Vijaya Nagara empire survived the battle of Talikota and prospered further for many years.
http://www.preservearticles.com/2012041030158/what-was-the-consequence-of-battleof-talikota.html
Vijaya Nagara Empire ruled the entire South India for many number of years. South India was free of Muslim rule for a very long time because of Vijaya Nagara empire. Vijayana Nagara empire territories were captured by Marathas and some of the territory was lost by them to Aurangezeb. But defeat of Marathas in the Third Battle of Panipat, led to their decline and loss of territory to European forces.
In 1761 only Hyder Ali captured Mysore by replacing the Wodeyar King.
The Nawabdom of the Carnatic was established by the Mughal Emperor Aurangzeb, who in 1692 appointed Zulfiqar Ali Khan as the first Nawab of the Carnatic, with his seat at Arcot as a reward for his victory over the Marathas led by Rajaram
http://en.wikipedia.org/wiki/Nawab_of_the_Carnatic