Ballajee Bajee Rao was obliged to return to Satara, and Sumbhajee was allowed to retreat, after making peace with the Mahrattas.

The promptitude and energy with which the English had come to the assistance of Mannajee raised them greatly in the esteem of the new Peishwa, and strengthened the bonds of the alliance.
Mannajee now found it expedient to make a solid peace with the English.
The new Peishwa had his hands full at Satara.

The only power able to afford him ready protection against Sumbhajee was the English, the value of whose friendship he had lately experienced.

So he sent agents to Bombay, offering to pay a sum of Rs.7500, on restitution of the gallivats taken from him by Inchbird the year before.

On this basis a peace was made.
At the same time, the Portuguese, whose power and resources were fast diminishing, recognized the difficulty of retaining the isolated fortress of Chaul.