Grady, the SNP MP for Glasgow North, faces being suspended from the Commons for two days.
He had been accused of inappropriately touching the man, then aged 19, in a pub in London in 2016.
A Westminster probe yesterday reported: "At an SNP social event in a pub on October 20, 2016, the complainant and the respondent were present. The respondent remained after all other MPs had left.
"Mr Grady, under the influence of alcohol, made a sexual advance to the complainant in the mistaken belief that this advance would be welcomed.
"The advance included the touching and stroking of the complainant's neck, hair, and back."
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