Hi Sai,
Yes, it is very much possible with the help of the item categories.
MATERIAL 1: One a Dummy material (No Stock) - Item Category with Billing Relevance as "I" and the item category will not have delivery possible.
MATERIAL 2: Physical product (With Stock) - Item Category with Billing Relevance as "A" and the item category will have delivery possible.
Please refer to the below thread: