How did the dynasty of Nizam Shahis of Ahmadnagar come to an end?

The Nizam Shahi line came to an end when the Ahmadnagar Sultanate was finally subdued and annexed by the Mughals. Shah Jahan’s Deccan campaign culminated in the subjugation of the Nizam Shahi rulers and the annexation of Ahmadnagar in 1636, despite resistance led by Malik Ambar [1]. The subsequent Mughal capture of key strongholds, notably the fall of Daulatabad, marked the definitive end of the Nizam Shahi dynasty and the termination of the independent Ahmadnagar Sultanate [2]. Thus the dynasty’s extinction is best described as its incorporation into the Mughal Empire, aligning with option 1.

Sources

1. [1] History , class XI (Tamilnadu state board 2024 ed.) > Chapter 14: The Mughal Empire > Deccan Sultanates > p. 209
2. [2] https://en.wikipedia.org/wiki/Siege_of_Daulatabad