The conquest of Punjab brought the Marathas into direct confrontation with the Afgan general, Ahmad Shah Abddali. The Maratha and Afgan forces met at Paniat in AD 1761. While Najib-ud-Daulah of Rohilkhand and Shuja-ud-Daulah of Awadh helped the Afgan forces, no Indian power came forward to assist the Marathas. This was because the Marathas had alienated all of them. This, along with the fact that the Marathas lacked unity, were two of the biggest factors in their defeat in the third battle of Panipath.
The defeat at Panipat ended the possibility of the Maratha establishing an all-India empire. Different Maratha chiefs broke away and started ruling over small areas. The battle also gave an opportunity to the English east India company to consolidate its power in India.