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The only explanation I have is that the bullet is traveling much slower than expected.
1. Have you chonographed that bullet to get the muzzle velocity? The velocity should be around 2940 fps at the muzzle. But the 7 inch drop sounds like it is going only around 2750 fps at the muzzle, 2560 at 100 yards, and 2380 at 200 yards.
Normally a 140 gr. .270 Win. doesn't drop 7 inches until it goes 300 yards and around 20 inches at 400 yards.
2. How long is the barrel on that rifle? Velocity drop by about 50 fps per inch on shorter barrels. The speed of 2940 fps, above, was based on a rifle with a 24-26 inch barrel.
If that did not help, please let me know.