (Home) N China Rajappa has expressed grief over the incident.
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He spoke to East Godavari district Superintendent of Police over phone and enquired about the incident.
District SP Ravi Prakash visited the mishap scene and supervised the rescue operation.
Bodies of the victims have been taken to government general hospital for postmortem.
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