It's possible that Audio quality is much better if i use the Toslink interface instead of HDMI?.. Let say content being played is Audio only..
It's entirely possible, and perhaps even likely. The difference may not be "much" in most cases (because you said much better), but it's probably noticeable.
Of course, the implementation of the Toslink or Coax SPDIF output also matters (dedicated media players tend to have poor ones). A poor implementation of a sound design may not end up as good. Some receivers may also have poor quality spdif inputs, which may put them at a disadvantage (or the HDMI implementation may be excellent in certain devices).
As with anything, ymmv.
This is like a sedan vs. a sports car. The sedan is more versatile (HDMI) but typically does not perform as well as the sports car (SPDIF). Despite this, a good sedan may perform better than a bad sports car, however.