Yes.It's a dilemma for India! Who to support? India has good ties with both Armenia and Azerbaijan. The North-South international transport corridor goes from Mumbai to Chabahar via Azerbaijan to Moscow, something crucial for India's connectivity plans. .
Another thing to note: according to conservative estimates one sixth of Iran's 70 million population is of Azeri ethnicity. The vast majority of Iranian Azeris are located in the north-west of Iran ,near to Iran's border with Turkey.
It's not difficult to imagine the West and her proxies fomenting an Azeri insurgency in Iran,.
This might be sold to the Iranian Azeris as an act of solidarity with the nation of Azerbaijan and a way of fighting back against Iran's support of the territorial status quo between Armenia and Azerbaijan and ,also, throwing off the yoke of Persian hegemony and central Iranian government oppression
Such a scenario would almost certainly harm the prospects of North-South transport corridor project and consequently India's strategic interests.