Ahmad Shah III was succeeded by Muhammad Shah III. He reigned for nearly 20 years. Through his extensive conquests he regained many lost territories, the most famous being his raid on Kanchipuram.
Madhav Rao defeated the Nizam of Hyderabad and also compelled Haidar Ali of Mysore to pay tribute. He reasserted control over northern India by defeating the Rohillas and also subjugated the Rajput state and Jat chiefs.