Depends.
If AZM was always meant to be a developmental effort, it would continue as our indigenous project. But if we were to pick-up FC-31/J-35, then I think we would likely steer AZM into a heavyweight, strike-focused aircraft.
OTOH, if we were always going to focus on one platform, then one of two things:
1. We pick up FC-31 and, more or less, close the book on AZM.
2. We pick up FC-31 and work on AZM as a means to develop our R&D base. So, we may not even produce our own fighter per se, but we could develop flight control tech, composites, avionics, etc. We use that basis to localize our inputs for the J-35, or we take on a 6th-gen fighter much later on.