Machilipatnam DSP Surya Sravankumar told PTI that the incident took place when five Intermediate students from Gudivada town went to the beach for a holy dip this morning on the occasion of a local festival.
While the students enjoyed a swim in the sea (Bay of Bengal), they were caught in the heavy currents and were washed away, police said.
However, local divers, fishermen and photographers managed to rescue three of them while two others are still 'missing', they said.
The two feared drowned were identified as T Saikumar (18), and G Sandeep (18), the DSP said.
A case under relevant sections of IPC has been registered in Machilipatnam rural police station and investigations are on.