Some context is necessary to answer your question
The term "Naxalite" does not refer to a specific group, but dozens of Maoist & "maoist" parties currently engaged in armed struggle. Most of these parties spend at least as much time fighting each other as they do the state. The largest of these groups is the CPI (Maoist), who are the group people are usually referring to when they use the term "Naxals". The CPI (Maoist) was formed when two formerly hostile Maoist parties formed - essentially by one group killing off most of the other groups leadership in their armed struggle with each other.
The CPI (Maoist) has suffered extremely heavy losses since the onset of the state repression plan "Operation Greenhunt". Most of the CPI (Maoist)'s leadership, and mid level cadre have been killed. Some people claim that the CPI Maoist (or "naxalites") control 40% of India, but this comes from a misunderstanding of statistics put out in 2011. One famous map from 2011 shows that CPI (maoist) was active in 40% of rural regions in the country, in an area called the "red belt". By 2013, Operation Greenhunt had reduced them to less than half of that reach, and by 2016, it was halved again. There have been some minor resurgences in formerly active regions, but in general the CPI (Maoist) is currently losing, hard. Whats more, they are confined to Adivasi (tribal) areas of the country, and have been unable to expand outside of them, or into the urban proletariat.
Other Naxal groups I am unsure of. I know a couple of Naxal groups have been exterminated by the CPI (Maoist), or state forces. The majority of them exist on a very small scale though, and are again restricted to tribal regions of the country.
CPP is not in a good way. In the1980's, the NPA consisted of around 24'000-26'000 armed Guerilla fighters. With the break up of the Marcos regime, they slowly deteriorated. In 2004, they had around 6000 fighters, and by 2007 they had been reduced to less than 4000. By 2016, they had around 1000 fighters left, and the NPA was composed not of rural peasants/workers as was the case in the 1980's, but pety-bourgeois students who they'd brought in from student groups in Manila for desperately needed manpower. We know a lot of this because classified intelligence documents from the US embassy in manila have leaked via wikileaks, and directly contradicted the claims of the CPP-NDF-NPA
In general, the CPP has been trying to transition towards a social-democratic/reformist party for a while now. Since the 2000's, they have been shifting their base from rural regions toward the urban middle class, and have been generally "bourgifying" their image. During the last election, the CPP shilled hard for Rodrigo Duterte. Joma Sison is on record claiming that Duterte was "our first left wing president" and "The philippines hugo chavez".
When Duterte was actually elected, CPP front groups on the ground began claiming that the country was in "the early phases of socialist construction" as an attempt to appease the duterte regime. They were pushing extremely hard for capitulation, and surrender to the Duterte admin in return for concessions - mostly land reform, a minor industrialization push and workers rights reform.
The peace negotiations were ruined for two reasons (cont..)