New Delhi, July 28 -- MUMBAI - Hindustan Unilever posted a 4 percent drop in quarterly net profit on Monday even as India's biggest consumer goods company grew revenue by more than ten percent, a split that laid bare how sharply rising input costs are eating into margins at a company whose products sit in nearly every Indian household.

Net profit for the quarter ended June 30 fell to Rs 2,631 crore from Rs 2,740 crore a year earlier. Net sales rose to Rs 17,149 crore, a 10.3 percent increase driven by a combination of volume growth and price adjustments. The market had expected stronger bottom-line performance, and shares in the Bombay Stock Exchange-listed company fell as much as 6 percent in intraday trading before partially recovering...