Victory produced a factory, spoils, and a settlement

Ayaz returned the Portuguese prisoners well fed and clothed, then agreed to a factory guarded by his own soldiers. His withdrawal and the coalition's deployment suggest that some accommodation may have been arranged before the battle, though this remains an inference. Almeida declined to occupy Diu or accept a fortress because the continuing cost would burden the Portuguese force. Captured ships, hundreds of bronze guns, flags, and a large payment from merchants rewarded the victors. Part of the money went to sailors and a hospital at Cochin. Portugal later made unsuccessful attempts to seize the island before the Treaty of Bassein opened the way for the fortress built in 1535.