Third battle of Panipat is widely believed that had wiped out Maratha supremacy in the north

I think, an analysis of the aftermath and effects of the Battle is necessary to address this point, since the notion that Maratha ambitions in the North were completely thwarted owing to this singular moment and defeat is not based in any solid evidence.

The reception of the news of the Panipat disaster :

The Peshwa Balaji Bajirao, had dispatched a magnificent army under Sadashivrao Bhau his cousin, along with his son Vishwasrao, and the flower of the Maratha Military, the Huzurat and the Gardis were with him, to guarantee him a victory against the Shah Abdali in the North. The last correspondence that the Peshwa received from Bhau was dated November 14th, the day when the Maratha and Durrani forces had confronted each other in the field around Panipat, before the long wait ensued and the fateful battle was fought in January next year. For the Peshwa, victory was expected, even if such victory did not materialise, given the disposition of the Maratha army, he was confident that Bhau would hold the Durrani in place while he marched from Poona to the north and the two armies would crush the Afghans between them. Therefore, with Supreme confidence in his cousin, the Peshwa leisurely left Poona around Dussehra, reached Ahmednagar and spent two months near the Godavari, before crossing it. On 9th January, he sent back Raghunath Rao, his brother to the Deccan to watch over the Nizam's forces, while he continued with his magnificent host to Malwa, which he entered on 18th of January. He immediately dispatched letters to Bhau, inquiring on his position and giving instructions regarding strategy. From this day onwards, news trickled in, in the form of men retreating from the Battle back to their homes, but none of these reports were conclusive, only this was clear, that Bhau's situation was desperate, that a starved Maratha army was defeated by the Afghans. Yet, no clear indications of who survived. Finally, in February, from Nana Purandare, he recieved the details of the horrible events that had transpired on 14th of January 1761, the death of his son and cousin broke his heart. He would remain in Malwa until 22nd March. Yet, the broken hearted Peshwa's mere presence halted any immediate changes in the Maratha position in North India. On the one hand, those who had deserted from Panipat were dealt with severely, namely the leaders who retreated and failed to even hold Delhi in their panic such as Malharrao Holkar, Naro Shankar and the Pawars. Their lands being confiscated for a few months and returned only when conditions were deemed normal. On the other, the soldiers and officers under the Peshwas immediate command worked tirelessly to restore Maratha rule and some sense of order to the Provinces of the North such as Malwa, Bundelkhand and the Doab territories. On the 10th of February, 1761, Gulraj, a diplomatic agent of Abdali reached Malwa and met the Peshwa along with a letter from Abdali which read as follows :

"There is no real reason why there should exist any ill-feeling between you and us ; true you have lost your son and brother in the unfortunate fight : but it was entirely provoked by Bhau Saheb and we could not act otherwise than we did in self-defence. However, we are deeply sorry for these losses. We readily leave to you the subject of the imperial management of Delhi, provided you allow us to hold the Punjab utpo the river Satlaj, and support Shah Alam as the Emperor. You must forget the regrettable events that have taken place and entertain a lasting friendship towards us, which we are anxiously soliciting."

The peace would formally be concluded under Peshwa Madhavrao I, in 1763, since Balaji Bajirao would die soon after receiving news of Vishwasrao's death, on the 23rd of June 1761, but for the time being, the situation in the North was status quo ante. Ultimately, apart from a blow on Maratha military prestige and taking a toll on the noble houses of the Maratha nation and it's de facto ruling dynasty the Peshwas, the Battle and the results thereof, did not reverse the Maratha position to any considerable degree.

Actual long term effects of the Panipat disaster, on the Maratha nation and the subcontinent :

• The second coming of the "Heavenly Born General", Madhavrao I, becomes Peshwa : Born on the 15th of February 1745, Peshwa Madhavrao I, was 16 years old when he ascended to the office of the Peshwa on the 23rd of June, 1761. He was dubbed by Grant Duff as "the greatest of the Peshwas", while the title may be contested, this fact is not, that Madhavrao I, was responsible along with his contemporaries Mahadji Scindia and Nana Phadnis for the era of Maratha Resurgence. To understand the value of Madhavrao's successes, one must first appreciate the odds he was against. From the very beginning, he had to contend against Raghunath Rao, his uncle and Regent, whose overbearing and constant attempt to take over the seat of the Peshwa was a challenge to Madhavrao throughout his career. Added to this was the political opposition to the recovering Maratha nation from every direction. In the Deccan the Nizam of Hyderabad sought to capitalise on the internal dissentions between Raghunath Rao and Madhavrao and waged war against them, only to be defeated by the latter. Another opponent in the south was Hyder Ali, now Sultan of Mysore. In his repeated expeditions against Hyder Ali, Madhavrao reasserted Peshwa military superiority over the south, though not conquering Hyder Ali completely. On the other hand, the Peshwa also contended with the English, and as one of the few princes of the period who had foresight regarding the grants of land to foreign trading companies and the consequences thereof, he never budged to English demands. During his reign, he checked the advances of the Nawabs of Awadh and Rohillkhand, and the Rajputs and strengthened the Maratha position in the Malwa, Bundelkhand and Rajputana regions, constantly keeping a close watch, dispatching forces and relief as necessary and utilising the valuable services of Holkar and Scindia. As Grant Duff said about this Peshwa : "And the plains of Panipat were not more fatal to the Maratha Empire than the early end of this excellent Prince". Therefore, until his death in 1772, Madhavrao served his nation well and restored and maintained the Maratha position in the North and the south.