The Marathas, under the leadership of Peshwa Madhavrao and his uncle Raghunathrao, launched a campaign against the Nizam's forces and eventually defeated them in the Battle of Uruli.

This victory helped the Marathas regain their control over the Deccan region and weakened the power and influence of the Nizam.

The Marathas used their superior cavalry and light infantry to launch a surprise attack on the Nizam's forces.

[1] Peshwa Madhavrao himself led his continget on the right flank along with Janoji Bhonsle and Malhar Rao Holkar, Similarly Raghunath Rao charged onto enemies left flank until the Nizam was encircled, The situation became worst for Nizam when his brother Mir Mughal and a Maratha subordinate which was secretely ranked in the Nizam's army deserted him and joined Maratha forces, thus seeing himself as trapped thus Nizam begged to Marathas for retreating with his army by surrendering to Marathas in the Treaty of Aurangabad.

[9] The surrender consolidated Maratha dominance over the Deccan region and weakened the Nizam's power.